Instacart Shopper Taxes in Arkansas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Arkansas

Navigating the scenic byways and bustling cities of Arkansas as an Instacart shopper offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from Instacart are considered self-employment income, requiring diligent record-keeping and accurate tax filing.

The IRS requires all self-employed individuals, including Instacart shoppers, to report their income and pay taxes. This is primarily done using Schedule C (Profit or Loss from Business) when filing your federal income tax return (Form 1040). Furthermore, earnings over $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions, which are not automatically withheld from your Instacart payouts.

How Arkansas Handles Gig Worker Taxes

As a resident of Arkansas, a state income tax return is required, even if no Arkansas income tax was withheld. Arkansas utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Arkansas residents filing as single individuals will face tax brackets ranging from 0% to 5.9%. Married filing jointly will have different bracket thresholds. The primary form for self-employed individuals to report income and calculate Arkansas income tax is Form AR1040. It's crucial to accurately calculate your net profit from Schedule C and transfer that amount to your Arkansas return. Arkansas also allows for certain deductions that may reduce your taxable income, mirroring some federal deductions. Keep detailed records of all income and expenses to ensure accurate filing. The Arkansas Department of Finance and Administration provides comprehensive information and resources for taxpayers, including downloadable forms and instructions. Be aware of estimated tax requirements; if you anticipate owing $1,000 or more in Arkansas income tax, you may need to make quarterly estimated tax payments to avoid penalties. The state also offers various credits and incentives that may be applicable to self-employed individuals, so exploring these options is recommended.

You can find more information and resources on the Arkansas Department of Finance and Administration website: Arkansas Department of Finance and Administration

Top Tax Deductions for Arkansas Drivers

• Standard Mileage: The most popular deduction for Instacart shoppers. The 2025 rate is 70 cents per mile. Given Arkansas's relatively moderate gas prices, the standard mileage rate is likely to be a beneficial option for most shoppers.
• Tolls & Parking: While Arkansas doesn't have extensive toll road systems, any tolls incurred during deliveries are deductible. Parking fees directly related to Instacart deliveries are also deductible.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for business purposes. Keep a log of business-related calls and data usage to support your deduction.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, and insulated hot bags used for deliveries are all deductible business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas, oil changes, or repairs in the same year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax covers both Social Security and Medicare taxes. Unlike traditional employment where these taxes are withheld from your paycheck, as an Instacart shopper, you are responsible for paying both the employer and employee portions. This combined rate of 15.3% applies to your net earnings (income minus business expenses) exceeding $400. You'll calculate this tax on Schedule SE (Self-Employment Tax) and include it with your Form 1040.