Instacart Shopper Taxes in Delaware - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Delaware

Navigating the historic streets of Delaware as an Instacart shopper offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from Instacart are subject to both federal and state taxes, requiring careful record-keeping throughout the year.

The IRS requires all Instacart shoppers to report their income on Schedule C (Profit or Loss From Business) with Form 1040. Crucially, because no taxes are withheld from your Instacart payments, you are responsible for paying self-employment taxes – Social Security and Medicare – on any net earnings exceeding $400. Proper planning and tracking expenses are essential to minimize your tax liability.

How Delaware Handles Gig Worker Taxes

As a resident of Delaware, you are required to file a state income tax return, even if your only income is from Instacart. Delaware utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Delaware’s tax brackets are expected to remain similar to prior years, ranging from 0% to 6.6%. It's important to consult the Delaware Division of Revenue website for the most up-to-date bracket information as it becomes available. The primary form for self-employed individuals to report income and calculate tax liability is Form 1040-ES, used for estimated tax payments, and Form 1040 when filing the annual return. Delaware also requires you to report your federal adjusted gross income (AGI) on your state return. Delaware does not offer a separate form specifically for gig workers; income is reported through the standard individual income tax process. Remember to accurately calculate and pay estimated taxes quarterly to avoid penalties. Delaware’s tax laws are subject to change, so staying informed through official state resources is vital. The Division of Revenue also provides resources for new businesses, which can be helpful for understanding your obligations as an independent contractor.

You can find more information and resources on the Delaware Division of Revenue website: https://revenue.delaware.gov/

Top Tax Deductions for Delaware Drivers

• Standard Mileage: The most popular deduction for Instacart shoppers. The 2025 rate is 70 cents per mile. Given Delaware’s relatively moderate gas prices compared to states like California, the standard mileage rate is likely to be a beneficial option for most drivers.
• Tolls & Parking: Delaware has tolls on certain highways and bridges, particularly along the turnpike. Keep detailed records of all toll expenses and parking fees incurred while actively shopping or delivering.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for business purposes. If you use your phone 60% of the time for Instacart, you can deduct 60% of the bill.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, insulated bags (hot bags/coolers), and dash cams are deductible as business expenses.

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

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment 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. Instacart and other gig platforms do not withhold these taxes from your earnings, making accurate tax planning and quarterly estimated tax payments crucial to avoid penalties.