Instacart Shopper Taxes in District of Columbia - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in District of Columbia

Navigating the vibrant streets of Washington, D.C. as an Instacart shopper offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from Instacart are considered self-employment income, requiring careful attention during tax season.

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 Form 1040. Crucially, income exceeding $400 necessitates the payment of self-employment taxes, covering both Social Security and Medicare contributions, which are not automatically withheld from your Instacart earnings.

How District of Columbia Handles Gig Worker Taxes

As a resident of the District of Columbia, you are required to file a District of Columbia individual income tax return, even if you have no District of Columbia tax liability. The District utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, the primary form for self-employed individuals to report income and calculate tax liability is Form D-40, Individual Income Tax Return. You will need to report your net earnings from Schedule C on this form. The District of Columbia also allows for itemized deductions, which may further reduce your tax burden. It's important to note that the District of Columbia conforms to many federal tax provisions, but there can be differences, so staying informed is crucial. The Office of Tax and Revenue (OTR) provides resources and guidance for self-employed individuals. Failure to file and pay taxes on time can result in penalties and interest. The District also offers options for estimated tax payments throughout the year to avoid underpayment penalties, particularly important for those with fluctuating income like Instacart shoppers. Keep meticulous records of all income and expenses to ensure accurate reporting and maximize potential deductions.

Top Tax Deductions for District of Columbia Drivers

• Standard Mileage: The most popular deduction for Instacart shoppers. The 2025 rate is 70 cents per mile for business use of your vehicle. Given the frequent stops and starts inherent in grocery delivery within the city, this method often yields significant savings.
• Tolls & Parking: Navigating D.C. and surrounding areas can involve tolls on routes to Maryland or Virginia, and parking fees are common, especially during peak delivery times. These are deductible business expenses.
• Phone & Data Plan: The portion of your monthly phone and data bill directly related to your Instacart work is deductible. Keep a log of the percentage of time your phone is used for work-related activities.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, and insulated hot/cold bags used for deliveries are all deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, or repairs) in the same tax year. Choose the method that results in the largest 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, totaling 15.3% on net earnings over $400. This is a significant tax obligation, so proper planning and budgeting are essential.

Resource: District of Columbia Office of Tax and Revenue