Instacart Shopper Taxes in Florida - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Florida

Navigating the Sunshine State as an Instacart shopper offers flexibility, but it also comes with tax responsibilities. As an independent contractor, earnings from Instacart are considered self-employment income, requiring careful attention to both federal and state tax regulations.

The IRS requires all Instacart shoppers to report their income on Schedule C (Profit or Loss from Business) when filing their federal income tax return. Crucially, this income is also subject to self-employment tax, which covers both Social Security and Medicare taxes. Platforms like Instacart do not withhold these taxes, meaning it’s the shopper’s responsibility to calculate and pay them, typically through estimated tax payments throughout the year.

How Florida Handles Gig Worker Taxes

Florida stands out as one of the few states with no state income tax. This means Instacart shoppers in Florida won’t need to file a state income tax return. However, this doesn’t mean tax obligations disappear. While the lack of state income tax is a benefit, Florida’s status as a major tourist destination and cash-based economy can lead to increased scrutiny from the IRS. The IRS may be more likely to audit gig workers, particularly in high-traffic areas like Miami, Orlando, and Tampa, to ensure accurate reporting of income. Maintaining meticulous records of all earnings and expenses is paramount.

Even without a state income tax return, it’s important to understand your business obligations. Florida requires businesses, including sole proprietorships like most Instacart shoppers, to register with the state if operating under a name different from the owner’s legal name (a “Doing Business As” or DBA). This registration is handled through the Florida Department of State, Division of Corporations, accessible at Sunbiz.org. Properly registering your business, even if it’s just a DBA, demonstrates professionalism and compliance. Remember, even though there's no state income tax, accurate federal reporting is vital, especially given the potential for increased IRS attention in Florida.

Top Tax Deductions for Florida Drivers

• Standard Mileage: The most popular and often simplest deduction. For the 2025 tax year, the standard mileage rate is 70 cents per mile. This rate covers wear and tear, gas, oil, and other vehicle-related expenses.
• Tolls & Parking: Florida’s extensive highway system utilizes SunPass and other tolling methods. All toll fees and parking expenses directly related to your Instacart deliveries are deductible. Keep detailed records of these costs.
• Phone & Data Plan: If you use your phone for business purposes – accepting orders, navigating, communicating with customers – you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, insulated hot bags, and even hand sanitizer are deductible as business expenses.

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

Understanding the 15.3% Self-Employment Tax

Self-employment tax is a combined tax for Social Security and Medicare. As an employee, these taxes are typically withheld from your paycheck. However, as an independent contractor, you are responsible for paying both the employer and employee portions, totaling 15.3%. This tax applies to net earnings (income after deductions) exceeding $400. Paying estimated taxes quarterly can help avoid penalties at tax time.