Instacart Shopper Taxes in Georgia - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Georgia

Navigating the Peach State as an Instacart shopper offers flexibility, but it also comes with tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.

The IRS requires all Instacart shoppers to report their earnings as self-employment income on Schedule C (Profit or Loss From Business) when filing their federal income tax return. Earnings over $400 necessitate the payment of self-employment taxes, which cover both Social Security and Medicare contributions. Platforms such as Instacart do not withhold these taxes, meaning it’s the shopper’s responsibility to calculate and remit them, typically through estimated tax payments throughout the year.

How Georgia Handles Gig Worker Taxes

As a resident of Georgia, a state income tax return is required, even if no state income tax is ultimately due. Georgia operates under a flat income tax rate, currently at 5.49% for the 2025 tax year. This means all taxable income, regardless of the income bracket, is taxed at the same rate. Instacart shoppers will report their self-employment income on Form 540, Georgia Individual Income Tax Return, and Schedule 1, Additional Income and Adjustments. It’s important to accurately calculate your net profit from Schedule C (federal) and transfer that amount to your Georgia return. Georgia also allows for a standard deduction, which can reduce your taxable income. Furthermore, Georgia offers various credits and deductions that may be applicable to self-employed individuals, such as those related to business expenses. Keep meticulous records of all income and expenses to ensure accurate reporting and maximize potential tax savings. Georgia’s Department of Revenue provides detailed information and resources for taxpayers, including online filing options and tax forms. Failure to file and pay state income taxes can result in penalties and interest charges. Remember to make estimated tax payments quarterly if you anticipate owing $1,000 or more in state income tax.

For more information, please visit the Georgia Department of Revenue: https://dor.georgia.gov/

Top Tax Deductions for Georgia Drivers

• Standard Mileage: The most popular deduction for Instacart shoppers. The 2025 rate is 70 cents per mile. Given Georgia’s relatively moderate gas prices compared to states like California, the standard mileage rate is often a very advantageous option, simplifying record-keeping and maximizing deductions.
• Tolls & Parking: Georgia has Peach Pass for electronic toll collection on express lanes. Keep records of all toll fees and parking expenses 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. Carefully track business-related calls, texts, and data usage to justify the deduction.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, insulated bags (hot bags/coolers), and dash cams used specifically for Instacart deliveries are deductible.

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 greater deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax is comprised of two parts: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, Instacart and other gig platforms do not withhold these taxes from your earnings. Therefore, it is your responsibility to calculate and pay this tax, typically through quarterly estimated tax payments to the IRS. This ensures you are compliant with tax laws and avoid potential penalties at the end of the year.