Instacart Shopper Taxes in Idaho - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Idaho

Navigating the scenic routes and delivering groceries across the Gem State as an Instacart shopper offers flexibility, but also comes with 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 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.

How Idaho Handles Gig Worker Taxes

As a resident of Idaho, you are required to file a state income tax return, even if no Idaho income tax is ultimately due. Idaho operates under a flat income tax system, meaning all taxpayers pay the same rate regardless of income level. For the 2025 tax year, the Idaho income tax rate is currently 5.8%. Self-employed individuals will use Form 40 to report their income and calculate their tax liability. Crucially, the income reported on your federal Schedule C flows directly to your Idaho Form 40. Idaho also requires you to pay estimated taxes quarterly if you expect to owe $1,000 or more in Idaho income tax. This prevents penalties at the end of the year. Idaho’s State Tax Commission provides resources and tools to help navigate these requirements, including information on estimated tax payments and filing deadlines. Remember to keep accurate records of all income and expenses related to your Instacart work, as these will be essential when preparing your Idaho tax return. Idaho also offers various credits and deductions that may reduce your tax liability, so exploring these options is highly recommended. You can find more information and resources on the Idaho State Tax Commission website: https://tax.idaho.gov/

Top Tax Deductions for Idaho Drivers

• Standard Mileage: The most popular deduction for Instacart shoppers. The 2025 rate is 70 cents per mile. Given Idaho’s relatively rural landscape and potential for longer delivery distances, maximizing this deduction can significantly reduce your tax burden.
• Tolls & Parking: While Idaho doesn’t have extensive toll roads, any parking fees incurred directly while performing Instacart deliveries are 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 this 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 comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment where your employer withholds these taxes, as an Instacart shopper, you are responsible for paying both the employer and employee portions. This is why it’s often referred to as “self-employment tax.” Remember, this tax is calculated on your net earnings – your income after deducting business expenses.