Instacart Shopper Taxes in Louisiana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Louisiana

Navigating the vibrant streets of Louisiana 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 typically done using Schedule C (Profit or Loss from Business) when filing Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is crucial for a smooth tax filing process.

How Louisiana Handles Gig Worker Taxes

As a resident of Louisiana, a state income tax return is required, even if no state income tax was withheld from your Instacart earnings. Louisiana operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Louisiana utilizes a progressive tax rate structure with rates ranging from 1.85% to 4.25%, depending on your filing status and taxable income. The primary form for self-employed individuals to report income and calculate state taxes is Louisiana Form IT-540, Individual Income Tax Return. It's important to note that Louisiana allows for itemized deductions similar to the federal level, potentially reducing your state tax liability. Louisiana also offers various credits that may be applicable, such as the Louisiana Earned Income Tax Credit. Staying informed about changes to Louisiana tax laws is essential, and the Louisiana Department of Revenue provides resources and updates on their website: Louisiana Department of Revenue. Remember to accurately report all Instacart income on your IT-540, and consider consulting with a tax professional to ensure you are maximizing all available deductions and credits.

Top Tax Deductions for Louisiana Drivers

• Standard Mileage: The most popular deduction for Instacart shoppers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given Louisiana's relatively moderate gas prices compared to states like California, the standard mileage rate is often a beneficial and simplified method for calculating vehicle expenses.
• Tolls & Parking: While Louisiana doesn't have extensive toll road networks, any tolls incurred during deliveries are deductible. Parking fees directly related to Instacart deliveries are also deductible.
• 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, 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, repairs, insurance) in the same tax 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, so it’s crucial to plan for this expense throughout the year, potentially making estimated tax payments quarterly to avoid penalties.