Instacart Shopper Taxes in Maine - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Maine

Navigating the picturesque roads of Maine 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 to both federal and state tax obligations.

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 Maine Handles Gig Worker Taxes

As a resident of Maine, you are required to file a state income tax return, even if your federal tax liability is zero. Maine utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Maine residents filing as self-employed individuals will primarily use Form 1040ME, Maine Individual Income Tax Return, along with Schedule SE (Self-Employment Income) to calculate their state income tax liability. Maine also has a tax on net self-employment income, which is calculated as 3.8% of your federal adjusted gross income. This is in addition to the regular income tax. It's important to note that Maine conforms to many federal tax provisions, but there can be differences, so staying updated on state-specific changes is vital. Maine’s Bureau of Revenue Services provides detailed information and resources for self-employed individuals; you can find more information at Maine Revenue Services. Accurate record-keeping of all income and expenses is paramount to ensure compliance with Maine’s tax laws and to maximize potential deductions.

Top Tax Deductions for Maine 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 Maine’s rural landscape and potential for significant mileage between deliveries, this deduction can be substantial.
• Tolls & Parking: While Maine doesn’t have extensive toll roads, any tolls incurred during deliveries are deductible. Parking fees directly related to Instacart shopping are also deductible.
• Phone & Data Plan: The portion of your monthly phone and data plan used for business purposes is deductible. Keep a log of business usage to justify the deduction.
• Vehicle-Related Costs: Expenses like car cleaning supplies, phone mounts, insulated hot/cold bags, 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, repairs, and 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 comprises two components: 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’s your responsibility to calculate and pay this tax, typically through estimated tax payments made quarterly to the IRS. Failing to do so can result in penalties.