Instacart Shopper Taxes in Boston, Massachusetts - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Boston, Massachusetts

Navigating the historic streets of Boston 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 primarily done using Schedule C (Profit or Loss from Business) when filing Form 1040. Furthermore, because no taxes are automatically withheld from your Instacart earnings, you’ll likely owe self-employment tax, covering both Social Security and Medicare contributions.

How Massachusetts Handles Gig Worker Taxes

As a resident of Massachusetts, you are required to file a state income tax return, even if your only income is from Instacart. Massachusetts utilizes a flat income tax rate, currently at 5.0%, for the 2025 tax year. This means all taxable income is subject to the same rate. Instacart earnings are considered taxable income and must be reported on Form MA-1040, Massachusetts Income Tax Return. Self-employed individuals will also need to file Schedule MA-SE, which is used to calculate your Massachusetts self-employment tax. Massachusetts also offers various deductions and credits that may reduce your tax liability. Working in a densely populated city like Boston presents unique challenges and potential deductions. Parking, often expensive and difficult to find, can be a significant business expense. The high demand for Instacart in areas like Back Bay and Fenway can lead to more miles driven, potentially increasing your mileage deduction. Be mindful of any city-specific parking regulations or restrictions that might impact your business operations. It's crucial to maintain accurate records of all income and expenses to ensure accurate tax filing. Massachusetts provides resources for gig workers and self-employed individuals on its Department of Revenue website: Massachusetts Department of Revenue.

Top Tax Deductions for Boston, Massachusetts Drivers

• Standard Mileage: The #1 deduction for most Instacart shoppers. The 2025 rate is 70 cents per mile. Given Boston’s traffic congestion and the distances covered delivering groceries, this deduction can significantly reduce your tax burden.
• Tolls & Parking: Boston and its surrounding areas have tolls on major roadways. Keep detailed records of all toll expenses. Parking costs in Boston are notoriously high; meticulously track all parking fees 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. If you use your phone exclusively for Instacart, you can deduct the entire cost.
• Vehicle-Related Costs: Expenses like car washes (to maintain a professional appearance), phone mounts, insulated hot/cold bags, and even hand sanitizer are deductible as business expenses.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas 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 covers both Social Security and Medicare taxes. 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.