Instacart Shopper Taxes in Mississippi - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Mississippi

Navigating the Magnolia State as an Instacart shopper offers flexibility, but it also comes with tax responsibilities. As an independent contractor, earnings from Instacart are considered self-employment income, requiring careful attention to both federal and Mississippi state tax regulations.

The IRS requires all self-employed individuals, including Instacart shoppers, to report their income and pay taxes on it. This is typically done using Schedule C (Profit or Loss from Business) when filing Form 1040. Furthermore, because no taxes are automatically withheld from Instacart payments, it’s crucial to plan for and pay self-employment taxes, which cover both Social Security and Medicare.

How Mississippi Handles Gig Worker Taxes

As a resident of Mississippi, you are required to file a state income tax return if your income exceeds the filing threshold. Mississippi operates under a flat income tax rate, currently at 5% for the 2025 tax year. This means all taxable income is taxed at the same percentage, simplifying the calculation process. Instacart earnings are considered taxable income and must be reported on Form 83-101, the Mississippi Individual Income Tax Return. Self-employed individuals will also need to calculate and pay estimated taxes quarterly if they anticipate owing $500 or more in state income tax. Mississippi does not have a separate self-employment tax like the federal government; however, the federal self-employment tax still applies. It's important to keep accurate records of all income and expenses related to your Instacart work to ensure accurate tax filing. The Mississippi Department of Revenue offers resources and guidance for self-employed individuals, including information on estimated tax payments and available deductions. Failure to file and pay taxes on time can result in penalties and interest charges, so proactive tax planning is essential for Mississippi Instacart shoppers. Remember to consult the latest Mississippi Department of Revenue publications for the most up-to-date information, as tax laws can change.

Top Tax Deductions for Mississippi Drivers

• Standard Mileage: The most popular deduction for Instacart shoppers. The 2025 rate is 70 cents per mile. Given Mississippi’s generally moderate gas prices, the standard mileage rate is likely to be a beneficial option for most drivers.
• Tolls & Parking: While Mississippi doesn’t have extensive toll road systems, any tolls incurred while actively shopping or delivering are deductible. Parking fees directly related to deliveries are also deductible.
• Phone & Data Plan: The portion of your monthly phone and data plan used for Instacart work is deductible. Keep a log of business use to accurately calculate the deductible percentage.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, and insulated hot/cold 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

The 15.3% self-employment tax covers 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 of these taxes. This tax is calculated on your net earnings (income minus business expenses) exceeding $400. Paying estimated taxes quarterly can help avoid penalties at tax time.

For more information on Mississippi state taxes, please visit the Mississippi Department of Revenue.