Instacart Shopper Taxes in Nevada - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Nevada

Navigating the vibrant streets of Las Vegas and Reno as an Instacart shopper offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from Instacart are subject to federal and, while limited, state considerations.

The IRS requires all Instacart shoppers to report their income on Schedule C (Profit or Loss from Business) with 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 payouts.

How Nevada Handles Gig Worker Taxes

Nevada stands out as one of the few states with no state income tax. This means Instacart shoppers in Nevada won’t file a state income tax return. However, this does not exempt you from federal tax obligations. The lack of state income tax can be advantageous, but diligent federal tax planning remains essential. Nevada’s economic reliance on tourism and hospitality means a large portion of the workforce participates in the gig economy, and the state government is actively monitoring federal guidance regarding independent contractor classification. While Nevada doesn’t currently have specific gig worker tax rules beyond federal requirements, it’s prudent to stay informed about potential future changes. Furthermore, businesses operating in Nevada, including Instacart, may be subject to the Modified Business Tax (MBT), but this is the responsibility of Instacart as the platform, not the individual shopper. Remember, even without state income tax, accurate record-keeping of income and expenses is vital for a smooth tax filing process.

For more information on Nevada’s tax structure and business regulations, please visit the Nevada Department of Taxation.

Top Tax Deductions for Nevada 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 Nevada’s sprawling cities and reliance on personal vehicles, this deduction can significantly reduce taxable income.
• Tolls & Parking: While Nevada doesn’t have extensive toll roads, parking fees incurred while actively shopping or delivering are deductible. Keep receipts for parking at grocery stores or delivery locations.
• Phone & Data Plan: The portion of your cell phone and data plan used for Instacart work is deductible. Carefully track business usage to determine the deductible percentage.
• 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, insurance) in the same tax 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. Because Instacart and other gig platforms do not withhold these taxes from your earnings, it’s your responsibility to calculate and pay them through estimated tax payments throughout the year, or when you file your annual tax return. Failing to do so can result in penalties.