Instacart Shopper Taxes in New Hampshire - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in New Hampshire

Navigating the scenic routes of the Granite State as an Instacart shopper offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from Instacart are subject to both 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. Accurate record-keeping throughout the year is vital for a smooth tax filing process.

How New Hampshire Handles Gig Worker Taxes

New Hampshire is unique in that it does not have a broad-based income tax. This means there is no state income tax to file on your Instacart earnings. However, this does not exempt Instacart shoppers from federal tax obligations. The lack of state income tax often leads New Hampshire residents to focus less on tax planning, but diligent federal compliance remains essential. Furthermore, New Hampshire does have taxes on interest and dividends, but these are generally not applicable to Instacart earnings. The state's business tax structure, the Business Profits Tax (BPT) and the Business Enterprise Tax (BET), generally doesn't apply to independent contractors like Instacart shoppers unless they operate as a formal business entity (like an LLC) with significant revenue. It's important to note that New Hampshire's favorable tax climate doesn't negate the need to accurately report and pay federal taxes. Many New Hampshire residents enjoy the benefits of living in a tax-friendly state, but responsible tax filing is still paramount. For more information on New Hampshire's tax laws, please visit the New Hampshire Department of Revenue Administration: https://www.revenue.nh.gov/

Top Tax Deductions for New Hampshire 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 New Hampshire's relatively stable gas prices compared to some states, the standard mileage rate is often a very advantageous option.
• Tolls & Parking: New Hampshire has minimal toll roads, but any tolls incurred during deliveries are deductible. Parking fees directly related to Instacart deliveries are also deductible.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for business purposes. Keep a log of business usage to support your deduction.
• Vehicle-Related Costs: Expenses like car washes (to maintain a professional appearance), phone mounts, insulated hot/cold bags, and dash cams used for safety are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, or repairs) 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. 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.