Instacart Shopper Taxes in Ohio - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Ohio

Navigating the bustling grocery scene as an Instacart shopper in Ohio offers flexibility, but it also comes with 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, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is crucial for a smooth tax filing process.

How Ohio Handles Gig Worker Taxes

As a resident of Ohio, a state income tax return is required, regardless of income level. Ohio utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Ohio’s tax brackets are subject to annual adjustments, but understanding the system is vital for accurate filing. Instacart shoppers will report their self-employment income on Ohio Form IT-1040, and will likely need to include Schedule SE (Self-Employment Tax) with their federal return to calculate the amount of self-employment tax owed. Ohio also allows for various deductions and credits that can reduce your overall tax liability. It's important to note that Ohio does not have a separate tax form specifically for gig workers; self-employment income is integrated into the standard individual income tax return. Ohio also offers a small business tax credit, which may be applicable depending on your business structure and expenses. Staying informed about changes to Ohio’s tax laws is recommended, as they can impact your tax obligations. You can find comprehensive information and resources on the Ohio Department of Taxation website: https://tax.ohio.gov/

Top Tax Deductions for Ohio Drivers

• Standard Mileage: The most popular deduction for Instacart shoppers. The 2025 rate is 70 cents per mile. Given Ohio's diverse terrain and potential for significant mileage across cities like Columbus, Cleveland, and Cincinnati, this rate can add up to substantial savings.
• Tolls & Parking: Ohio has toll roads, particularly around the Ohio Turnpike. Keep detailed records of all toll expenses and parking fees incurred while actively shopping and delivering.
• Phone & Data Plan: The portion of your monthly 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 washes to maintain a professional appearance, phone mounts for safe navigation, and insulated hot bags for food delivery are all potentially deductible 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

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 quarterly tax payments to the IRS. Failing to do so can result in penalties.