Instacart Shopper Taxes in Pennsylvania - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Pennsylvania

Navigating the bustling streets of Philadelphia, Pittsburgh, or Allentown as an Instacart shopper offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from Instacart are considered self-employment income, requiring diligent record-keeping and accurate tax filing.

The IRS requires all individuals earning $400 or more as a self-employed individual to report their income on Schedule C (Profit or Loss from Business) with Form 1040. Furthermore, this income is subject to self-employment tax, which covers both Social Security and Medicare taxes. Unlike traditional employment, Instacart and other gig platforms do not withhold these taxes, meaning it’s the shopper’s responsibility to calculate and pay them.

How Pennsylvania Handles Gig Worker Taxes

As a resident of Pennsylvania, filing a state income tax return is mandatory, even if no federal tax is owed. Pennsylvania operates under a flat income tax rate, currently at 3.07%. This applies to all taxable income, including earnings from Instacart. Self-employed individuals in Pennsylvania must report their income and calculate their tax liability using Pennsylvania Form REV-65, the Pennsylvania Resident Income Tax Return. This form requires reporting net profits from Schedule C as part of your overall income. Pennsylvania also allows for itemized deductions, which may further reduce your taxable income. It's important to note that Pennsylvania does not have a separate self-employment tax like the federal government; however, the federal self-employment tax still applies. Pennsylvania also offers credits and deductions that may be beneficial to self-employed individuals, such as the Pennsylvania Tax Credit for Qualified Expenses. Staying informed about these changes and utilizing available resources is crucial for accurate tax filing. For the most up-to-date information and forms, please visit the Pennsylvania Department of Revenue website: https://www.revenue.pa.gov/.

Top Tax Deductions for Pennsylvania Drivers

• Standard Mileage: The most popular deduction for Instacart shoppers. The 2025 rate is 70 cents per mile. Given Pennsylvania's diverse terrain and potential for significant mileage, especially in rural areas, this rate can result in substantial savings.
• Tolls & Parking: Pennsylvania has a robust toll system, including the Pennsylvania Turnpike. Keep detailed records of all toll expenses and parking fees incurred while actively shopping or 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, phone mounts, insulated bags (hot bags/coolers), 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, 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 comprises two components: 12.4% for Social Security and 2.9% for Medicare. Because Instacart doesn’t withhold these taxes, it’s crucial to calculate and pay them quarterly using Form 1040-ES to avoid penalties. This tax is calculated on your net earnings – your income after deducting business expenses.