Instacart Shopper Taxes in South Carolina - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in South Carolina

Navigating the Palmetto State as an Instacart shopper offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from Instacart are considered self-employment income, requiring careful attention to both federal and South Carolina tax laws.

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 over $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions, which are not automatically withheld from your Instacart payouts.

How South Carolina Handles Gig Worker Taxes

As a resident of South Carolina, a state income tax return is required, even if no state income tax is ultimately due. South Carolina employs a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, it's crucial to understand how your Instacart earnings factor into this system. The primary form for self-employed individuals to report income and calculate South Carolina income tax is Form SC1040. You will likely also need Schedule SC-A to calculate your adjusted gross income. South Carolina also allows for itemized deductions, which could further reduce your tax liability. Keep meticulous records of all income and expenses related to your Instacart work. The South Carolina Department of Revenue offers resources and guidance for self-employed individuals; you can find more information at the South Carolina Department of Revenue website. Remember to pay attention to any changes in state tax laws that may occur before the filing deadline. South Carolina also offers various credits and deductions that may be applicable to your situation, so exploring these options is highly recommended.

Top Tax Deductions for South Carolina Drivers

• Standard Mileage: The most popular deduction for Instacart shoppers. The 2025 rate is 70 cents per mile. Given South Carolina's relatively moderate gas prices, the standard mileage rate is often a beneficial and simplified approach to deducting vehicle expenses.
• Tolls & Parking: While South Carolina doesn't have extensive toll road networks, any tolls incurred during deliveries are deductible. Parking fees directly related to Instacart deliveries are also deductible.
• Phone & Data Plan: If you use your phone for accepting orders, navigating, and communicating with customers, you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, and insulated hot 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 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 tax payments made quarterly to the IRS. Failing to do so can result in penalties.