Instacart Shopper Taxes in Dallas, Texas - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Dallas, Texas

Navigating the bustling streets of Dallas as an Instacart shopper offers flexibility, but it also comes with tax responsibilities. As an independent contractor, earnings from deliveries throughout the Metroplex are considered self-employment income, requiring careful tax planning for the 2025 tax year.

The IRS requires all Instacart shoppers to report their income on Schedule C (Profit or Loss from Business) with Form 1040. Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare taxes, which are not automatically withheld from your Instacart payouts. Accurate record-keeping throughout the year is essential to ensure compliance and maximize potential deductions.

How Texas Handles Gig Worker Taxes

The big perk in the Lone Star State is no personal income tax. However, be aware of the Texas Franchise Tax. While it has a high threshold (over $1.2 million) that rarely applies to solo gig workers, it's a key part of the state's business tax structure. As an Instacart shopper operating in Dallas, you won’t face state income tax on your earnings, but maintaining accurate records of your business income and expenses is still vital for federal tax purposes. Consider the unique demands of delivering in Dallas – traffic congestion can impact mileage, and parking costs, especially in areas like Uptown or Deep Ellum, can add up. These parking expenses are potentially deductible (see section below). Furthermore, while Texas doesn’t have a state income tax, it’s important to understand that the lack of state withholding doesn’t negate your federal tax obligations. Staying organized with your earnings and expenses will streamline the filing process and help avoid potential penalties. The Texas Comptroller’s office provides resources for businesses, even those operating on a small scale.

You can find more information about Texas taxes at the Texas Comptroller of Public Accounts website.

Top Tax Deductions for Dallas, Texas Drivers

• Standard Mileage: The #1 deduction. The 2025 rate is 70 cents per mile. Given the relatively lower gas prices in Texas compared to states like California, the standard mileage rate is often the most advantageous method for Instacart shoppers in Dallas.
• Tolls & Parking: Dallas utilizes the TxTag system for toll roads. Keep detailed records of all toll expenses and parking fees incurred while actively shopping and delivering orders.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for business purposes. If you use your phone 75% for Instacart, you can deduct 75% of the bill.
• 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 larger deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax covers both Social Security and Medicare taxes. 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 at tax time.