Instacart Shopper Taxes in Utah - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Utah

Navigating the Wasatch Front and delivering groceries through Instacart offers flexibility, but it also comes with tax responsibilities. As an independent contractor for Instacart in Utah, understanding these obligations is crucial for a smooth tax season.

The IRS considers income earned through Instacart as self-employment income. This means it must be reported on Schedule C (Profit or Loss From Business) when filing your federal income tax return. Furthermore, because no taxes are withheld from your Instacart earnings, you are responsible for paying self-employment taxes, which cover both Social Security and Medicare. This applies if your net earnings (income minus business expenses) exceed $400.

How Utah Handles Gig Worker Taxes

As a resident of Utah, you are required to file a state income tax return, even if your only income is from Instacart. Utah operates under a flat income tax rate, currently at 4.85% for the 2025 tax year. This means all taxable income is taxed at the same rate, regardless of income level. Instacart earnings are considered taxable income and must be reported on your Utah tax return. The primary form used for reporting self-employment income in Utah is Form TC-40, Individual Income Tax Return. You will likely also need Schedule A, Adjustments to Income, to report any applicable deductions. Utah also requires you to pay estimated taxes quarterly if you expect to owe $1,000 or more in state income tax. Failure to do so may result in penalties. The Utah State Tax Commission provides resources and tools to help you calculate and pay estimated taxes. Remember to keep accurate records of all income and expenses throughout the year to ensure accurate tax filing. Utah’s tax laws are subject to change, so staying informed through official sources is vital.

You can find more information and resources on the Utah State Tax Commission website: https://tax.utah.gov/

Top Tax Deductions for Utah Drivers

• Standard Mileage: The most popular deduction for Instacart shoppers. The 2025 rate is 70 cents per mile. Given Utah’s diverse geography, from urban areas to more rural routes, tracking mileage accurately is essential.
• Tolls & Parking: While Utah doesn't have extensive toll roads, 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 records of your usage to support this deduction.
• Vehicle-Related Costs: Expenses like car cleaning supplies, phone mounts, insulated hot/cold bags, and dash cams used for 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 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.