Instacart Shopper Taxes in Virginia - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Virginia

Navigating the historic streets and bustling grocery stores as an Instacart shopper in Virginia offers flexibility, but also brings 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 typically 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, which are not automatically withheld from your Instacart payments.

How Virginia Handles Gig Worker Taxes

As a resident of Virginia, filing a state income tax return is mandatory, even if your federal tax liability is zero. Virginia operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Virginia utilizes Form 540, the Individual Income Tax Return, as the primary form for reporting income, including self-employment earnings. Instacart income reported on your federal Schedule C must also be included on your Virginia Form 540. Virginia also allows for a deduction for the federal income tax paid, which can help reduce your state tax liability. Additionally, Virginia offers various credits and deductions that may be applicable to self-employed individuals, such as those related to business expenses. It's crucial to accurately calculate and report your income to avoid penalties and ensure compliance with Virginia tax laws. Virginia also has a separate filing requirement for estimated taxes if you expect to owe more than $1,000 in state income tax. Failure to pay estimated taxes can result in underpayment penalties. For detailed information and resources, please visit the Virginia Department of Taxation website: Virginia Department of Taxation.

Top Tax Deductions for Virginia Drivers

• Standard Mileage: The most popular deduction for Instacart shoppers. The 2025 rate is 70 cents per mile. Given Virginia's diverse geography, from urban areas to rural routes, tracking mileage accurately is essential.
• Tolls & Parking: Virginia has several toll roads, including the Dulles Toll Road and parts of I-95. Keep detailed records of all toll expenses and parking fees incurred while actively shopping or delivering.
• Phone & Data Plan: The portion of your phone and data plan used for Instacart work is deductible. Maintain records demonstrating the business use percentage.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, and insulated hot/cold bags used for deliveries are all potentially deductible.

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 tax payments throughout the year, to avoid penalties at tax time.