Instacart Shopper Taxes in Wyoming - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Wyoming

Navigating the wide-open roads of Wyoming as an Instacart shopper offers flexibility, but it also comes with tax responsibilities. As an independent contractor, earnings from Instacart are subject to federal and, while limited, state considerations.

The IRS requires all Instacart shoppers to report their income on Schedule C (Profit or Loss from Business) with Form 1040. Crucially, because no taxes are withheld from your Instacart payments, you are responsible for paying self-employment taxes – covering both Social Security and Medicare – on any net earnings exceeding $400. Proper record-keeping throughout the year is essential for accurate tax filing.

How Wyoming Handles Gig Worker Taxes

Wyoming is notably tax-friendly, particularly for individuals. The state boasts no state income tax, meaning you won’t file a state income tax return based on your Instacart earnings. However, this does not exempt you from federal tax obligations. The lack of state income tax can be a significant benefit, allowing Wyoming residents to retain a larger portion of their earnings. It's important to remember that while Wyoming doesn't tax income, federal requirements still apply, and accurate reporting is crucial to avoid penalties. Many Wyoming residents, particularly those in more rural areas, rely on gig work like Instacart to supplement income from ranching, tourism, or other seasonal employment. Therefore, understanding the federal tax implications is especially important. Furthermore, while Wyoming doesn't have a state income tax, business license requirements may apply depending on the county and city where you operate. Always check with your local county clerk's office for specific regulations. For more information on Wyoming's tax structure, visit the Wyoming Department of Revenue: Wyoming Department of Revenue.

Top Tax Deductions for Wyoming Drivers

• Standard Mileage: The most popular and often most beneficial deduction. For 2025, the standard mileage rate is 70 cents per mile. Given Wyoming’s vast distances and often challenging winter driving conditions, maximizing this deduction can significantly reduce your tax liability.
• Tolls & Parking: While Wyoming doesn't have extensive toll roads, any parking fees incurred directly while making deliveries are deductible.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for business purposes. Keep a log of business-related calls and data usage to support your deduction.
• Vehicle-Related Costs: Expenses like car cleaning supplies (especially important during Wyoming’s muddy seasons!), phone mounts, insulated hot/cold bags, and dash cams 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 covers both Social Security and Medicare taxes. Unlike traditional employment where your employer withholds these taxes, as an Instacart shopper, you are responsible for paying the full 15.3% on your net earnings exceeding $400. You'll calculate this tax when you file your federal income tax return.