Instacart Taxes: 1099-NEC, Mileage and Deductions for Shoppers
How Instacart shoppers are taxed in 2026, the difference between full-service and in-store shoppers, where to find your 1099, the mileage deduction and a worked example.
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Key takeaways
- Full-service shoppers (shop and deliver with their own car) are independent contractors: no withholding, 15.3% self-employment tax plus income tax on profit.
- In-store shoppers are W-2 employees: taxes are withheld and job expenses are generally not deductible.
- Instacart sends a 1099-NEC through the Shopper app if it paid you $2,000 or more in 2026 ($600 for 2025).
- Your biggest deduction is mileage: 72.5¢ per mile January–June 2026 and 76¢ from July 1.
Instacart shoppers do real work twice: shopping in the store and driving the order to the customer. For full-service shoppers, both count as running a small business. That means no taxes taken out of your batches, but valuable deductions. Here is how Instacart taxes work in 2026.
Please note
General information about US federal rules as of October 2026; not tax advice. Check your shopper type in your Instacart account if you are unsure.
Full-service vs. in-store shoppers
| Full-service shopper | In-store shopper | |
|---|---|---|
| Work | Shops and delivers with own car, chooses own hours | Shops only, scheduled shifts |
| Status | Independent contractor | Employee |
| Tax form | 1099-NEC | W-2 |
| Taxes withheld? | No | Yes |
| Self-employment tax | Yes, 15.3% on 92.35% of profit | No (employer splits payroll taxes) |
| Deduct mileage and costs? | Yes, on Schedule C | Generally no |
The rest of this guide is about full-service shoppers.
Your Instacart 1099
Instacart issues Form 1099-NEC to full-service shoppers it paid at least $600 for 2025 or $2,000 for payments made in 2026. Since the 2023 tax year, the form is delivered in the Shopper app (earlier years were in Stripe Express). Box 1 includes batch pay, promotions and customer tips paid through the app.
Below the threshold you get no form, but the income is still taxable; your earnings history in the app has the totals. The rules for all 1099 forms are in our 1099 tax guide.
The groceries are not your income. Money loaded onto the Instacart payment card to pay for customers' orders is not part of your earnings and not your expense.
Instacart shopper deductions
| Expense | Deductible? | Notes |
|---|---|---|
| Business miles | Yes | Standard rate or actual car costs |
| Insulated bags, coolers, crates | Yes | Used for orders |
| Phone and data plan | Business share | The app runs the whole job |
| Phone mount, power bank | Yes | Work equipment |
| Parking and tolls while working | Yes | In addition to the mileage rate |
| Instant cashout fees | Yes | Fees for early payouts |
| Car loan interest | Business share | Self-employed shoppers |
| Groceries you buy for yourself, clothing, fines | No | Personal costs |
Which miles count
Driving to the store after accepting a batch, from the store to the customer and between deliveries counts as business. Many tax professionals also treat miles driven while you are online and waiting for batches as business miles. The drive from home before you go online and back home at the end is usually commuting. Keep a log; the IRS rules are explained in our mileage deduction guide, which applies to every gig app.
Tips and the tips deduction
Customer tips are taxable income and subject to self-employment tax. Because delivery workers are on the IRS list of tipped occupations, full-service shoppers can deduct qualified tips up to $25,000 a year for income tax in 2025 through 2028, limited to their net profit and phased out above $150,000 of modified AGI ($300,000 joint).
Example: a part-time Instacart shopper
Example
A single shopper with no other job earns $15,000 in 2026, including $5,000 in tips, and drives 7,000 business miles (3,500 in each half of the year). Mileage deduction: 3,500 × $0.725 + 3,500 × $0.76 = $5,198. Bags, phone share and parking: $400. Net profit: $9,402. Self-employment tax: $1,328. Income tax: $0, because income after half of the SE tax ($8,738) is below the $16,100 standard deduction. The shopper owes $1,328, which is above $1,000, so quarterly payments are expected.
With a full-time job on top, the profit would also be subject to income tax at the job's bracket. How much to save for taxes walks through that calculation.
Quarterly taxes for shoppers
If you expect to owe $1,000 or more for the year, pay estimated taxes on April 15, June 15 and September 15, 2026, and January 15, 2027. Paying 100% of last year's tax (110% above $150,000 AGI) avoids penalties. Step by step: quarterly estimated taxes for gig workers.
Frequently asked questions
Does Instacart take out taxes?
Not for full-service shoppers, who are independent contractors. In-store shoppers are employees and have taxes withheld.
Where do I find my Instacart 1099?
In the Shopper app, for the 2023 tax year and later. Earlier forms were issued through Stripe Express.
How much should I save for Instacart taxes?
Roughly 15% of profit if Instacart is your only income, and 20% to 30% if you also have a job, plus state tax.
Can Instacart shoppers deduct mileage?
Yes, full-service shoppers can deduct business miles at the IRS rate or use actual car costs.
Do I need to file taxes if I made under $2,000 on Instacart?
Yes, if your net self-employment earnings are $400 or more, even without a 1099.
