Instacart Taxes Explained for Shoppers (2026)
Skip the mathInstacart tax calculator 2026Full-service Instacart shoppers are independent contractors. Instacart pays your batch pay and tips in full and takes out no tax. You pay self-employment tax and income tax yourself. (If Instacart gave you a W-2, you were an employee and tax was withheld. This guide is for 1099 shoppers.)
The short answer: a shopper who earned $22,000 in 2026, including $7,000 in tips, and drove 12,000 miles for batches owes about $1,793 in federal tax. That is about 8 % of what Instacart paid. Without the mileage deduction it would be about $3,052.
The 1099-NEC from Instacart
For payments made in 2026, a 1099-NEC is required when a company paid you $2,000 or more. The limit used to be $600. Look for it in your shopper account or email by early February.
You report all your Instacart earnings on Schedule C, with or without the form.
The mileage deduction
Driving to the store for a batch and on to the customer are business miles. For 2026 the IRS rate is:
- 72.5¢ a mile from January 1 to June 30
- 76¢ a mile from July 1 to December 31
Keep a log with the date, miles and purpose of each trip. The rate covers gas, repairs, insurance and depreciation, so you do not deduct those on top.
Tips
Tips are income for self-employment tax. From 2025 through 2028, workers in tipped occupations can deduct up to $25,000 of qualified tips from income tax. The IRS final list includes app-based delivery, and the tips have to be included on the form the app sends you.
Other deductions for shoppers
- Business share of your phone and data plan
- Insulated bags and coolers
- Parking while on a batch
- Hand trucks or other gear you buy for orders
Example: $22,000 from Instacart
Single, no other income, 2026 figures:
| Step | Amount |
|---|---|
| Batch pay and tips (with $7,000 tips) | $22,000 |
| Mileage: 6,000 mi x 72.5¢ + 6,000 mi x 76¢ | -$8,910 |
| Phone and bags | -$400 |
| Profit | $12,690 |
| Self-employment tax | $1,793 |
| Income tax | $0 |
| Total federal tax | $1,793 |
Income tax is zero here because the profit after the deduction for half of SE tax is below the $16,100 standard deduction. You still owe the self-employment tax. Run your own numbers in the Instacart tax calculator.
Quarterly payments
Nothing is withheld, so the IRS expects estimated payments if you will owe $1,000 or more for the year. The 2026 dates are April 15, June 15 and September 15, 2026, and January 15, 2027. More on the tax itself in what is self-employment tax.
Questions
What is the Instacart address for taxes?
You do not need it for your own return. You report Instacart pay on Schedule C. The payer's details are printed on the 1099-NEC if you get one.
Do I pay taxes on Instacart tips?
Yes, tips are income and count for self-employment tax. The 2025-2028 tips deduction can lower your income tax if your work is on the IRS list of tipped occupations, which includes app-based delivery, and the tips are on the form the app sends.
I earned only a little on Instacart. Do I still file?
If your net earnings from self-employment are $400 or more, you owe self-employment tax and need to file. Below that, you may still have to report the income for income tax.