Gig Tax Guide
Instacart Taxes: A Shopper's Guide
How you're taxed on Instacart depends on your role. Full-service shoppers — who shop and deliver — are independent contractors responsible for their own taxes, while in-store-only shoppers are part-time employees with taxes withheld. This guide is for full-service shoppers, who make up most of the platform.
How Instacart taxes work
You're an independent contractor
No taxes are withheld from your pay. You owe federal and state income tax plus self-employment tax on your net earnings.
Self-employment tax is 15.3%
That's 12.4% Social Security + 2.9% Medicare on your net earnings — on top of regular income tax. It funds the benefits an employer would normally split with you.
Deductions lower your taxable income
Business expenses — equipment, software, supplies, phone, and mileage — reduce the net earnings you're taxed on. Tracked properly, they often save more than any other single move.
You pay as you go, quarterly
Instead of one April bill, the IRS expects estimated payments four times a year. Paying quarterly avoids an underpayment penalty.
Do Instacart shoppers get a 1099?
Full-service shoppers who earned $600 or more receive a 1099-NEC reporting their nonemployee compensation. Instacart delivers these (typically through Stripe) by the end of January.
In-store shoppers are W-2 part-time employees — Instacart withholds their taxes and issues a W-2 instead. If you do both, you may receive both forms. As always, report all income even if a form doesn't arrive.
What full-service shoppers can deduct
Business mileage
Every mile driven while online or on a delivery, at the IRS standard mileage rate. Usually the single largest deduction.
Phone & data
The business-use percentage of your phone bill — you cannot work without it.
Tolls & parking
Tolls and parking paid while working are fully deductible (commuting tolls are not).
Hot bags & equipment
Insulated bags, phone mounts, chargers, and other gear bought for the work.
Insulated bags & coolers
Cooler bags and equipment you buy to keep groceries fresh are deductible.
You can deduct the IRS standard mileage rate or your actual vehicle expenses — not both. For most drivers the standard mileage rate is simpler and larger. Keep a contemporaneous mileage log either way.
Frequently asked questions
Are Instacart shoppers independent contractors?
Full-service shoppers are independent contractors and pay their own taxes. In-store-only shoppers are part-time W-2 employees with taxes withheld. This guide covers full-service shoppers.
Do I get a 1099 from Instacart?
Full-service shoppers who earned $600 or more get a 1099-NEC, usually delivered through Stripe by late January. Below that threshold you may not get a form but must still report the income.
How much should I set aside for Instacart taxes?
A common rule of thumb is to set aside 25–30% of your net earnings (what's left after mileage and other deductions) to cover self-employment tax (15.3%) plus federal and state income tax. Your exact rate depends on your total household income and state. Use the Tax Set-Aside calculator to get a number for your situation.
Can Instacart shoppers deduct mileage?
Yes. Full-service shoppers can deduct business mileage at the IRS standard mileage rate for miles driven while working — typically the largest deduction. Track every working mile, since Instacart doesn't report your mileage for you.
When do Instacart shoppers pay taxes?
Independent-contractor shoppers generally make quarterly estimated payments — around April 15, June 15, September 15, and January 15 — and file an annual return by April 15. Quarterly payments avoid an IRS underpayment penalty.
Authoritative IRS resources
Free calculators for full-service shoppers
Stop guessing what you owe
UnifyOne tracks your grocery shopping and delivery earnings, mileage, and tax set-aside automatically — so quarterly taxes are never a surprise.
This guide is educational information, not tax advice. Tax rules, thresholds, and the IRS standard mileage rate change yearly — confirm current figures with the IRS or a qualified tax professional for your situation.