As a full-service shopper you're an independent contractor, so Instacart doesn't take tax out of your pay. You owe income tax and self-employment tax on your profit, and the biggest thing that lowers it is the miles you drive. If Instacart pays you as an employee on a W-2, this guide doesn't apply to you. Gigstrak isn't affiliated with Instacart.
The form Instacart sends
Full-service shoppers get a Form 1099-NEC. For payments made in 2026, it's sent when Instacart paid you $2,000 or more in the year (it was $600 before). Your tips are part of your total pay, and for 2026 the form also has a box for them (box 1b). Forms are due by January 31. Check the Shopper app and your email. Even with no form, all of your Instacart income is taxable. More on this in 1099 forms for gig drivers.
What you'll owe
- Self-employment tax: 15.3% of most of your net profit, for Social Security and Medicare. It applies once your profit from all self-employment is $400 or more.
- Income tax on your profit, at your normal rate, along with any other income you have.
Your profit is what Instacart paid you minus your business costs, reported on Schedule C. Our quarterly tax calculator gives a quick estimate.
Mileage is the big deduction
Most shoppers can use the IRS standard mileage rate: 72.5¢ a mile for business miles driven through June 30, 2026, and 76¢ from July 1. At those rates, 10,000 business miles is worth over $7,000 off your profit. The rate covers gas, repairs, insurance and wear, so you can't deduct those on top of it. See the 2026 mileage rate.
- Count the miles you drive for work: to the store, to each customer, and between batches while you're online.
- Leave out personal driving. If you're not sure about the drive from home to your first store, ask a tax professional.
- Keep a log as you go. The IRS expects a record of the date, miles and purpose of each trip, made at the time.
Other costs you can deduct
The business share of your phone and plan, insulated bags, and parking and tolls on orders. See the full list of deductions for gig drivers.
Tips
Tips are taxable income, but for 2025 through 2028 you may be able to deduct up to $25,000 of them from income tax. From 2026, only tips reported in the tips box of your 1099-NEC count, and the form also lists an occupation code for them. If one of the codes is 000, some of those tips don't qualify. Self-employment tax still applies to tips. See no tax on tips for drivers.
Pay during the year
If you'll owe $1,000 or more, the IRS expects quarterly payments. The last one for 2026 income is due January 15, 2027. Setting aside 20 to 25% of each payout is a common starting point. See quarterly estimated taxes.
Track it without thinking about it
Gigstrak records your shopping miles automatically, values each one at the IRS rate for its date, and shows what to set aside for taxes. Get Gigstrak on Google Play.
Sources
IRS: Instructions for Forms 1099-MISC and 1099-NEC, Self-employment tax, Publication 463 (car expenses and records) and Announcement 2026-11 (the July 1 rate). Which form you get depends on how Instacart pays you, so check the tax documents in your Shopper account. This guide is general information, not tax advice.