Updated for 2026

Instacart Tax Calculator

Full-service Instacart shoppers are independent contractors and pay their own taxes. (In-store shoppers are employees and have tax withheld instead.) On $28,000 of earnings and 12,000 miles, that means setting aside about $2,704 for federal tax in 2026.

Your 1099 income

Mileage deduction: $8,912

I also have a W-2 job

Set aside about

10% of your earnings

$2,704 total tax on $18,588 net profit

Self-employment tax $2,626
Federal income tax $78
State & local income tax $0
Includes a QBI deduction of $400
Tax on your 1099 income $2,704

Quarterly estimated payments

  1. Apr 15, 2026 $676 to the IRS
  2. Jun 15, 2026 $676 to the IRS
  3. Sep 15, 2026 $676 to the IRS
  4. Jan 15, 2027 $676 to the IRS

Federal tax bracket 10%. Paying at least 100% of last year’s total tax in quarterly installments (110% if your income was over $150,000) protects you from IRS underpayment penalties.

How much to set aside from Instacart pay

You earn per week Set aside per week Share of earnings
$300 $28 9%
$500 $47 9%
$800 $90 11%
$1,200 $149 12%

Federal self-employment and income tax for a single filer with no other job, driving about 43 business miles per $100 earned. Add state tax where it applies.

How the tax on $28,000 of Instacart pay works out

  1. Start with your profit. $28,000 of earnings, minus $8,912 for 12,000 business miles, minus $500 of other costs, leaves $18,588.
  2. Self-employment tax. Social Security and Medicare on that profit come to $2,626.
  3. Federal income tax. After half of that tax, the standard deduction and the $400 QBI deduction, $775 is taxable, which comes to $78.
  4. Set aside the total. $2,704 a year, or about $676 a quarter, plus any state income tax.

Instacart tax forms

Instacart sends full-service shoppers a Form 1099-NEC (through Stripe) if they earn $2,000 or more in 2026.

What Instacart shoppers can deduct

  • Miles driven to stores and customers while on batches
  • Insulated and grocery bags
  • Your phone and data plan (the business share)
  • Parking fees and tolls

For 2026 the IRS standard mileage rate is 72.5¢ a mile until June 30 and 76¢ from July 1, about 74.3¢ on average. At that rate, every 1,000 business miles cuts your taxable profit by about $743.

Good to know

  • Tips from customers are taxable income.
  • If you’re an in-store shopper you get a W-2; use the paycheck calculator instead.
  • Track miles from the moment you head to the store, not only after you pick up the order.

Frequently asked questions

How much should I set aside for taxes from Instacart?

For federal tax, Instacart shoppers typically need to set aside about 9% to 12% of what they earn, depending on how much they make and drive, plus more in states with an income tax. For example, $28,000 of Instacart earnings with 12,000 business miles works out to about $2,704 of federal tax in 2026, or 10% of earnings.

Do I have to pay taxes on Instacart if I made less than $2,000?

Yes. The $2,000 limit only decides whether Instacart has to send you a 1099-NEC. All your earnings are taxable, and you owe self-employment tax once your net profit reaches about $433.

Can Instacart shoppers deduct gas?

Not if you use the standard mileage rate, which most drivers do: the 74.3¢ average rate for 2026 already covers gas, maintenance, insurance and depreciation. You can deduct actual car costs instead, but then you can’t use the mileage rate for that car.

Other gig work

Have income from several apps? Add it all up in the 1099 tax calculator, or see just your Social Security and Medicare with the self-employment tax calculator.

Sources

Estimates only, not tax advice. WageSimply isn’t affiliated with Instacart. Your actual tax depends on your full return.

Built and checked by the WageSimply team, led by Engr. Zakir, an engineer and Google-certified data analyst. Updated for the 2026 tax year and last reviewed .