Instacart Tax Calculator — Taxes for Instacart Shoppers
By Sanjeet Singh, CPA
Instacart shoppers are independent contractors, which means no tax withholding on your batch payments, tips, or peak boosts. You'll owe self-employment tax (15.3%) plus income tax on your net earnings after deductions. Instacart shoppers can deduct mileage ($0.70/mile for 2025), insulated bags, phone expenses, and other shopping-related costs. Enter your Instacart earnings below to see your tax estimate and quarterly payment.
Filing Info
Income
$0.70/mile (2025 IRS rate)
Estimated Total Tax
$1,922
Effective rate: 14.1%
Quarterly Payment
$480
Tax Breakdown
As an Instacart shopper, all your earnings — batch payments, tips, peak boosts, and bonuses — are self-employment income subject to self-employment tax (15.3%) plus federal and state income tax. Instacart does not withhold any taxes from your pay.
Mileage is your biggest deduction. Deductible miles include driving from store to customer, driving between batches, and driving to the store for pickup. The 2025 IRS rate is $0.70 per mile. A full-service shopper driving 12,000 miles per year claims $8,400 in deductions.
Other deductions include insulated bags and coolers, phone and data plan (business percentage), comfortable shoes (if used exclusively for shopping), hand sanitizer and PPE, and parking fees. Keep receipts and track your business use percentage.
Frequently Asked Questions
Are Instacart tips taxable?
Yes. Tips are part of your self-employment income and must be reported, even if Instacart doesn't include them on your 1099-K. The IRS considers all tips — cash and in-app — taxable income subject to both self-employment tax and income tax.
Does Instacart withhold taxes?
No. Instacart pays you the full amount with zero tax withholding. You are responsible for calculating and paying your own taxes, including quarterly estimated payments.
Can I deduct miles from store to customer?
Yes. All miles driven for Instacart business purposes are deductible — from driving to the store, shopping, and delivering to the customer, plus driving between batches.
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