May 28, 2026·10 min read

Instacart Taxes: The Complete 2024 Guide for Shoppers

Full-service Instacart shoppers are independent contractors, which means Instacart does not withhold a single dollar from your batch payments or tips. You owe federal income tax, state income tax, and 15.3% self-employment tax — and the IRS expects you to pay it in four quarterly installments, not all at once in April. This guide covers every form, deduction, and deadline an Instacart shopper needs in 2024, plus the exact percentage of each payout to set aside.

Does Instacart take out taxes?

No. Instacart does not withhold federal, state, Social Security, or Medicare taxes from full-service shopper earnings. Every dollar of batch pay, bonus, and tip lands in your account untaxed, and you are personally responsible for calculating what you owe and sending it to the IRS. (In-store shoppers are W-2 employees and DO have taxes withheld — this guide is for full-service 1099 shoppers.)

What tax forms will Instacart send?

Instacart issues 1099 forms through Stripe Express, typically available by January 31:

1099-NEC

Sent if you earned $600+ in batch pay and bonuses during the calendar year. This covers your core shopper income.

1099-K

Sent if your processed payments cross the IRS threshold. For tax year 2024 the federal threshold is $5,000; some states (MA, VT, VA, MD, IL) have lower thresholds as low as $600.

Earned under $600?

You still owe tax on every dollar. The 1099 threshold only controls whether Instacart files the paperwork — it never removes your filing obligation. Report the income on Schedule C anyway.

Deductions every Instacart shopper should claim

Deductions directly reduce both your income tax AND your 15.3% self-employment tax. Missing them is the most expensive mistake a shopper can make.

Mileage (the big one)

The IRS standard mileage rate for 2024 is 67¢ per business mile. This covers every mile from the moment you accept a batch until you drop off the last order — including driving between stores and back to a hot zone. Most shoppers drive 8,000–15,000 business miles a year, which is $5,360–$10,050 in deductions.

Phone and data

Deduct the business-use percentage of your phone bill, phone case, mounts, and chargers. If you use your phone 60% for Instacart, deduct 60% of the bill.

Hot/cold bags and supplies

Insulated bags, ice packs, hand sanitizer, masks, pens, and reusable shopping bags are 100% deductible.

Health insurance premiums

Self-employed shoppers can deduct 100% of premiums for themselves, spouse, and dependents above the line (no itemizing required).

Half of self-employment tax

The IRS lets you deduct half of your SE tax automatically — your tax software or our calculator handles this.

Retirement (SEP-IRA / Solo 401k)

Contributions reduce taxable income dollar-for-dollar. A SEP-IRA lets you stash up to 25% of net SE earnings.

Mileage tracking: the make-or-break rule

The IRS requires a contemporaneous mileage log — dates, miles, business purpose. Reconstructing it in April from memory is the #1 audit trigger for gig workers. Use an app that auto-tracks (Stride, Everlance, MileIQ, Hurdlr) and tag every drive immediately. Instacart's in-app mileage estimate is not IRS-acceptable on its own; it only covers active batch time, not driving to your hot zone.

How much to set aside for Instacart taxes

A practical rule for most full-service shoppers: set aside 25–30% of every net payout (gross batch pay minus the mileage deduction). The breakdown:

Self-employment tax

15.3% of 92.35% of net earnings — roughly 14.1% effective.

Federal income tax

10–22% for most shoppers depending on total household income and filing status.

State income tax

0% (TX, FL, WA, NV, TN, etc.) up to ~9% in CA, OR, NY, NJ. Run your state through the calculator.

Quarterly estimated taxes

If you expect to owe $1,000+ in federal tax, the IRS requires quarterly payments on Form 1040-ES. Skipping them means an underpayment penalty even if you pay the full balance in April. 2024–2025 due dates: April 15, June 17, September 16, and January 15. Pay free via IRS Direct Pay or EFTPS — never pay by card (processor fees wipe out any rewards).

How to file Instacart taxes step by step

Filing is mechanical once your numbers are clean:

1. Gather your 1099-NEC / 1099-K from Stripe Express

Plus your mileage log and expense receipts (digital is fine).

2. Fill out Schedule C

Report gross income, then subtract mileage and every other deduction. The result is your net profit.

3. Fill out Schedule SE

Calculates the 15.3% self-employment tax on your net profit.

4. Carry totals to Form 1040

Net profit hits line 8 (via Schedule 1); SE tax hits line 23. Software (TurboTax Self-Employed, FreeTaxUSA, H&R Block) handles all of this if you enter the 1099 once.

Frequently asked questions

+Does Instacart take out taxes for full-service shoppers?

No. Full-service shoppers are 1099 independent contractors. Instacart does not withhold federal, state, FICA, or Medicare taxes — you owe the full amount yourself.

+Does Instacart track mileage for taxes?

Instacart shows estimated active-batch miles in-app, but the IRS does not accept this alone. You need a contemporaneous log covering every business mile, including driving to and from your hot zone. Use Stride, Everlance, or Hurdlr.

+How much should I set aside for Instacart taxes?

Most full-service shoppers should set aside 25–30% of net pay (gross minus mileage deduction). Use a calculator to dial it in for your state and total income.

+What if I made less than $600 on Instacart?

You still owe tax on every dollar and must report the income on Schedule C. Instacart just isn't required to send you a 1099 — your filing obligation doesn't change.

+Can I claim Instacart on my taxes if it's a side hustle?

Yes. All Instacart income — full-time or side hustle — goes on Schedule C, and you can deduct mileage, phone, supplies, and other business expenses against it.

+How do I get my Instacart tax form?

Instacart issues 1099s through Stripe Express. You'll get an email invite in January to set up your Stripe Express account and download the form. If you don't see it by early February, contact Stripe Express support.