2026 tax year · Instacart shoppers
How much to set aside for taxes on Instacart
Full-service Instacart shoppers are independent contractors. Instacart doesn't withhold tax, so every batch payout is pre-tax money — part of it belongs to the IRS.
In the worked example below, an Instacart shopper in Georgia should set aside 14% of every payout — $14 of every $100.
Set aside from every deposit
14%
≈ per year / per month
$3,360
$280/mo
Rule of thumb: for every $1,000 you earn, set aside $140.
An estimate for planning purposes, not tax advice or a filing. Uses 2026 federal brackets (Rev. Proc. 2025-32), self-employment tax with the §199A (QBI) deduction, and state-level rates (Tax Foundation, 2026). Married-filing-separately filers should use "Single" as the closest estimate. Local income taxes (e.g. NYC, Ohio municipal) aren't modeled and would owe more than shown.
Which tax forms Instacart sends
| Form | What it reports | Threshold (2026) |
|---|---|---|
| 1099-NEC | Batch pay, tips and bonuses, delivered in the Shopper app | $2,000 or more for 2026 payments ($600 for 2025 and earlier) |
- Since the 2023 tax year, Instacart delivers the 1099-NEC in the Shopper app rather than through Stripe Express — if you're looking in Stripe, you won't find recent years.
- Grocery runs mean short hops and waiting in parking lots; log the miles from the store to each drop-off and back, because they add up faster than most shoppers expect.
The form is paperwork, not the trigger: the IRS is explicit that you must report all income whether or not you receive a 1099.
Worked example: an Instacart shopper in Georgia
Hypothetical numbers, single filer, 2026 brackets. The calculator above is preloaded with them.
| Amount | |
|---|---|
| Instacart pay including tips | $24,000 |
| Mileage: 9,000 miles (half at 72.5¢, half at 76¢) | − $6,683 |
| Insulated bags & supplies | − $120 |
| Phone & data (business share) | − $420 |
| Net profit | $16,777 |
| Self-employment tax | $2,371 |
| Federal income tax | $0 |
| Georgia income tax | $871 |
| Set aside | 14% of income · $280/mo |
Skipping the deductions would push the set-aside to 21% — tracking them is worth about $1,680 a year here. See Georgia's self-employment tax breakdown for how the state part is figured.
Deductions instacart shoppers commonly claim
- Business miles at the IRS standard rate
- Insulated bags, coolers and a phone mount
- Parking fees at stores and drop-offs
- The business-use share of your phone and data plan
For 2026 the IRS standard mileage rate is 72.5¢ per mile through June 30 and 76¢ per mile from July 1. The standard rate stands in for gas, maintenance, insurance and depreciation, so you can't also deduct those — but parking and tolls are separate. You can use actual expenses instead; either way, keep a mileage log.
Tips: under the One, Big, Beautiful Bill Act, qualified tips are deductible from income tax for 2025–2028 (up to $25,000, limited to your net profit). They still count for self-employment tax.
When to pay
The next federal estimated payment is due January 15, 2027 and covers income from Sep 1 – Dec 31, 2026.
| Due date | Covers income earned | Payment |
|---|---|---|
| Sep 1 – Dec 31, 2026 | 4th payment for 2026 | |
| Jan 1 – Mar 31, 2027 | 1st payment for 2027 — also the 2026 return deadline | |
| Apr 1 – May 31, 2027 | 2nd payment for 2027 | |
| Jun 1 – Aug 31, 2027 | 3rd payment for 2027 |
Instacart taxes by state
Your state changes the answer. Pick yours for a calculator preset to its 2026 brackets:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Other platforms
Frequently asked questions
How much should I set aside for taxes on Instacart?
It depends on your profit, filing status and state. In the example on this page — an Instacart shopper in Georgia with $24,000 of income and $7,223 of deductions — the answer is about 14% of every payout, or $280 a month. Without tracking those deductions it would be 21%. Enter your own numbers in the calculator above.
Will Instacart send me a 1099?
Form 1099-NEC (batch pay, tips and bonuses, delivered in the Shopper app): $2,000 or more for 2026 payments ($600 for 2025 and earlier). Whether or not a form arrives, the IRS requires you to report all of the income.
Does Instacart take taxes out of my pay?
No. Instacart shoppers are paid as independent contractors, so no income tax or self-employment tax is withheld. You cover it yourself with quarterly estimated payments — the next federal one is due January 15, 2027.
What mileage rate can instacart shoppers deduct for 2026?
The IRS standard mileage rate for business driving is 72.5¢ per mile for January 1 – June 30, 2026 and 76¢ per mile for July 1 – December 31, 2026, after a mid-year increase for fuel prices. Keep a log of business miles with dates and purposes.
Are my Instacart tips tax-free now?
Partly. For 2025 through 2028, qualifying tips can be deducted from income tax — up to $25,000 a year, and for the self-employed no more than your net profit from the work. Tips still owe self-employment tax, and the deduction phases out at higher incomes. The calculator on this page doesn't apply it, so it slightly overstates income tax if you earn tips.
Do I have to pay quarterly taxes on Instacart income?
If you expect to owe $1,000 or more in federal tax for the year after withholding and credits, the IRS expects quarterly estimated payments. Paying too little, too late can mean an underpayment penalty even if you pay in full in April.
Know what to set aside from every Instacart payout
Confirm a Instacart deposit and Fern tracks what to set aside for tax on it — then shows what's safe to spend. Your money stays in your own bank account.
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Sources
Not tax advice. Fern provides estimates for planning a savings target; it doesn't file returns or replace a tax professional. Figures use 2026 federal brackets and standard deduction (IRS Rev. Proc. 2025-32 as amended by OBBBA), 2026 self-employment tax with the §199A deduction, and 2026 state rates (Tax Foundation). Instacart is a trademark of its owner; Fern isn't affiliated with or endorsed by Instacart. Examples are hypothetical.