How do Instacart shoppers pay taxes in 2026?

Full-service Instacart shoppers are 1099 contractors. They file Schedule C, pay self-employment tax (15.3%), and make quarterly estimated payments. In-store shoppers are W-2 employees with taxes withheld.

What is the Instacart 1099 threshold for 2026?

Instacart issues a 1099-NEC to full-service shoppers who earn over $600 in 2026. The form is sent by January 31, 2027. All earnings must be reported even if no 1099 is received.

Can Instacart shoppers deduct mileage?

Yes. Full-service shoppers can deduct mileage from the store to the customer at 72.5 cents/mile (2026 IRS rate). Track every mile with a mileage app — on 15,000 miles that is $10,050 in deductions.

Tax Guide · Updated 2026

Instacart Shopper Taxes 2026 — Complete Guide

2026 Tax Summary — Instacart Tax Guide 2026

Instacart pays via 1099-NEC — no tax is withheld. On $35,000 net income: approximately $4,950 SE tax + $2,800 federal income tax = $7,750 total tax. Quarterly estimated payment: $1,938. File Schedule C. Pay quarterly via IRS Direct Pay by April 15, June 16, September 15, January 15.

Instacart classifies shoppers as independent contractors — meaning you pay self-employment tax (15.3%) plus federal and state income tax. Here is everything you need to know for 2026.

KEY TAKEAWAYS

Instacart full-service shoppers on $35,000 net income owe approximately $7,750 in federal tax
2026 IRS mileage rate is 72.5¢/mile — track every mile to/from stores
Tips up to $25,000 are federally deductible under OBBBA 2026
Instacart sends 1099-NEC for full-service shoppers earning $2,000+ in 2026
Set aside 25–30% of every batch payment for quarterly estimated taxes

Self-employed individuals must pay estimated taxes quarterly if they expect to owe at least $1,000 in federal tax for the year.— IRS.gov — Self-Employed Tax Center