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Tips make up almost half of what Instacart shoppers earn, and in 2026 that changes the tax math. In Solo data, the average Instacart order paid $5.97 in base pay plus a $5.08 tip, so tips were 45.6% of pay per order. A new federal deduction for tips, plus mileage and the everyday costs of shopping, can cut a full-service shopper's tax bill substantially.
Here's what Instacart shoppers can deduct in 2026, using data from Solo (worksolo.com), the earnings, mileage and tax app used by 1M+ gig workers. Download Solo to track your tips, miles and expenses automatically.
Who can claim Instacart deductions
Full-service shoppers, who shop and deliver orders, are independent contractors. Instacart doesn't withhold taxes from their pay, and they report income and expenses on Schedule C. In-store shoppers are W-2 employees with taxes withheld, so the deductions in this guide don't apply to them.
Instacart delivers 1099-NEC forms through the Shopper app. For 2026, you'll get one if Instacart paid you at least $2,000, up from $600 in past years. Every dollar is taxable either way. Our guide to 1099 taxes for gig workers covers how to file.
Instacart shoppers averaged $16.04 per hour on the job in 2026, up 4.0% from 2025. See how that compares in our ranking of gig apps by hourly pay.
The new tip deduction for Instacart shoppers
The One Big Beautiful Bill Act created a deduction of up to $25,000 a year for qualified tips, available for tax years 2025 through 2028. Goods delivery people are on the Treasury's list of qualifying occupations, and with tips at 45.6% of pay per order, few gig workers have more to gain than Instacart shoppers.
- Only voluntary tips count. Tips customers add by choice qualify; service fees don't.
- It lowers income tax only. You still pay self-employment tax on your tips.
- It has limits. For self-employed workers, the deduction can't exceed your net profit from the work, and it phases out at higher incomes.
- The IRS is still finalizing the rules. Confirm your eligibility with a tax professional or your tax software.
Your 2026 1099-NEC includes new fields for tips, but your own records of tips make the deduction much easier to claim and support.
Mileage: the deduction most shoppers underclaim
Full-time Instacart shoppers logged an average of 8,499 work miles from January through August 2026, across all the apps they work, according to Solo data. At 2026 rates, that's roughly $6,200 in potential deductions.
Driving to the store, from the store to each customer, and between batches all count. The IRS rate is 72.5 cents per mile for January through June 2026 and 76 cents per mile from July 1 (IRS Announcement 2026-11). Read more about the 2026 mid-year mileage rate increase.
The standard rate usually beats deducting actual car costs. Drivers who log car expenses in Solo recorded about 16.3 cents per mile in car costs in 2026, a fraction of the 72.5 to 76 cents the standard rate allows. Logged costs leave out depreciation, so true costs run higher, but most shoppers still come out ahead with the standard rate.
Other Instacart shopper deductions
Insulated bags and shopping gear
Insulated bags, coolers, a folding cart and other gear you buy to shop and deliver orders are deductible.
Phone and data
The Shopper app runs on your phone, so deduct the business share of your phone bill, plus a mount and car charger.
Parking and tolls
Parking fees and tolls you pay while shopping or delivering are deductible on top of the standard mileage rate.
Apps and subscriptions
Mileage trackers and tax software you use for your gig work are deductible, including a Solo subscription.
Half of your self-employment tax and the QBI deduction
You can deduct half of your self-employment tax when calculating income tax, and many shoppers can also deduct up to 20% of their qualified business income.
For a longer list, see what expenses delivery drivers can claim.
What Instacart shoppers can't deduct
- Customers' groceries. You pay for orders with the Instacart payment card, not your own money.
- Gas and repairs, if you use the standard rate. Those costs are built into the per-mile rate.
- Personal shopping trips. Miles and purchases for yourself don't count, even if you stop at the same store.
What deductions save an Instacart shopper: an example
Here's how mileage and the tip deduction work together for a full-service shopper who earns $28,000 in 2026 and drives 10,000 business miles.
The tip deduction alone could save this shopper about $1,532 in federal income tax, on top of what mileage saves in both income and self-employment tax. Your result depends on your bracket and on how the IRS finalizes the tip rules.
How Solo helps Instacart shoppers keep more
- Earnings tracking separates base pay and tips, so you know exactly how much of your income may qualify for the tip deduction.
- Mileage Tracker logs every trip to the store and the customer automatically.
- Tax Hub estimates your quarterly taxes as you earn and helps you file at year-end.
See how Solo works for Instacart shoppers. Download Solo and try any paid plan free for 7 days.
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