Instacart shopping is one of the most popular side hustles in the US right now. Flexible hours, no boss, and decent pay per batch make it attractive for millions of people. However, the question most new shoppers ask after their first tax season is whether it is actually worth it once the IRS takes its share. The short answer is yes — but only if you understand how the taxes work and take advantage of every deduction available to you. As an Instacart shopper you are classified as an independent contractor. This means Instacart never withholds a dollar of tax from your earnings. Instead, you owe self-employment tax at 15.3% of your net profit plus federal and state income tax on top. For most shoppers this adds up to 20 to 30% of their net earnings depending on their state and filing status. The deductions are where things get interesting. Mileage is the biggest one — at $0.70 per mile in 2026 a shopper who drives 8,000 miles per year saves $5,600 in taxable income. That single deduction can cut a tax bill by $800 to $1,200 depending on the bracket. On top of mileage, insulated bags, phone expenses, and parking fees are all fully deductible. To find out exactly what you owe after all deductions, try the free Instacart tax calculator at FreelancerTaxCalc.com. Enter your annual earnings, business miles, state, and filing status and get your full 2026 estimate in seconds. With proper deduction tracking most Instacart shoppers find their effective tax rate is much lower than they expected — and the gig becomes very much worth it.