Instacart Mileage Deduction: How to Track, Claim, and Save in 2025

The Instacart mileage deduction is one of the most valuable tax breaks available to shoppers. Since Instacart drivers are classified as independent contractors, they are responsible for paying their own taxes but can also deduct business-related expenses. The IRS standard mileage rate for 2025 is 70¢ per mile for business travel, which means every mile driven for Instacart can significantly lower taxable income. By tracking miles carefully and claiming the deduction correctly, shoppers can save hundreds or even thousands of dollars at tax time.

Why the Mileage Deduction Matters for Instacart Shoppers

Driving is the single biggest cost of working with Instacart. From picking up groceries to delivering them to customers’ doors, nearly every part of the job involves being on the road.

Key Benefits of Mileage Deduction

• Lower Taxable Income: Each mile driven reduces your taxable earnings.
   For example, 10,000 miles in 2025 = $7,000 deduction at the IRS rate.
• Offset Rising Gas Prices: Deductible mileage helps balance high fuel costs.
   Even when gas prices spike, the IRS rate accounts for vehicle expenses.
• Covers More Than Gas: The standard mileage rate includes maintenance, insurance, and depreciation.
   This provides a comprehensive deduction without endless receipts.
• Keeps Earnings Realistic: Tracking mileage shows your true net income.
   It prevents overestimating profits and helps you plan better.

How the Instacart Mileage Deduction Works

The IRS provides two methods to calculate vehicle expenses: the standard mileage rate or the actual expense method.

Standard Mileage Rate

• Easy to Use: Multiply miles by the 2025 business rate of 70¢.
   This keeps calculations simple and fast.
• Best for Simplicity: Great for shoppers who want fewer receipts and less paperwork.
• Widely Used: Most Instacart shoppers prefer this method because it’s straightforward.

Actual Expense Method

• Tracks Real Costs: Includes gas, insurance, repairs, and depreciation.
   This may lead to higher deductions if you drive an expensive or high-maintenance vehicle.
• Requires Records: Every expense must be documented and separated from personal use.
• More Complex: Ideal only if you’re very organized with receipts and tracking.

What Counts as Deductible Mileage for Instacart?

Not every mile you drive is deductible. The IRS only allows business-related miles.

Deductible Trips

• Driving to Pick Up Groceries: Travel from your location to the store counts.
   These trips are directly related to your work as an Instacart shopper.
• Delivery Miles: Driving from the store to the customer’s home.
   This is the most common type of Instacart mileage.
• Between Batches: If you accept back-to-back orders, travel between locations qualifies.
   The key is that the trip must be work-related.
• Shopping for Supplies: Trips to buy insulated bags or work-related materials.
   These expenses are business-related and deductible.

Non-Deductible Trips

• Commuting: Driving from home to your first store of the day.
   The IRS considers this personal commuting.
• Personal Errands: Stopping for groceries or visiting friends mid-shift.
   These are not work-related and can’t be deducted.
• Unlogged Miles: Any trips not recorded in a mileage log.
   If you don’t track them, you can’t deduct them.

How to Track Mileage for Instacart

Accurate tracking is essential for claiming deductions.

Mileage Log Essentials

• Date of Trip: Write down the exact date.
   Missing dates weaken your log and can lead to disallowed deductions.
• Purpose of Trip: Note whether it was for deliveries or supplies.
   IRS requires business purpose documentation.
• Start and End Points: Record addresses or identifiable locations.
   This shows where the trip began and ended.
• Total Miles: Calculate the exact number of miles driven.
   This total determines your deduction amount.

Tools to Simplify Tracking

• Everlance: Automates mileage logging and generates tax-ready reports.
   Perfect for Instacart shoppers who want a hands-off approach.
• MileIQ: Another popular mileage tracking app with automatic detection.
   Useful for logging both Instacart and personal trips separately.
• Manual Logs: A notebook or spreadsheet can still work.
   Just ensure details are complete and accurate.

Example of Instacart Mileage Deduction in 2025

Let’s break down a real-world scenario.

• Total miles driven for Instacart: 12,000
• IRS business rate (2025): 70¢ per mile
• Deduction = 12,000 × 70¢ = $8,400

If the shopper earned $28,000 in gross income, the mileage deduction reduces taxable income to $19,600. This can lead to thousands of dollars in tax savings depending on tax brackets.

Common Mistakes to Avoid with Instacart Mileage Deduction

Many shoppers lose money at tax time by making avoidable errors.

• Not Tracking Every Mile: Forgetting trips results in lost deductions.
   Missing just a few each week can cost hundreds annually.
• Mixing Personal and Business Miles: Failing to separate trips may raise IRS concerns.
   Only business-related miles are eligible.
• Guessing Totals: Estimating at the end of the year is risky.
   Without a proper log, deductions may be denied.
• Ignoring Other Expenses: Parking fees and tolls are deductible too.
   Many shoppers forget to add these costs alongside mileage.

Tips to Maximize Instacart Mileage Deduction

Smart tracking and planning make the deduction even more valuable.

• Start Odometer at Year’s Beginning: Record mileage on January 1.
   This helps confirm business vs. personal use percentages.
• Classify Trips Immediately: Don’t wait until tax season.
   Marking trips as business or personal daily avoids confusion later.
• Plan Routes Efficiently: Minimize personal driving during shifts.
   Higher business-use percentage means greater deductions.
• Use Technology: Mileage apps reduce stress and prevent lost logs.
   Automation makes tracking effortless and reliable.
• Review Monthly Reports: Check for accuracy throughout the year.
   This ensures complete records and stronger deductions.

Taxes and the Instacart Mileage Deduction

Mileage deductions play a key role in reducing overall tax liability for Instacart shoppers.

• Self-Employment Tax: Covers Social Security and Medicare.
   Mileage deductions lower the income subject to this tax.
• Quarterly Payments: Independent contractors must make estimated tax payments.
   Mileage logs help calculate realistic estimates.
• 1099 Forms: Instacart reports gross earnings on 1099 forms.
   Mileage deductions lower the net income reported on tax returns.
• Audit Protection: Detailed mileage logs protect against IRS disputes.
   Without proof, claimed deductions can be rejected.

FAQs About Instacart Mileage Deduction

Do I need gas receipts if I use the mileage rate?

No, the standard rate already includes gas and maintenance costs.

Can I deduct commuting miles?

No, trips from home to the first store are considered personal commuting.

What if I use multiple vehicles?

You can deduct mileage for each vehicle used for Instacart. Just keep logs separate.

Is the mileage deduction worth more than actual expenses?

For most Instacart shoppers, yes. The standard mileage rate is simple and usually higher than tracking actual costs.

Final Thoughts on Instacart Mileage Deduction

The Instacart mileage deduction is one of the most effective ways for shoppers to lower their taxable income and keep more of their earnings. By claiming 70¢ per mile in 2025 for business driving, shoppers can offset fuel, insurance, maintenance, and depreciation costs without complicated recordkeeping. With careful tracking — whether through apps like Everlance or a manual log — the deduction can lead to thousands in tax savings. For anyone driving with Instacart, mileage is too valuable to overlook.