Introduction
If you’re an independent contractor working for Instacart, understanding the Instacart mileage deduction can make a big difference in your tax return. Every mile you drive for deliveries, shopping trips, and returning from drop-offs adds up. And when properly tracked and reported, those miles can be deducted from your taxable income, helping you save hundreds—if not thousands—of dollars each year.
In this guide, we’ll break down what the mileage deduction is, how it applies to Instacart shoppers in 2025, and what steps you should take to track, calculate, and claim it accurately. For detailed instructions, refer to the official Instacart mileage deduction guide by Everlance, which includes app-based tools and IRS-compliant strategies.
What Is the Mileage Deduction?
The IRS allows self-employed individuals to deduct vehicle expenses from their business income. This includes rideshare and delivery drivers like Instacart shoppers. Rather than tracking every single gas station receipt or repair bill, the IRS offers a standard mileage rate that simplifies the process. For 2025, the standard mileage rate is expected to remain close to 65.5 cents per mile for business use.
If you drive 10,000 miles over the course of the year delivering for Instacart, that equals a potential deduction of $6,550. This deduction directly reduces your taxable income, making it one of the most valuable write-offs for gig economy workers.
What Counts as Deductible Mileage for Instacart?
Not all miles are created equal when it comes to deductions. The IRS only allows you to deduct miles driven for legitimate business purposes. As an Instacart shopper, this includes:
- Driving to the store to start shopping
- Traveling from the store to the customer’s location
- Returning from a drop-off to a high-demand zone or new batch pickup area
- Trips between stores if multiple batches are part of the same work session
However, personal trips—like driving to lunch or commuting from home to your first delivery area—do not count as deductible mileage. Accurate classification is key to ensuring you stay compliant and maximize your write-off.
How to Track Your Mileage Accurately
The IRS requires “contemporaneous” mileage records. That means you must log your trips as they happen or shortly afterward. Estimating your total miles at the end of the year is not acceptable and may lead to denied deductions in case of an audit.
You need to record the following for every trip:
- Date of the drive
- Starting point and destination
- Purpose of the trip (e.g., “delivery for Instacart”)
- Total miles driven
While you can log this manually in a notebook or spreadsheet, the easiest and most reliable way is to use a mileage tracking app. Apps like Everlance automatically track your drives using GPS and generate detailed logs for tax filing.
This is exactly what the Instacart mileage deduction guide by Everlance is designed to support—ensuring your logs are audit-proof and effortless to maintain.
Calculating Your Deduction: Standard Mileage vs. Actual Expenses
There are two methods to claim vehicle deductions on your taxes:
1. Standard Mileage Method
You multiply the number of business miles driven by the IRS mileage rate for the year. This method is simple, widely used, and easy to justify in an audit—especially if you’re using an app that tracks mileage.
Example:
12,000 miles × $0.655 = $7,860 deduction
2. Actual Expense Method
Instead of tracking miles, you calculate the actual costs of using your vehicle for business, including fuel, insurance, repairs, lease payments, and depreciation. You then deduct the business-use percentage based on how often the car is used for work.
For most Instacart shoppers, the standard mileage method is more practical. It requires less documentation and often results in a similar or even higher deduction if you drive frequently.
Common Mistakes That Could Cost You
Many shoppers miss out on valuable deductions—or worse, put themselves at risk—by making simple but costly mistakes:
- Forgetting to track return trips
- Failing to start mileage tracking at the beginning of the year
- Estimating mileage instead of logging it accurately
- Using the actual expense method without the proper receipts
- Claiming personal miles as business trips
These errors can reduce your deduction, raise red flags with the IRS, or result in lost money that could’ve been yours.
When to Start Tracking Your Mileage
The ideal time to start tracking is January 1, or as soon as you begin driving for Instacart. Every mile you miss logging is a potential deduction lost.
If you’re starting mid-year, don’t panic. You can begin tracking immediately and still capture all future mileage for the rest of the tax year. Just make sure you keep consistent records from that point forward.
The longer you wait, the more opportunities you leave on the table.
Filing Your Mileage Deduction on Taxes
At the end of the year, your mileage total is entered on IRS Schedule C, which reports your income and expenses as a self-employed individual. You’ll also attach Form 1040 and any other relevant forms.
You won’t need to submit your mileage logs with your return, but you must have them available in case of an audit. This is why using tools that generate downloadable reports is helpful. Everlance, for example, allows you to export IRS-ready mileage logs that you or your tax preparer can file with ease.
Why Instacart Mileage Deduction Matters in 2025
With inflation still affecting fuel costs and vehicle expenses rising, the ability to deduct mileage is more important than ever. For shoppers driving hundreds of miles per week, this deduction could mean the difference between a marginal gig and a profitable one.
By understanding how the Instacart mileage deduction works—and by using tools to automate tracking—you set yourself up for a smoother tax season and more money in your pocket.
Conclusion
Every Instacart shopper should take full advantage of the Instacart mileage deduction. It’s one of the most impactful, straightforward ways to reduce your tax burden and increase your actual earnings. But it only works if you start early, stay consistent, and keep accurate records.
With the help of smart mileage tracking tools and a clear understanding of what counts and what doesn’t, you can navigate 2025 with confidence—and keep more of what you earn.