Delivering for DoorDash, SkipTheDishes, or Uber Eats is one of the most accessible ways to earn flexible income in Canada — but every DoorDash courier is running a small business in the eyes of the CRA. Understanding your tax obligations from day one protects you from painful surprises at filing time and helps you keep more of what you earn through legitimate deductions.
DoorDash and similar delivery platforms classify their couriers as independent contractors, not employees. This has major tax implications: no tax is withheld from your earnings, no employer CPP contributions are made on your behalf, and you receive no T4. Instead, you report your income on Form T2125 as self-employment business income.
Report your gross earnings before DoorDash's fees and charges. Your annual earnings summary from DoorDash (typically available through the Dasher app or by request in January) shows gross delivery fees, tips, and any bonuses. Report all of it:
If you deliver by car, your vehicle expenses are the largest deduction available. Track all km driven for deliveries (including driving to the restaurant, driving to the customer, and driving home from your last delivery). Calculate the percentage of total annual km used for delivery work and apply that to:
Many couriers in urban areas deliver by bicycle or e-bike. Maintenance, repairs, lock costs, storage fees, and the purchase price (through CCA) are all deductible for business-use delivery bikes. Keep receipts for all maintenance.
The Dasher app requires a smartphone and data plan. The business-use portion of your monthly phone bill is deductible. If you use your phone 65% for DoorDash and 35% personally, 65% of your plan cost is deductible.
Thermal delivery bags, insulated backpacks, and similar equipment used to keep food warm during delivery are fully deductible business supplies. Keep your purchase receipts.
DoorDash takes a portion of the total order value as their service fee. This platform commission is a deductible business expense — it's the cost of accessing their customer network and payment processing.
Parking fees paid while picking up orders are deductible. Keep receipts for pay-and-display or metered parking. Parking tickets are not deductible.
To claim vehicle expenses, you must keep a mileage log. The DoorDash app shows completed deliveries but does not track all business km (particularly deadhead km — driving to the restaurant before accepting an order, or driving home from your last delivery). Use a dedicated app like MileIQ, Stride, or TripLog to capture all business km automatically. Record your January 1 odometer reading each year.
Add up your earnings across all self-employment activities: DoorDash + any other platforms + any freelance work. Once you exceed $30,000 in total self-employment revenue in any rolling 12-month period, you must register for GST/HST within 30 days. Failure to register when required can result in the CRA assessing HST on your past sales (that you never collected), plus interest and penalties.
If you're close to $30,000 and not sure, track carefully. Register proactively if you're approaching the threshold — it's better to be registered and not need it than to cross over without registering.
Self-employed individuals pay both the employee and employer portions of Canada Pension Plan contributions. For 2025, this is approximately 11.9% of net self-employment income between the basic exemption (~$3,500) and the YMPE (~$68,500). On $25,000 of net delivery income, you'd owe roughly $2,560 in CPP contributions on top of income tax. Budget for this from day one.
File Form T2125 with your T1 tax return. Gather:
Your filing deadline as a self-employed person is June 15, but any tax balance is due April 30. Set aside 25-30% of all delivery earnings throughout the year.
When you're self-employed, every fee matters. KOHO offers a free account with no monthly fees, no minimum balance, and instant spending notifications — perfect for tracking your business vs. personal expenses. Use code 45ET55JSYA to get a bonus.
Open KOHO Free — No Fees — Code 45ET55JSYAFrom a tax perspective, all three major delivery platforms work the same way in Canada: you are an independent contractor, income is reported on T2125, and vehicle deductions apply. The key differences are operational, not tax-related. Some platforms provide clearer annual tax summaries than others — DoorDash's Dasher app summary is generally comprehensive and provides gross earnings, tips, and bonus pay separately.
Many Dashers also have a part-time or full-time job. Your employer withholds income tax on your salary, but your DoorDash income is added on top at your marginal rate. This creates a common mistake: since your employer's withholding doesn't account for your side income, you'll likely owe additional taxes at filing. Consider asking your employer to withhold extra tax each pay period (using Form TD1) to avoid a large April balance owing.