Vehicle deductions, mileage logbooks, HST registration, and everything Canadian dashers and couriers need for tax season
Food delivery is one of Canada's fastest-growing gig categories, with hundreds of thousands of Canadians dashing for DoorDash, delivering for Uber Eats, Skip the Dishes, Instacart, and other platforms. Like all gig work in Canada, delivery earnings are self-employment income — reported on T2125, subject to CPP contributions, and potentially subject to HST/GST registration. This guide covers every tax consideration for Canadian delivery drivers in 2025.
Whether you deliver by car, bicycle, e-bike, or motorcycle, your earnings from delivery platforms are self-employment income. The platforms issue T4A slips (Box 48 — Fees for services) showing your gross annual earnings. You report this on Form T2125, deduct allowable business expenses, and pay tax on the net amount, plus CPP contributions on net earnings above $3,500.
Unlike Uber rideshare drivers, food delivery drivers are not subject to mandatory HST registration from dollar one. The standard $30,000 small supplier threshold applies. Many part-time dashers never reach this threshold and never need to register for HST.
If your gross delivery earnings (across all platforms) exceed $30,000 in four consecutive calendar quarters or in a single quarter, you must register for HST/GST. Track your earnings carefully. Once registered, you must collect and remit HST on your delivery fees, though you can claim Input Tax Credits for HST paid on business expenses like fuel, vehicle maintenance, and equipment.
Your vehicle expenses are the largest deduction available. Track every kilometre driven for deliveries and calculate the business-use percentage against total annual kilometres. All operating costs are then deductible at that percentage:
| Expense Type | Deductibility |
|---|---|
| Fuel / gasoline | Business % of total annual fuel |
| Car insurance | Business % (ensure your policy covers commercial delivery) |
| Maintenance (oil, tires, brakes) | Business % of total maintenance |
| Car washes | 100% for delivery-purpose washes |
| Parking during deliveries | 100% |
| Vehicle registration fees | Business % |
| CCA (depreciation) on vehicle | Business % of annual CCA claim |
| Lease payments | Business % up to CRA monthly limit (~$1,050/month) |
| Interest on auto loan | Business % up to $10/day CRA limit |
Many urban delivery drivers use bicycles or e-bikes — these also qualify for business expense deductions. A bicycle used exclusively for deliveries can be claimed under CCA Class 8 (20% declining balance per year). Alternatively, if the bicycle costs under $500, it may qualify as a small tool under Class 12 (100% deduction in year of purchase). Maintenance, locks, lights, insulated bags, and other cycling equipment directly used for deliveries are 100% deductible.
Delivery-specific equipment is 100% deductible as a business expense. This includes insulated food delivery bags and backpacks, thermal containers, bicycle locks used for deliveries, GPS mounts, phone mounts, and any other equipment required to complete deliveries. Keep all receipts.
Your smartphone is essential to delivery work. The business-use portion of your phone and plan is deductible. If you use your phone 70% for delivery work and 30% personally, you can deduct 70% of your monthly plan and 70% of the phone's capital cost through CCA. If the phone cost under $500 and is primarily for business, you may be able to expense the full cost in the year of purchase under Class 12.
The CRA requires a contemporaneous mileage logbook for vehicle expense claims. Every delivery driver using a car must record: date, destination (restaurant to customer address), business purpose, and odometer readings. Apps like MileIQ, Everlance, or TripLog automate this process. DoorDash provides a delivery history you can cross-reference, but it does not substitute for a complete logbook that includes personal versus business driving totals.
Self-employment income including delivery earnings is subject to CPP contributions at the combined employer/employee rate of approximately 11.9% on net income between $3,500 and $71,300 in 2025. Even part-time dashers earning $15,000 net would owe approximately ($15,000 – $3,500) × 11.9% = $1,368 in CPP on top of income tax.
Many drivers work for DoorDash, Uber Eats, and Skip the Dishes simultaneously. For tax purposes, combine all platform earnings into a single T2125 if they represent one general delivery business. Add up all income across platforms, and track expenses holistically. If your platforms issue separate T4A slips, all amounts aggregate to the same T2125.
Most delivery drivers don't have a traditional home office, but if you spend meaningful time at home managing your delivery business (reviewing analytics, contacting support, planning routes), you may be able to claim a small home office deduction. The CRA requires the space to be used exclusively or primarily for business purposes to qualify.
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