Gig Economy Tax Canada 2025

Driving for Uber, delivering for DoorDash, or working through any gig platform? Here's exactly how Canadian gig workers are taxed and what you can deduct.

Gig Platforms and Your Tax Status

In Canada, gig workers for platforms like Uber, Lyft, DoorDash, SkipTheDishes, Instacart, and similar apps are treated as self-employed independent contractors — not employees. This means:

• No tax is withheld at source — you owe all tax at filing time
• You must pay both employee and employer CPP contributions (11.9% combined)
• You are responsible for your own EI (you cannot typically collect EI)
• You must file Form T2125 (self-employment income)
• You may receive a T4A slip from the platform showing your earnings

GST/HST — Special Rule for Rideshare Drivers

Uber and Lyft drivers have a special GST/HST rule: you must register for and collect GST/HST from your very first dollar of ridesharing income — the usual $30,000 small supplier threshold does NOT apply to ridesharing. The platform (Uber, Lyft) typically remits the GST/HST on your behalf through their platform model, but you still need a GST/HST account and must file GST/HST returns. Food delivery drivers follow the regular $30,000 threshold.

What the Platforms Report to CRA

Platform	Service	CRA Reporting
Uber	Rideshare	T4A issued if earnings reported
Uber Eats	Food delivery	T4A issued for some drivers
DoorDash	Food delivery	T4A may be issued
SkipTheDishes	Food delivery	T4A may be issued
Instacart	Grocery delivery	T4A may be issued

Even if you don't receive a T4A, all income must be reported. The CRA receives information from digital platforms and cross-references it with filed returns.

Vehicle Expense Deductions for Gig Drivers

Vehicle expenses are the largest deduction available to gig drivers. You can deduct the business-use portion of:

• Fuel and oil
• Insurance
• Repairs and maintenance
• Lease payments or CCA on the vehicle
• License and registration fees
• Car washes
• Parking (business trips only)

Business-use percentage = business kilometres / total kilometres driven in the year. Keep a mileage log recording each trip's date, destination, and purpose. This is critical for CRA audit purposes.

Other Deductible Gig Worker Expenses

• Phone and data plan (business-use portion)
• Phone mount, charger, and accessories used for the job
• Insulated delivery bags
• Bicycle or e-bike maintenance (for delivery cyclists)
• Accounting fees for preparing your return
• Bank fees for a business account

Setting Aside Tax as a Gig Worker

Since nothing is withheld from your gig earnings, you must set aside money throughout the year to cover your tax bill. A general rule: set aside 25–30% of net gig income if you are in a lower-to-middle income bracket, or 35–40% if your combined employment + gig income is above $100,000. Pay by the April 30 deadline to avoid interest charges. If you expect to owe more than $3,000 in tax, you may be required to make quarterly instalments.

Quarterly Tax Instalments

If your net tax owing exceeds $3,000 ($1,800 in Quebec) in the current year and either of the two prior years, the CRA will require you to pay quarterly instalments in March, June, September, and December. Failing to pay instalments results in instalment interest charges even if you pay your full balance by April 30.