Millions of Canadians earn income through gig economy platforms like Uber, Lyft, DoorDash, Instacart, SkipTheDishes, and TaskRabbit. What many don't realize is that this income comes with unique tax obligations — some of which are more complex than traditional employment taxes. This guide breaks down exactly what gig workers need to know in 2025.
In Canada, gig workers on platforms like Uber and DoorDash are generally classified as independent contractors, not employees. This means no tax deductions at source, no employer CPP contributions, and no employer EI premiums — but it also means significant deduction opportunities. The CRA has maintained this classification for most gig platforms, though some provinces are beginning to re-examine worker classification rules.
This is one of the most misunderstood aspects of gig economy taxes in Canada. Uber drivers and ride-sharing workers must register for GST/HST immediately upon starting — the normal $30,000 small supplier threshold does NOT apply to taxi and ride-sharing services. This is a legal requirement regardless of how little you earn.
However, there is a practical relief: Uber, Lyft, and similar platforms collect and remit HST on your behalf in most provinces. You are still the registered supplier for CRA purposes and need your own GST/HST number, but the platform handles the actual HST on fares. You can then claim Input Tax Credits (ITCs) for the HST you pay on business expenses like gas, vehicle maintenance, and phone bills.
For delivery platforms (DoorDash, Instacart, SkipTheDishes), the standard $30,000 threshold applies — you only need to register once you exceed that amount.
Report your gross earnings from all gig platforms, not the amount deposited after platform fees. The platform fees are a deductible business expense — but you must report the full amount earned first. Your annual earnings summary from each platform shows the gross figure. Include:
For ride-share and delivery drivers, vehicle expenses are typically the largest deduction. You can deduct the business-use portion of:
The business-use percentage is determined by kilometers driven for business versus total kilometers driven. Keep a mileage log — the CRA requires contemporaneous records (kept as you go, not reconstructed later). Apps like MileIQ or Stride make this easy. Record the date, starting point, destination, purpose, and kilometers for every business trip.
Your smartphone is essential for gig work. Deduct the business-use percentage of your monthly plan. If you use your phone 70% for gig work and 30% for personal use, 70% of your phone bill is deductible.
Uber, DoorDash, and other platforms take a commission from your earnings. These platform fees are fully deductible as a business expense. Check your annual earnings summary — it typically shows gross earnings and platform fees separately.
Delivery bags, phone mounts, dash cameras, portable chargers, and other gear purchased for gig work are deductible. Keep all receipts.
If you pay for ride-share insurance coverage or a commercial rider on your auto policy, the premium increase for business coverage is deductible.
Without a mileage log, you cannot claim vehicle expenses — or you'll face a disallowed claim in an audit. The CRA accepts digital logs (app-based) as well as paper. Your log must include:
Also keep a note of your odometer reading on January 1 each year to calculate total annual km driven.
The biggest financial mistake new gig workers make is spending every dollar they earn. Platforms deposit gross earnings less their fee, but you still owe income tax and CPP on that amount. Rough rule of thumb:
Open a separate savings account and transfer the tax portion immediately when each deposit arrives. This prevents the painful scenario of owing $3,000-$8,000 at tax time with nothing saved.
Many workers use multiple platforms simultaneously (Uber + DoorDash + Instacart). You report all income combined on a single T2125. You cannot deduct the same expense multiple times across platforms — your total vehicle deduction, for instance, is based on total business km regardless of which platform generated those km.
Having a T4 job alongside gig work is very common. You'll file a T4 from your employer AND a T2125 for your gig income. Your employer withholds tax on employment income, but the gig income gets added on top — meaning your overall tax rate may be higher than you expect. If your gig income is significant, consider asking your employer to withhold additional tax at source (using Form TD1) to avoid a large balance owing in April.
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Open KOHO Free — No Fees — Code 45ET55JSYAUse Form T2125 to report your business income and expenses. Most tax software (TurboTax, Wealthsimple Tax, H&R Block) supports T2125 and will guide you through the process. Key information you'll need:
Your filing deadline is June 15 as a self-employed person, but any taxes owing are due April 30.