Driving for Uber, delivering for DoorDash, or working for any other gig platform in Canada means you're self-employed. You receive no T4, no tax is withheld, and it's entirely your responsibility to track income, deduct expenses, register for GST/HST (in some cases immediately), and file correctly. This guide covers everything gig drivers need to know about taxes in Canada.
Gig platforms classify drivers as independent contractors. This means all the rules of self-employment apply: you report income on Form T2125, pay self-employed CPP contributions, and are responsible for your own taxes. No withholding happens on your payouts.
This is the most important tax fact for Uber and Lyft drivers: rideshare drivers must register for GST/HST from their very first dollar of income. The normal $30,000 small supplier threshold does not apply to ridesharing services.
This means even if you earn only $500 driving for Uber, you are legally required to have a GST/HST registration number and to account for GST/HST on your fares.
Uber and Lyft handle GST/HST collection directly — they collect HST from passengers and remit it on your behalf. You still need to be registered and file GST/HST returns, but these platforms simplify the collection side. Check your driver dashboard to confirm how your specific situation is handled.
Food delivery drivers are subject to the standard $30,000 threshold for GST/HST registration. Once you exceed $30,000 in gross delivery income over four consecutive quarters, you must register.
Report all income from gig platforms — fares, delivery fees, tips, bonuses, and incentive payments. Your platform's tax summary (available in your driver app or dashboard) shows your gross earnings for the year. Use this as the basis for your T2125.
Vehicle expenses are by far the largest deduction for gig drivers. You can deduct the business-use percentage of total vehicle costs:
Your business-use percentage = total business kilometres ÷ total kilometres driven in the year × 100.
If you drove 25,000 km total and 15,000 km were for gig work, your business-use is 60%. That percentage applies to all vehicle costs.
To claim vehicle expenses, you must maintain a mileage log throughout the year. It must record:
Apps like MileIQ, TripLog, or Stride automate this tracking. Your platform's trip history can supplement but not replace a proper mileage log. CRA will request the log if you're audited.
Self-employed gig drivers pay both the employee and employer portions of CPP — roughly 11.9% of net self-employment income above $3,500 in 2025. Budget for this alongside income taxes. It's calculated on Schedule 8 when you file your T1.
If you owed more than $3,000 in federal taxes in either of the previous two tax years, the CRA will ask you to pay quarterly instalments. Many gig drivers who've been working for a few years will hit this threshold. Instalment due dates: March 15, June 15, September 15, December 15.
File your T1 with a completed T2125 by June 15 (self-employed deadline). Pay any taxes owing by April 30 to avoid interest. Tax software like Wealthsimple Tax or TurboTax walks you through T2125 step by step and handles all calculations.
A safe rule: set aside 25–30% of gross gig income in a separate savings account for taxes. After deducting vehicle and other expenses, your net income — and therefore your tax bill — will be lower, but setting aside more early is better than being short in April.
KOHO offers free banking with no monthly fees — perfect for freelancers and gig workers. Use code 45ET55JSYA for a bonus when you sign up.
Open KOHO Free — No Fees — Code 45ET55JSYA