Driving for Uber in Canada is straightforward on the road — but tax season introduces complications that surprise many new drivers. From mandatory GST/HST registration on day one to vehicle deductions that can significantly reduce your tax bill, here is a complete guide to Uber driver taxes in Canada for 2025.
This is the most important distinction between Uber driving and other gig economy work in Canada: the standard $30,000 small supplier threshold for GST/HST registration does NOT apply to ride-sharing services. Under the Excise Tax Act, taxi and ride-sharing services are required to register for GST/HST from the moment they start providing rides — regardless of income earned.
You must register for a GST/HST account through the CRA before you complete your first paid ride. Registration is free and can be done online through the CRA My Business Account portal or by calling 1-800-959-5525.
To register for GST/HST, you'll need:
Once registered, provide your GST/HST number to Uber through the driver app settings. Uber will then handle HST remittance on eligible fares. Keep records of all your HST account transactions.
Your gross income (before Uber's service fee) is your business revenue for CRA purposes. Do not report only the amount deposited — report the full amount earned before deducting Uber's cut. Uber's annual tax summary, typically available through the driver app by February, shows your gross fares, tips, Uber service fee, and net earnings.
Include all of the following as income:
Vehicle expenses are typically the biggest deduction available to Uber drivers. Since your car is essential to earning income, the business-use portion of all vehicle costs is deductible. Your business-use percentage is:
Business km ÷ Total km driven × 100 = Business use %
If you drove 20,000 km total and 12,000 km for Uber, your business use is 60%. Apply that 60% to all vehicle costs:
The CRA requires a mileage log to support vehicle expense claims. This must be contemporaneous — kept as you go, not reconstructed later. Each entry should include:
Uber's driver app actually provides a useful record of all trips completed — including dates, times, and approximate distances. However, this doesn't capture deadhead mileage (driving to pick up passengers or driving home after your last ride), which is also deductible business mileage. Use a dedicated mileage tracking app (MileIQ, TripLog, or Everlance) to capture all business km automatically.
Keep your January 1 odometer reading each year so you can calculate total annual km.
Your smartphone is required for the Uber driver app. Deduct the business-use percentage of your monthly plan cost and any phone hardware depreciation. If you use your phone 60% for Uber work and 40% personally, 60% of the plan cost is deductible.
Dashboard phone mount, charging cables, portable battery packs — all deductible supplies for running your rideshare business.
The service fee (commission) Uber takes from your fares is a fully deductible business expense. It's shown separately on your annual earnings summary.
Some drivers provide water bottles, phone chargers, or mints for passengers. These are deductible supplies (keep receipts and be reasonable — the CRA looks for proportionality).
Purchased for safety and insurance purposes, a dash camera used in your rideshare vehicle is a deductible business asset.
Parking fees and highway tolls incurred while working are deductible. Personal parking at home is not deductible.
As a registered GST/HST business, you can claim Input Tax Credits (ITCs) to recover the HST you paid on eligible business expenses. If you spent $500 on tires (with 13% HST in Ontario = $65 HST), you can claim that $65 back on your HST return. This can meaningfully reduce your net HST obligation and is available regardless of how Uber handles the fares HST.
Report all Uber income and expenses on Form T2125 (Statement of Business or Professional Activities) filed with your T1 personal tax return. You'll also file annual HST returns — either annually (simplest), quarterly, or monthly, depending on your registration choice.
For most part-time Uber drivers, annual HST filing is simplest. If you earn significant rideshare income and have large ITC claims, quarterly filing gets your ITCs back faster.
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Open KOHO Free — No Fees — Code 45ET55JSYAYour total tax bill as an Uber driver includes:
Save aggressively. Many experienced Uber drivers set aside 30-35% of gross earnings for taxes. The vehicle deductions help significantly, but CPP contributions on top of income tax add up faster than most people expect.