T4A reporting, kilometre tracking, insulated bag deductions, and a complete food delivery driver tax calculator
Food delivery driving for DoorDash, Skip the Dishes, Uber Eats, or Instacart is one of Canada's most popular side hustles — but many drivers are surprised to learn they owe significantly more tax than just income tax. Understanding your T4A slip, what kilometres you can track, which expenses are deductible, and whether you need a GST/HST number is essential for keeping more of your delivery earnings.
DoorDash, Skip the Dishes, and other platforms issue a T4A slip (Statement of Pension, Retirement, Annuity, and Other Income) to Canadian contractors earning over $500 in a calendar year. Box 48 of the T4A shows your self-employment income from the platform. This amount flows to T2125 Part 2 as your gross business income. Always report the gross amount from the T4A — not the net after any platform fees already deducted.
Unlike rideshare drivers (who must register from dollar one), food delivery drivers are NOT automatically excluded from the $30,000 small supplier threshold. Food delivery is not classified as a "taxi business" under the Excise Tax Act. This means:
Note: DoorDash and similar platforms handle the HST on restaurant orders charged to customers — your HST obligation, if applicable, relates to the service fee you charge the platform for your delivery services.
| Expense | Deductible | Notes |
|---|---|---|
| Vehicle fuel | Business % | Logbook required — delivery km ÷ total km |
| Vehicle insurance | Business % | Keep annual premium statement |
| Vehicle maintenance | Business % | Oil changes, tires, repairs |
| Vehicle CCA | Business % | Class 10 (30%) or 10.1 if over $36K |
| Insulated delivery bags | 100% | Required equipment — fully deductible (Class 12 if over $500) |
| Bicycle (delivery use) | CCA or 100% | Under $500 = 100%; over $500 = CCA Class 8 (20%) |
| E-bike purchase | CCA Class 8 (20%) | Business use % of purchase price |
| Phone and data plan | Business % | High % justified — essential for the app |
| Phone mount / holder | 100% | Required for safe use of app while driving |
| Platform fees/commissions | 100% | Any fees charged by DoorDash/Skip |
| Parking fees (during deliveries) | 100% | Keep records |
| Winter gear (delivery-specific) | 100% | Insulated jacket specifically for outdoor delivery use |
Your vehicle expense deduction is entirely dependent on your business-use percentage. For delivery drivers, business kilometres include: driving from home to your first pick-up of the day, all driving between restaurants and delivery addresses, and driving home after your last delivery. Personal driving (grocery runs, social trips, commuting to any other job) is not deductible.
Use a dedicated mileage tracking app (MileIQ, Everlance, TripLog) or download your in-app trip history from DoorDash/Skip and supplement with manual notes. Record your odometer reading on January 1 and December 31 each year.
Use Form T2125 to report your delivery income and expenses. The net amount flows to Line 13500 of your T1 return. You will also complete Schedule 8 for your CPP contributions on self-employment income. If you have both T4 employment income and delivery income, combine them for total income purposes — your marginal rate applies to all income combined.
KOHO's business account gives delivery drivers a separate account for earnings, automatic tax savings, and a clean record for your T2125.