A complete tax guide for Canadian Dashers — from income reporting to vehicle deductions and HST registration.
Yes. All DoorDash income — base pay, tips, promotions, and peak pay — is taxable self-employment income. DoorDash does not withhold income tax or CPP from your earnings. You receive the full amount and must set aside funds for taxes yourself.
DoorDash issues a T4A slip if you earn more than $500 from them in a calendar year, but you must report all income regardless of whether a T4A is issued.
Unlike rideshare drivers, DoorDash couriers use the standard small supplier threshold: you must register for HST/GST when your total taxable self-employment revenue exceeds $30,000 over four consecutive calendar quarters or in any single quarter.
If you also do ridesharing (Uber/Lyft), those revenues count toward the $30,000 limit. Once registered, you collect and remit HST on all delivery income.
Whether you deliver by car, bike, or scooter, you can deduct vehicle costs. The two CRA-accepted methods:
| Method | Best For |
|---|---|
| Per-km rate (70¢ first 5,000 km; 64¢ after) | Lower mileage, simpler record-keeping |
| Actual vehicle costs × business-use % | High mileage or expensive vehicle |
For cyclists: you can claim a per-km rate or actual bike maintenance costs. Keep a log of all delivery kilometres.
File Form T2125 with your T1. Business activity: "Courier / Delivery Driver." Gross income = all DoorDash earnings (base pay + tips + bonuses). After deducting expenses, report net income on line 13500 of your T1. CPP is calculated on Schedule 8.
If you use KOHO, you can set up a savings goal specifically for taxes and automate the transfer from your main account after each payout.
KOHO's instant spending notifications help you track income and expenses in real time — essential for gig workers managing their own taxes. No monthly fees, cash back, and easy to open. Use code 45ET55JSYA for a sign-up bonus.
Get KOHO Free — Use Code 45ET55JSYAInformational only. Not tax or legal advice. Consult a CPA for your specific situation.