Uber Driver Taxes in Canada 2025: What to Claim

Uber Driver Tax Overview

As an Uber driver in Canada, you are self-employed. Uber does not deduct income tax, CPP, or EI from your payments. You are responsible for tracking your income, claiming deductions, collecting and remitting HST (in HST provinces), and filing T2125 with your T1 return each year.

Uber provides an annual tax summary through the driver app, but you should maintain your own records throughout the year — the summary may not include all deductible expenses.

HST Registration for Uber Drivers

Uber drivers in Ontario, Nova Scotia, New Brunswick, Newfoundland, and PEI collect HST. Drivers in Alberta, BC, Saskatchewan, and Manitoba collect GST (or GST + provincial sales tax). Quebec drivers collect QST.

You must register before your first fare. The registration process takes a few days online through My Business Account on the CRA website. Once registered, you charge HST on every fare and remit it to CRA (minus Input Tax Credits on your business expenses).

Top Deductions for Uber Drivers

• Vehicle expenses — Your biggest deduction. Two methods:

Simplified (per-km): 70¢/km for first 5,000 business km; 64¢/km thereafter. Multiply by the kilometres you drove for Uber.

Actual cost: Track all vehicle costs (gas, insurance, maintenance, loan interest, CCA) then multiply by your business-use percentage (Uber km ÷ total km).

• Cell phone — Business-use % of your plan
• Data and apps — GPS apps, dash cam subscriptions
• Car washes and cleaning — Required to maintain vehicle for passengers
• Dash cam — Capital cost allowance (CCA Class 8)
• Parking fees — While waiting for rides or at airport
• Bank fees — If using a separate business account
• Accounting fees — Tax preparation costs
• Water and snacks for passengers — Small but deductible

Mileage Tracking Is Non-Negotiable

CRA requires a mileage log if you claim vehicle expenses. For Uber drivers, the Uber app records trip kilometres, but you also need to track total annual kilometres driven (business + personal). Use a dedicated mileage tracking app or keep a logbook in your car.

Record: date, destination, purpose, odometer start/end for every business trip. CRA audits rideshare drivers — don't skip this.

T2125 Filing for Uber Drivers

Report Uber income on Form T2125 — Statement of Business Activities. Under business activity, enter "Rideshare Driver" or "Transportation Services." You will enter gross fares, HST collected (if applicable — handled separately on GST/HST return), then deduct expenses to arrive at net income.

Net income from T2125 flows to Line 13500 of your T1. CPP is calculated on Schedule 8.

CPP for Uber Drivers

Self-employed drivers pay CPP at 11.9% on net self-employment income (after expenses, before CPP deduction). The maximum net income subject to CPP in 2025 is approximately $71,300. CPP2 applies at an additional 8% on net income between roughly $68,500 and $73,200. Your CPP contributions are 50% deductible on line 22200 of your T1.

Quarterly Installments

If you owe more than $3,000 in net taxes, the CRA will send you installment reminders. Pay by March 15, June 15, September 15, and December 15 to avoid interest. Many Uber drivers set aside 28–32% of gross fares as a tax reserve throughout the year.