How do taxes work for Uber, DoorDash and Skip drivers in Canada?

Nobody withholds tax from an Uber, DoorDash or Skip payout. That makes the driver responsible for the income tax, the CPP and, often, the GST/HST, and it's why the first spring can come as a surprise.

Are gig drivers employees or self-employed?

The CRA says commercial rideshare and delivery drivers are generally self-employed (CRA tax tip). Two things follow:

• All of your income counts. The tip says "you must report all of your income, including tips, on your income tax return," even if the work is part-time.
• It's business income. You report revenue and expenses on the statement of business activities that comes with your return, and pay tax on the profit.

The CRA has a separate page for the sharing and platform economy that covers the same ground for other platform work.

What can you deduct?

The fees the platform keeps are deductible: the CRA's tip names "fees the platform keeps for administrative and maintenance purposes." The rest comes down to your car, plus other costs of earning the income.

For the car, the CRA's motor vehicle expenses page lists:

• licence and registration fees;
• fuel and oil;
• electricity for zero-emission vehicles;
• insurance;
• interest on money borrowed to buy the vehicle;
• maintenance and repairs;
• leasing costs.

Capital cost allowance, the tax version of depreciation, is claimed separately, and passenger vehicles have limits on it, on interest and on leasing.

You deduct only the business share. The CRA's example: "(27,000 business kilometres ÷ 30,000 total kilometres) x $7,000 = $6,300." Business parking is the exception: "You can deduct the full amount of parking fees related to your business activities."

That makes two records essential: receipts for every cost, and a logbook that shows how many kilometres were for work. Our article on what a mileage log should include covers what the CRA asks for.

Is there a per-kilometre rate for self-employed drivers?

Not one you can use instead of your real costs, as we read the CRA's pages. The CRA's reasonable per-kilometre rates appear under allowances an employer pays an employee. A self-employed driver deducts their actual costs multiplied by the business share, as above. The US standard mileage rate you may have read about is an IRS option for US taxpayers, not a CRA one.

Do you pay CPP on gig income?

Yes, and twice over compared with an employee. The Government of Canada's CPP page says: "If you are self-employed, you make the whole contribution." That means both the employee's and the employer's share. It's "based on your net business income (after expenses)," which is one more reason to keep the expense records. The contribution is worked out on your income tax return; the rates and maximums change each year, so we don't quote them here.

When do you pay, and do you owe instalments?

Self-employed people get until June 15 to file, but the CRA's deadlines page is clear that any balance owing is due on April 30. Interest starts the day after.

Once the tax on your driving adds up, the CRA may also expect you to pay during the year. You have to pay instalments when your net tax owing is more than $3,000 ($1,800 in Quebec) for the current year and also was in either of the two years before (CRA instalments). They're due on March 15, June 15, September 15 and December 15. A practical habit is to move part of each payout into a separate account the day it arrives; how much depends on your income and province, which an accountant can work out with you.

Does the CRA know what the platforms paid you?

Increasingly, yes. Under the CRA's reporting rules for digital platform operators, platforms report what they paid sellers of personal services, and the CRA lists transportation and delivery services among those. Reporting began with the 2024 calendar year. In practice your own records should match the annual summaries the platforms send you.

What about GST/HST?

That's a separate account with its own rules: rideshare drivers register from their first fare, delivery-only drivers once they pass $30,000 of taxable sales over four calendar quarters. See do Uber, DoorDash and Skip drivers have to charge GST/HST?.