Taxes for rideshare and delivery drivers in Canada

If you drive for a rideshare or delivery platform in Canada, the CRA generally treats you as self-employed. Your vehicle is your main business cost, and the logbook is what turns it into a deduction. The sources are the CRA tax tip on tax obligations for commercial ridesharing and delivery services and the CRA's platform economy pages.

This page is general information, not tax advice. The United States counterpart is the mileage log for DoorDash and Uber drivers.

You are self-employed

Drivers for Uber, Lyft, DoorDash, Skip the Dishes, Instacart, and similar platforms are generally considered self-employed. You report your income and expenses on Form T2125, Statement of Business or Professional Activities, with your personal return. If you incorporated, the equivalent is Schedule 125 of the T2 corporate return. Tips are income and go on the same form.

Your vehicle costs

There is no per-kilometre rate for the self-employed in Canada. You deduct the business share of actual costs, and the share is business kilometres divided by total kilometres. The T2125 motor vehicle expenses guide has the calculation and the 2026 limits. The logbook requirements guide has what each trip must record.

Driving between a pickup and a drop-off, and between one delivery and the next, is business. Driving between home and a regular place of work is personal, and the CRA has not addressed on canada.ca whether the drive from home to a first pickup counts as business for a gig driver. Record it, classify it consistently, and ask a tax professional if the amount matters to you.

GST/HST registration

The rules differ by type of driving.

• Ridesharing (carrying passengers for a fare) must register for GST/HST from the first dollar of income. The $30,000 small-supplier threshold does not apply.
• Delivery only (food, groceries, packages) must register once income passes $30,000 over four consecutive calendar quarters. You can register earlier by choice.
• Both kinds of driving under $30,000 means you register because of the ridesharing, and the registration covers the delivery income too.

Once registered, you collect GST/HST on fares, file returns, and can claim input tax credits on the business share of your costs.

How Miles handles this

• Shift mode marks every drive between Start shift and End shift as business and tags it with the platform, so a night of deliveries becomes one classified record.
• The home-to-first-pickup drive is classified separately, so you can treat it the way you and your tax professional decide.
• The T2125 report gives the business kilometres, the total kilometres from the odometer readings, and the prorated costs.
• Miles does not handle GST/HST returns.

Miles is coming soon.