Drive for Uber or Lyft? Deliver for DoorDash, Skip, or Uber Eats? The CRA considers you self-employed, which means you’re responsible for reporting all of it, even if it’s part-time or a side hustle.
You’re self-employed
The moment you earn income from a ride-share or delivery platform, you’re running a small business in the eyes of the CRA. That means:
- You report all income on Form T2125 (Statement of Business Activities)
- You’re responsible for your own CPP contributions (both the employee and employer portions): 11.9% of your net earnings above $3,500, up to the yearly maximum, plus 8% CPP2 on higher incomes
- You can deduct legitimate business expenses to reduce what you owe
What counts as income
Everything counts: fares, delivery fees, tips, bonuses, and incentives. The platforms will often provide monthly income summaries, but verify them against your own records, as errors happen.
What you can deduct
Vehicle expenses are usually the biggest deduction for gig workers. Track your gas, insurance, maintenance, repairs, registration, and depreciation, then claim the business-use percentage: work kilometres divided by total kilometres. You’ll need a mileage log showing business vs. personal use to back up that percentage.
Don’t use a per-kilometre rate. The CRA’s per-km figures are allowance rates for employers reimbursing employees. Self-employed drivers can’t claim kilometres × rate on the T2125. See our actual-expense method guide.
Other expenses you can claim:
- Phone and data plan (business portion only)
- Delivery bags or equipment
- Car washes
- Parking fees and tolls paid on the job
- Accounting or professional fees
What you cannot deduct: personal vehicle use, parking tickets, or speeding fines.
GST/HST
The rules depend on what you drive for.
- Rideshare (Uber, Lyft): You must register for a GST/HST number from your first fare. There’s no $30,000 threshold for rideshare drivers.
- Delivery only (DoorDash, Skip, Uber Eats): You must register once your taxable revenue tops $30,000 in a single calendar quarter or over four consecutive quarters.
Once registered, you charge and remit GST/HST on your fares or delivery fees. If you deliver only and you’re getting close to $30,000, track your revenue by quarter.
Staying organized
The hardest part of gig taxes is usually not knowing what to save. A few habits that help:
- Keep a mileage log (date, kilometres, purpose)
- Save all fuel and maintenance receipts
- Track your platform earnings weekly, not just at year end
- Set aside 20-30% of income for taxes as you go
Accountly can track income you enter from multiple platforms, extract receipt details, and organize reports for review at tax time.
Official CRA references
Check the CRA’s Form T2125 and business expense guidance against your tax year and circumstances.
The information in this guide is for general informational purposes only and is not intended as accounting, tax, business, or legal advice. Accountly does not provide professional services or act as your accountant, tax advisor, or lawyer. No client relationship is created by your use of this material. Always seek advice from qualified professionals who understand your particular circumstances before acting on any information contained herein.