Top Tax Deductions for Gig Workers and Uber Drivers in Canada

Are You Self-Employed? The CRA Says Yes.

Platform companies like Uber, Lyft, SkipTheDishes, and DoorDash treat their drivers as independent contractors, not employees. The CRA agrees. This means no T4 slip — instead you report your gross earnings on Line 13499 of your T1 return and deduct eligible expenses to arrive at net business income. You pay tax on the net amount, not the gross.

Vehicle Expenses (The Biggest Deduction)

For most gig drivers, vehicle expenses represent the largest deductible cost. You can deduct a portion of your actual costs based on the percentage of kilometres driven for work versus personal use. You must keep a mileage logbook to support this claim.

• Gas and fuel — 100% of business portion
• Car insurance — Business portion (e.g., 60% if 60% of km are work-related)
• Car loan interest — Up to $300/month for a purchased vehicle
• Lease payments — Up to $900/month (2025 limit)
• Oil changes, tires, maintenance, and repairs — Business portion
• Capital Cost Allowance (CCA) — Annual depreciation deduction on vehicle purchase
• Parking fees paid while on a trip — 100% deductible
• Car wash costs during work trips — Business portion

Phone and Data Plan Expenses

Your smartphone is essential to gig work — you cannot do it without a GPS and the app. You can deduct the business-use portion of your monthly phone plan. If you use your phone 70% for work, deduct 70% of the bill. You can also deduct a mount, phone case bought for work, or a second phone dedicated to gig work.

Other Deductible Expenses for Gig Workers

• Rideshare platform service fees — Uber takes 20–25%; that fee is deductible
• Bank fees for a business account — 100% deductible
• Accounting and tax preparation fees — 100% deductible
• Thermal bags and equipment (delivery drivers) — 100% deductible
• Business meals (if you transport clients) — 50% deductible
• Safety equipment (reflective vest, first aid kit) — 100% deductible
• Car rental if renting for gig work — Business portion

HST Registration: When You Must Register

If your gross rideshare income exceeds $30,000 in any 12-month period, you must register for an HST/GST account and charge HST on your rides. Uber typically collects and remits HST on your behalf for ridesharing — but delivery drivers on DoorDash or SkipTheDishes may need to register separately. See our HST/GST guide for details.

T2125: The Form You Need to File

All business income and expenses for gig workers are reported on form T2125 (Statement of Business or Professional Activities). This form calculates your net business income and feeds into your T1 personal return. You complete one T2125 per business activity — so if you do both Uber and DoorDash, you may file two forms, or combine them if they share the same vehicle and phone expenses.

• Line 13499 — Gross business income (before expenses)
• Line 13500 — Net business income (after deducting eligible expenses)
• Schedule 8 — CPP contributions on self-employment income (you pay both employee and employer portions at 5.95% each)
• Line 22200 — Deduction for CPP contributions on business income

Common Mistakes Gig Workers Make at Tax Time

• Not reporting all platform income — Uber, Lyft, and others report to CRA directly
• Using personal credit card for all expenses — Opens the door to missed deductions and CRA questions
• No mileage log — Without records, the CRA can deny vehicle deductions entirely
• Forgetting CPP contributions — Self-employed pay double CPP (both shares): budget for it
• Missing the $30,000 HST threshold — Ignoring it leads to back-assessed HST plus penalties