Delivery driver taxes in Ontario: what Uber Eats, DoorDash and Skip couriers can claim
Uber Eats, DoorDash and Skip couriers are self-employed. What to report, the car and phone costs you can claim, when HST applies and how much to set aside.
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If you deliver for Uber Eats, DoorDash, Skip or Instacart, you aren't an employee. In the CRA's eyes you're running a small business, even if it's a few evenings a week. That means nothing is withheld from your payouts, and it's up to you to report the income, claim the costs and keep money back for April.
The upside: every legitimate cost of making deliveries lowers the profit you're taxed on. Most couriers under-claim because the costs are buried on a personal card next to groceries and Netflix.
You're self-employed: what that means at tax time
Your delivery earnings go on Form T2125, Statement of Business or Professional Activities, filed with your regular personal return. You report your gross payouts, including tips and bonuses, then subtract your business expenses. What's left is your profit.
On that profit you pay:
- Income tax at the same federal and Ontario rates as a salary.
- CPP, both halves. For 2026 that's 11.9% of net self-employment earnings between $3,500 and $74,600, plus 8% CPP2 above that up to $85,000.
Since 2024, delivery and rideshare platforms report your earnings to the CRA every year. Keep your own numbers so they match the platform's annual summary.
What delivery drivers can claim
| Expense | What counts | How much |
|---|---|---|
| Car costs | Gas, insurance, maintenance, repairs, licence and registration | Business share, by kilometres |
| Car lease or loan interest | Lease payments or interest on a car loan | Business share, with CRA limits |
| Car depreciation | Capital cost allowance (CCA) on a car you own | Business share |
| Phone and data | Monthly plan, a phone mount, a car charger | Business share of the plan, full cost of delivery-only items |
| Delivery gear | Insulated bags, a delivery backpack, hi-vis vest | Full cost |
| Bike or e-bike | Repairs, tubes, lights, locks | Full cost if used only for deliveries |
| Parking | Paid parking while on a delivery | Full cost |
| Platform fees | Any fees the app deducts from your payouts | Full cost |
Parking tickets and fines are not deductible.
The car: keep a logbook
The car is where most of your deductions are, and where the CRA looks hardest. You can only claim the business share:
business share = delivery kilometres ÷ total kilometres for the year
Record your odometer on January 1 and December 31, and log delivery trips as you go. Your app's trip history helps, but it often shows only on-order distance, not the drive back. A full-year log is best. After that, the CRA accepts a representative three-month sample log, as long as your driving pattern stays similar.
If 60% of your kilometres are deliveries, you claim 60% of your gas, insurance, maintenance and the rest.
HST: delivery vs. rideshare
This is the part couriers get wrong most often.
- Food and parcel delivery only: you follow the small supplier rule. You don't have to register for HST until your taxable sales pass $30,000 over four consecutive calendar quarters.
- Driving passengers (Uber, Lyft): commercial ride-sharing is treated like a taxi business. You must register for HST from your first ride, whatever you earn.
If you do both, your rideshare registration matters for your delivery income too. Check the CRA's guidance on commercial ride-sharing for your exact mix.
Once registered, you charge 13% HST in Ontario, and you can claim input tax credits for the HST you paid on business costs like gas and repairs. Set aside every dollar of HST you collect.
How much to set aside
A delivery driver with $35,000 of payouts and $9,000 of business car and phone costs has $26,000 of profit. On that, plan to keep roughly 15–20% for income tax and CPP. If delivering is on top of a full-time job, use a higher rate, because the extra income is taxed at your top bracket. See how much to set aside for taxes when you're self-employed.
The real problem: one card for everything
Most couriers fill up on the same card they use for groceries, and the phone bill comes out of the same chequing account as rent. At tax time, separating them means scrolling through a year of statements.
Sedir connects the cards you already have, flags likely business costs like gas stations and phone bills, and lets you sort a week of purchases in one go. Rules remember your splits, like 60% of every gas fill-up, so the T2125 totals build themselves while your personal budget stays honest.
General information for Ontario residents, not tax or legal advice. Check with the CRA or an accountant for your situation.
