Delivery Driver Taxes
DoorDash, Uber Eats and Skip drivers: what to report, vehicle and bike deductions, CPP and the GST/HST threshold.
The short version
- Delivery drivers on DoorDash, Uber Eats, SkipTheDishes, Instacart and Amazon Flex are generally self-employed. Earnings go on form T2125, and you pay both halves of CPP on the profit.
- Unlike rideshare drivers, delivery drivers follow the normal GST/HST rule: register once your taxable sales pass $30,000 over four consecutive calendar quarters.
- Your biggest deduction is the business share of your vehicle, which needs a logbook. Bike and e-bike couriers deduct their bike, gear and repairs.
- Tips are business income too, whether they come through the app or in cash at the door.
- The apps report your earnings to CRA every year under the digital platform reporting rules.
Delivery Driver Taxes in Canada
Delivery driving is a business where the product is your time and the main asset is your car, your bike or your legs. CRA treats it like any other small business, which means the money that hits your account isn't all yours: some is CPP, some is income tax, and the rest pays for the gas you already burned. The upside is that every legitimate cost comes off before tax.
Delivery vs Rideshare: The GST/HST Difference
| Food and parcel delivery | Rideshare (passengers) | |
|---|---|---|
| Must register for GST/HST | Once taxable sales pass $30,000 over four consecutive calendar quarters | From the first fare |
| Can register voluntarily below $30,000 | Yes | Not applicable |
| Income tax and CPP | Same rules: self-employed, T2125 | Same rules: self-employed, T2125 |
If you do both, the rideshare rule wins: you need a GST/HST number from your first passenger, and once registered you also charge GST/HST on your delivery work. See Uber and rideshare taxes for the passenger side, and the small supplier rule for the $30,000 test.
Reporting Delivery Income
Report your gross delivery earnings, including tips, bonuses and incentives, on form T2125. Use each app's annual earnings summary, and add cash tips you received at the door, which the app doesn't know about but CRA expects. See cash income and taxes.
How much tax will I owe on delivery income?
Enter your earnings from each app, your kilometres and your province. The assistant estimates the vehicle deduction, the tax and CPP, and how close you are to the GST/HST threshold.
The Vehicle Deduction
For a car driver, the vehicle is everything. You can deduct the business-use share of:
- Gas, oil changes, repairs, tires, car washes
- Insurance (tell your insurer you deliver; a denied claim costs far more than the premium)
- Licence and registration fees
- Lease payments (up to the monthly limit) or interest on a car loan
- Capital cost allowance on the car you own; see capital cost allowance explained
The business-use share comes from your mileage log: kilometres driven for deliveries, including driving to the restaurant or warehouse, divided by total kilometres for the year. A driver who logs 18,000 business kilometres out of 25,000 deducts 72% of the car costs. Without a log, CRA can and often does cut the claim sharply. The details are on vehicle expenses.
Bike and E-Bike Couriers
Bikes, e-bikes, helmets, lights, locks, insulated bags, rain gear and repairs are deductible to the extent they're used for deliveries. A bike or e-bike over $500 generally goes through CCA instead of being deducted all at once. Food you eat on shift isn't deductible, however hungry the job makes you.
Other Deductions
- The business share of your phone and data plan.
- Insulated delivery bags, phone mount, charger, power bank.
- Parking fees while picking up or delivering (not parking tickets).
- Fees charged by the app, if any.
The full list is on business expense deductions.
What It Costs in Tax
| Ontario, 2026, no other income | Net profit $21,000 | Net profit $30,000 |
|---|---|---|
| Income tax | about $345 | about $2,455 |
| CPP (both halves) | about $2,080 | about $3,150 |
| Total | about $2,430 | about $5,610 |
At these income levels, CPP is the bigger bill, and it's the one new drivers forget. Delivering on top of a job? Then the profit is taxed at your marginal tax rate, plus CPP, and you should set aside more; see side hustle taxes. Run your own numbers on the self-employed tax calculator.
Get your GST/HST set up right the first time
The GST/HST SmartFile runs both $30,000 tests on your sales, compares the quick method with the regular method, and fills in form GST74 if the quick method wins.
Ontario's Platform Worker Law
Since July 1, 2025, Ontario's Digital Platform Workers' Rights Act guarantees delivery and rideshare workers at least the general minimum wage for their engaged time, plus other protections, whether or not they're employees. It's an employment-standards rule, not a tax rule: for CRA you remain self-employed. The broader test is on contractor vs employee.
Delivery Driver Checklist
- Record your odometer on January 1 and December 31, and log delivery kilometres every shift.
- Keep gas and repair receipts, or at least the card statements.
- Download every app's annual summary in January.
- Write down cash tips each shift.
- Track your total earnings across apps against the $30,000 GST/HST threshold.
Return Check checks your vehicle percentage and income against your app summaries before you file.
Delivery Driver Tax Questions
Do DoorDash and Uber Eats drivers pay tax in Canada?
Yes. Delivery drivers are generally self-employed and report their earnings, including tips, on form T2125. They pay income tax and both halves of CPP on the net profit.
Do delivery drivers need to register for GST/HST?
Only once taxable sales pass $30,000 over four consecutive calendar quarters. Drivers who also carry passengers for a rideshare app must register from their first fare.
What can delivery drivers deduct?
The business-use share of vehicle costs and capital cost allowance, phone and data, delivery bags and equipment, parking and app fees, supported by a mileage log and receipts.
Are delivery tips taxable?
Yes. Tips received through the app or in cash are part of your business income.
Do delivery apps send my income to CRA?
Delivery platforms are covered by the reporting rules for digital platform operators, so your earnings are reported to CRA each year, and you receive a copy.
Sources: CRA, Tax obligations for commercial ridesharing and delivery services; Gig economy; Ontario, Rights and protections for digital platform workers. Checked October 2026. Tax figures come from our 2026 Ontario rules engine. Some delivery arrangements (for example, courier companies that set your routes and hours) can make a driver an employee; this page assumes app-based, self-employed delivery.
Last reviewed October 4, 2026 against CRA and Government of Canada sources. How we check our facts.