Driving for Uber, Lyft, or DoorDash in Vancouver comes with tax obligations that most drivers don't fully understand — until they get a surprise bill from the CRA. The good news is that rideshare drivers are also entitled to significant deductions that can dramatically reduce what you owe. This guide covers everything you need to know.
As an Uber, Lyft, or DoorDash driver, you are considered self-employed by the CRA — not an employee. This means no tax is withheld from your earnings, you are responsible for reporting all income and paying all tax owing, and you must file a T1 return with a Schedule T2125 (Business Income) attached.
You must report all income earned from rideshare and delivery platforms including:
Uber and other platforms deduct their service fee before paying you. You must report your gross earnings — the full fare before Uber's cut — not just the amount deposited in your bank account. You then deduct the platform fee as a business expense. Your annual tax summary from Uber shows your gross earnings.
This is where most Vancouver rideshare drivers get caught off guard. Unlike most self-employed people who only register for GST/HST once they earn $30,000, rideshare drivers must register for GST/HST from the very first dollar they earn — with no small supplier exemption.
| Type of Work | GST/HST Threshold | Registration Required |
|---|---|---|
| Most self-employed (freelancers, consultants) | $30,000 in revenue | Only after threshold |
| Rideshare drivers (Uber, Lyft) | $0 — first dollar | Immediately upon starting |
| Delivery drivers (DoorDash, Uber Eats) | $30,000 in revenue | Only after threshold |
This rule applies specifically to rideshare (passenger transportation). If you only do food delivery, the regular $30,000 threshold applies. If you do both, you must register for GST/HST immediately for the rideshare portion.
Once registered, you collect GST/HST on your fares and remit it to the CRA — but you can also claim Input Tax Credits (ITCs) to recover the GST/HST you paid on business expenses like gas, car washes, and phone bills. This reduces your net GST/HST owing significantly.
This is where you can save a significant amount of money. As a self-employed driver, you can deduct all reasonable expenses incurred to earn your rideshare income.
Gas, oil changes, tires, repairs, insurance, and registration — based on the percentage of kilometres driven for business vs personal use.
You can claim Capital Cost Allowance on your vehicle — depreciating its value over time as a business asset.
The percentage Uber or Lyft takes from each fare is a fully deductible business expense — deduct it from your gross earnings.
The portion of your phone bill used for driving (the app, navigation, communication) is deductible — typically 50–80% for active drivers.
Keeping your vehicle clean for passengers is a legitimate business expense — fully deductible.
If you provide amenities to passengers, these costs are deductible as business expenses.
Safety equipment and phone mounts used for your driving business are deductible in the year purchased or depreciated over time.
The cost of having PC Tax Solutions prepare your return and handle your GST/HST filings is fully deductible.
Because your vehicle is used for both business and personal purposes, the CRA requires you to keep a mileage log to calculate the business-use percentage of your vehicle expenses.
Your mileage log must record:
For Uber drivers, your app records all trip kilometres while you have a passenger. However, you can also claim kilometres driven while waiting for or driving to pick up a passenger — these are business kilometres too. Keep a record of your total kilometres driven for the year (from your odometer) and your business kilometres (from Uber's annual summary plus your log for dead kilometres).
Uber provides an annual tax summary showing your gross earnings, total trips, and online hours. Download this from the Uber Driver app under Account → Tax Information before your tax appointment. Lyft provides a similar summary. This is your primary income document.
This depends on your total income from all sources, but here's a simplified example for a Vancouver Uber driver earning $40,000 gross from rideshare:
On $20,460 of net income, your combined federal and BC provincial tax would be approximately $3,000–$4,000 — plus CPP contributions on self-employment income of roughly $2,100. Keeping good records and claiming all eligible deductions makes a real difference.
Self-employed individuals pay both the employee and employer portions of CPP — approximately 11.9% of net self-employment income in 2025, up to the maximum. This is on top of your income tax. Many new rideshare drivers are surprised by this additional amount owing at tax time.
PC Tax Solutions works with Uber, Lyft, and DoorDash drivers throughout Vancouver. We handle your T1, your Schedule T2125, and your GST/HST filings — so you can focus on driving. Book a free consultation today.
Book a Free ConsultationYes — rideshare drivers must register for a GST/HST account before they start driving or as soon as they begin. There is no minimum earnings threshold for rideshare. Contact the CRA or call us and we'll help you get registered quickly.
Because you do rideshare (Uber), you must be GST/HST registered immediately. Once registered, all your self-employment income — including DoorDash — falls under your GST/HST account. You collect and remit GST/HST on rideshare fares, and claim Input Tax Credits on your business expenses.
Not directly — you cannot deduct loan payments. However, you can deduct the interest on a vehicle loan (proportional to business use) and claim Capital Cost Allowance (CCA) on the vehicle itself. If you lease your vehicle, the lease payments are deductible based on your business-use percentage.
Your rideshare income is your primary income and is taxed as self-employment income. You'll file a T1 with Schedule T2125, pay income tax on your net earnings, and pay CPP contributions. You may also be eligible for the Canada Workers Benefit if your net income is below the threshold.
Some platforms issue T4A slips showing payments made to you. Include this on your T1 return, but make sure you're reporting the correct gross amount from your annual tax summary — the T4A may show a net amount after platform fees. Bring both documents to your tax appointment.