If you drive for Uber, deliver for DoorDash, or freelance on Fiverr, CRA considers you self-employed — which means no taxes are withheld from your earnings and you’re responsible for income tax, double CPP contributions (~11.9%), and potentially GST/HST. The good news: gig workers can deduct vehicle expenses, phone costs, supplies, and platform fees, often reducing taxable income by 30-50%. The critical distinction to know: rideshare drivers (Uber, Lyft) must register for GST/HST from their very first ride, while delivery and other gig workers only register once they exceed $30,000 in annual revenue.
Gig Work Tax Basics
You’re Self-Employed
Status
Details
Not an employee
No taxes withheld
Self-employed
You handle your own taxes
Business income
Report on T2125
What Platforms Are Covered
Platform
Type
Uber
Rideshare
Lyft
Rideshare
DoorDash
Delivery
Skip the Dishes
Delivery
Instacart
Delivery/shopping
TaskRabbit
Various tasks
Rover
Pet sitting
Fiverr
Freelance
Income Reporting
Report Everything
Source
Report
Platform payments
All of it
Tips
Cash and digital
Bonuses
Sign-up, referral
Reimbursements
May be different
Getting Your Numbers
Platform
How
Uber
Tax summary in app
DoorDash
Tax summary (login)
Others
Year-end statements
Tax Forms
What You’ll Need
Form
Purpose
T2125
Statement of Business Activities
T1
Personal tax return
GST/HST return
If registered
Filing Deadline
Type
Deadline
Self-employed
June 15
Tax owing
Still due April 30
GST/HST
Varies (usually annual)
Vehicle Expenses
Biggest Deduction for Drivers
Method
How
Actual expenses
Track all costs × business %
Detailed records
Required either way
Calculating Business Use
Step
Action
Track all km
Odometer readings
Track business km
For gig work
Calculate %
Business ÷ Total
Example
Calculation
Total km (year)
25,000
Gig work km
15,000
Business %
60%
Deductible Vehicle Costs
Expense
Apply Business %
Gas
60% of total
Insurance
60%
Maintenance/repairs
60%
Car wash
60%
Parking (work)
100%
Licensing
60%
Interest on car loan
60%
Depreciation (CCA)
Complex calculation
Example Calculation
Annual Vehicle Costs
Amount
Gas
$4,000
Insurance
$2,000
Maintenance
$1,000
Total
$7,000
Business %
60%
Deduction
$4,200
Other Deductions
Phone
Calculation
Annual phone bill
$1,200
Business use estimate
50%
Deduction
$600
Supplies
Item
Examples
Delivery bags
Hot/cold bags
Phone mount
For navigation
Chargers
In-car
Cleaning supplies
For vehicle
Home Office
If You
Then
Use home for admin
May qualify
Calculate
Workspace % of home
(Less common for gig work)
GST/HST Rules
Critical Distinction
Gig Type
GST/HST Required
Rideshare (Uber, Lyft)
From first ride
Delivery (DoorDash, etc.)
If over $30K
Other services
If over $30K
Why Rideshare is Different
CRA View
Rideshare = taxi
Taxi services must collect GST/HST
No $30K threshold
Required from day one
How It Works
Uber Example
Gross fares
$20,000
GST (5%)
$1,000 collected
ITCs (from expenses)
-$400
Net GST owing
$600
Input Tax Credits (ITCs)
Claim GST/HST Paid On
Gas
Yes
Phone bill
Yes (business %)
Supplies
Yes
Vehicle purchase
Complex
CPP Contributions
Self-Employed CPP
Difference
Employee
Self-Employed
Rate
~5.95%
~11.9% (both portions)
On
Income over $3,500
Net business income
Calculation Example
Net Income
$30,000
Minus exemption
$3,500
CPP base
$26,500
CPP owing (~11.9%)
~$3,150
Quarterly Installments
When Required
If
Then
Tax owing $3,000+
Pay quarterly
New to gig work
May not be required year 1
Dates
Quarter
Due
Q1
March 15
Q2
June 15
Q3
September 15
Q4
December 15
Record Keeping
Essential Records
Record
How
Mileage log
App or notebook
Receipts
Photo or paper
Platform statements
Download/save
Bank statements
Business transactions
Mileage Tracking Apps
App
Features
MileIQ
Auto-tracking
Stride
Free, plus expenses
QuickBooks
Full accounting
Platform-by-Platform Tips
Uber/Lyft
Tip
Details
Register GST/HST immediately
Required
Track deadheading
Counts as business km
Save all vehicle receipts
Big deductions
DoorDash/Skip/Instacart
Tip
Details
GST/HST at $30K
Track earnings
Thermal bags
Deductible
Mileage is key
Track every trip
Tax Calculation Example
DoorDash Driver
Item
Amount
Gross DoorDash income
$25,000
Vehicle expenses (business %)
-$4,500
Phone (business %)
-$600
Supplies
-$200
Net income
$19,700
Taxes On $19,700
Income tax (~20% effective)
~$3,940
CPP (~11.9% on $16,200)
~$1,930
Total tax
~$5,870
Without deductions: $25K would be taxed.
The Bottom Line
Gig income is fully taxable, but smart deductions can significantly reduce what you owe. Start a mileage log from day one (apps like MileIQ make this easy), save every receipt, and register for GST/HST immediately if you do rideshare. File your return by June 15 as self-employed, but pay any taxes owing by April 30 to avoid interest. If your net income exceeds $3,500, budget for the double CPP hit — it’s often the biggest surprise for new gig workers. Use tax software that handles T2125 business income.