Uber and Uber Eats drivers in Canada are self-employed, so you report your fares and expenses on Form T2125 with your T1 return. You claim the business-use share of your actual vehicle costs — fuel, insurance, maintenance, repairs, licence, lease or interest, and capital cost allowance — multiplied by your business-use percentage, plus your phone and data plan, Uber's commission, parking, tolls, and delivery supplies. Canada has no flat per-kilometre method for the self-employed, so the CRA requires a mileage log to prove that percentage. Rideshare drivers must also register for and collect GST/HST from their very first fare. Start by working out your business-use share with our mileage calculator.
If you drive for Uber or deliver for Uber Eats in Canada, the CRA considers you self-employed — you're a sole proprietor running a business. That means you must file a T2125 (Statement of Business or Professional Activities) with your T1 personal tax return every year.
Here's the problem: many drivers overpay taxes because they don't know what they can deduct. Others underpay because they don't track properly and get caught in a CRA audit. Either way, it costs you money.
This guide covers exactly what you can deduct on your T2125, how to track mileage to satisfy the CRA, GST/HST obligations for rideshare vs. delivery drivers, and how to avoid the most common audit triggers.
Everything here applies to both Uber rideshare and Uber Eats delivery, with the differences called out where they matter — especially for GST/HST.
Key Facts for Uber / Uber Eats Drivers
- You're self-employed — not an employee of Uber
- Filing deadline: June 15 for self-employed filers (but any balance owing is still due April 30)
- GST/HST: Rideshare drivers must register from their first fare, regardless of income. Delivery-only drivers: only above $30,000. Jump to GST/HST rules →
- You need a mileage log — CRA requires it. No log = no deduction. Jump to mileage log requirements →
- Industry code for T2125: 485310 (Taxi and Ridesharing Service)
- Vehicle claim method: actual costs × business-use %. The CRA per-km rate (73¢/67¢ in 2026) is an employer-to-employee allowance ceiling, not a self-employed deduction method — see full rate guide
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What Changed for the 2026 Tax Year
The figures behind this form are reset every year. Here is where they stand for the 2026 tax year — the return self-employed drivers file by June 15, 2027, with any balance owing due April 30, 2027.
| What | 2026 figure | Why it matters to a driver |
|---|---|---|
| CRA per-kilometre allowance rate | 73¢/km first 5,000 km, 67¢/km after (+4¢ in Yukon, NWT, Nunavut) | Useful as a sanity check on what your driving is worth — but it is the tax-free ceiling for an employer paying an employee. As a self-employed driver you claim actual costs instead. |
| CPP on self-employment income | 11.90% on net income between $3,500 and $74,600 — max $8,460.90 | You pay both halves. This is usually the bill that surprises first-year drivers, and it is calculated on net income, so every legitimate deduction lowers it. |
| CPP2 (second tier) | 8.00% on net income between $74,600 and $85,000 — max $832 | Only bites if you clear the first ceiling. Full-time drivers in a strong year do. |
| Filing and payment dates | File by June 15; balance owing due April 30 | The later filing deadline does not delay payment. Interest runs from May 1 on anything unpaid. |
Sources: CRA automobile allowance rates and CPP contribution rates and maximums, checked 7 September 2026. You can deduct one half of your CPP contributions on your T1. Estimates — confirm with your tax professional.
What Expenses Can Uber / Uber Eats Drivers Deduct?
The good news is that most costs of running your rideshare or delivery business are deductible. The key is tracking them properly and keeping receipts.
Vehicle Expenses (Usually the Biggest Deduction)
There is one method for claiming business vehicle costs on a T2125: actual expenses, prorated by business use. Track every vehicle-related cost — fuel, insurance, licence and registration, maintenance, repairs, car washes, lease payments or loan interest, and Capital Cost Allowance (CCA / depreciation) — then multiply the total by your business-use percentage (business km ÷ total km for the year). Parking incurred for the business and supplementary business vehicle insurance are claimed in full rather than prorated.
You total these in Chart A of the T2125 and the allowable amount carries to line 9281 (motor vehicle expenses, not including CCA). CCA for passenger vehicles is claimed at a 30% declining balance rate (Class 10 or 10.1). There are CRA maximums on lease payments and loan interest you can claim.
This is the single most common mix-up on this form, and it usually comes from reading American advice. US filers can choose the IRS standard mileage rate instead of actual costs. Canada has no equivalent for self-employed people. The CRA per-kilometre rate you have probably seen — 73¢/km for the first 5,000 km and 67¢/km after in 2026 — is the ceiling for a tax-free allowance an employer pays an employee. You are not your own employer as a sole proprietor, so it is not a deduction you can claim on your T2125. Your logbook is what proves your business-use percentage, not a rate you multiply kilometres by. See our CRA mileage rate guide for who the rate does apply to.
Your percentage is business kilometres divided by total kilometres for the year, so the two things worth being careful about are counting all your business kilometres (including the deadhead driving covered below) and keeping honest total-kilometre odometer readings. A driver who logs only passenger-occupied trips understates the business share and quietly overpays.
Whether you use the actual expense method or the simplified rate, the CRA requires a vehicle logbook. This is the #1 audit trigger for rideshare drivers — if you can't produce a log, the CRA can deny your entire vehicle deduction.
Phone & Data Plan
Your phone is essential for driving — you need it for the Uber app, navigation, and communication with riders. Deduct the business-use percentage of your total phone and data plan costs. For active drivers, this is typically 50–80%.
Keep your phone bill as documentation. You don't need to calculate exact minutes — a reasonable estimate of business-use percentage is acceptable.
Uber Fees & Commissions
Uber's service fee (typically 25–30% of each fare) is fully deductible as a commission expense on your T2125. These fees are documented in your Uber annual tax summary, which you can download from your Uber driver dashboard.
Booking fees, airport surcharges, and any other platform fees Uber deducts from your earnings are also deductible.
Delivery Supplies (Uber Eats)
If you deliver for Uber Eats, you can deduct:
- Insulated delivery bags and hot bags
- Drink holders and cup carriers
- Phone mounts and car chargers
- Any other supplies used specifically for deliveries
Other Deductible Expenses
- Roadside assistance / CAA membership (business-use percentage)
- Parking (while waiting for rides, at airports — not personal parking)
- Tolls (407 ETR in Ontario, bridge tolls, etc.)
- Car washes (business-use percentage — keeping your car clean is part of the job)
- Safety equipment (dashcam, first aid kit)
- Accounting and tax preparation fees
- Bottled water, mints, phone chargers provided for passengers
What You Cannot Deduct
- Traffic tickets or fines — never deductible, regardless of circumstances
- Personal use of vehicle — only the business-use portion is deductible
- Clothing — unless it's a uniform required by the platform (which Uber doesn't have)
- Commute to your "starting spot" — driving from home to the area where you start accepting rides is generally considered personal use
How to Track Mileage (CRA Requirements)
The CRA requires a vehicle logbook. Here's exactly what must be recorded:
For each business trip:
- Date of the trip
- Destination (where you drove)
- Business purpose (pickup, delivery, etc.)
- Kilometres driven
For the year:
- Odometer reading at the start of the fiscal year (January 1)
- Odometer reading at the end of the fiscal year (December 31)
- Total kilometres driven (business + personal)
- Business-use percentage calculation
Uber provides trip logs, but those only cover when a passenger is in the car (or when you're actively delivering). You also need to track deadhead mileage: driving to pickup locations, driving between rides while waiting for the next request, and driving home at the end of a shift. This is business mileage that Uber doesn't record for you.
If you've kept a detailed logbook for a full 12-month base year, you may be able to track only a 3-month sample period in subsequent years. If your business-use percentage in the 3-month sample is within 10 percentage points of the same period in your base year, the CRA may accept the base-year percentage for the full year. This is still a valid method in 2026.
The easiest approach: use a mileage tracking app that integrates with Google Maps to auto-calculate distances. ExpenseBot imports trips and calculates distances automatically — meeting all CRA documentation requirements. Digital records (including Google Sheets) are accepted by the CRA.
Your Gmail already has every Uber receipt.
ExpenseBot scans it automatically, categorizes expenses to T2125 line items, and tracks mileage — all in one Google Sheet.
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Line by Line: Which Uber Expense Goes in Which T2125 Box
Most of the work of a T2125 is deciding which box each cost belongs in. These are the Part 4 lines a rideshare or delivery driver actually uses, with the official CRA line names.
| Your cost | T2125 line | Note |
|---|---|---|
| Fuel, insurance, maintenance, repairs, licence, lease or interest | 9281 — Motor vehicle expenses (not including CCA) | Totalled in Chart A, then × business-use % |
| Vehicle depreciation | 9936 — Capital cost allowance (CCA) | Class 10 or 10.1, 30% declining balance, business-use portion |
| Uber service fee, booking fees, commissions | 8871 — Management and administration fees | Report gross fares as income, deduct the fee separately |
| Phone and data plan | 9220 — Utilities | Business-use portion of the bill, typically 50–80% for active drivers |
| Parking while working, tolls | 9281 — Motor vehicle expenses | Business parking is claimed in full, not prorated |
| Delivery bags, drink carriers, phone mounts | 9275 — Delivery, freight and express | Uber Eats supplies; small items may also sit at 8810 |
| Dashcam, first aid kit, safety equipment | 8810 — Office expenses | Or 9270 (other expenses) — be consistent year to year |
| Accountant, bookkeeper, tax preparation | 8860 — Professional fees | Includes legal and accounting fees |
| Business licence, municipal permit | 8760 — Business taxes, licences and memberships | Rideshare permits where your city requires one |
| Water, mints and supplies for passengers | 9270 — Other expenses | Small but legitimate; keep the receipts |
| Home office used for admin work | 9945 — Business-use-of-home expenses | Calculated in Part 7, deducted after net income before adjustments |
A few of these have more than one defensible home — safety equipment and passenger supplies are the usual examples. The CRA cares that a cost is deducted once, in a sensible category, and that you can produce the receipt. It does not care that you agonised over 8810 versus 9270. What it will not accept is the same expense claimed twice in two different boxes.
Uber pays you net of its fee, so the number that hits your bank account is not your business income. Report the gross fare total from your Uber annual tax summary as income, then deduct the service fee as an expense. Reporting only the net deposit understates both your income and your expenses — and it will not match the figures Uber reports to the CRA.
GST/HST for Rideshare Drivers
This is where it gets tricky — and where many drivers make costly mistakes. The rules are different for rideshare vs. delivery:
Uber Rideshare (Passenger Transportation):
You must register for GST/HST regardless of income. The normal $30,000 small supplier exemption does not apply to taxi and rideshare services. Since July 1, 2017, the CRA classifies all commercial rideshare drivers the same as taxi operators under the Excise Tax Act. You must register within 30 days of your first trip and collect GST/HST on all fares from day one.
Uber Eats Delivery:
The standard $30,000 small supplier threshold applies. If you deliver food only, you need to register for GST/HST once your gross delivery revenue exceeds $30,000 over four consecutive calendar quarters.
The rideshare work makes registration mandatory from your first fare — but registration and collection are two different questions. You charge GST/HST on the rideshare fares straight away. The delivery revenue stays outside the tax until your combined rideshare and delivery sales pass $30,000; from that point you charge on the combined amount. Drivers who assume registering means charging on everything from day one tend to over-collect on their delivery work.
How GST/HST works in practice:
- Uber collects and remits GST/HST on rideshare fares on your behalf — you don't need to add it to each fare manually
- You can claim Input Tax Credits (ITCs) on your business expenses — the GST/HST you paid on gas, phone bills, car repairs, etc. can be claimed back
- Filing frequency depends on your revenue: annual, quarterly, or monthly
- The Quick Method is available for small businesses with revenue under $400,000 — it simplifies the calculation by applying a flat rate to your revenue instead of tracking ITCs on every expense
This is one of the most important reasons to track expenses properly — every GST/HST dollar on a business expense is money you can claim back as an ITC. See our Canadian tax deadlines guide for GST/HST filing dates.
How to Fill Out Your T2125 (Step by Step)
The T2125 form has several sections. Here are the key parts for rideshare and delivery drivers:
Part 1: Identification
- Business name: your legal name (or a registered business name if you have one)
- Industry code: 485310 — Taxi and Ridesharing Service
- Main product or service: "Rideshare transportation" or "Food delivery"
Part 2: Business Income
- Use your Uber annual tax summary for total gross income
- Report the full amount before Uber's fees — you'll deduct those separately as expenses
- Include tips (they're taxable income)
Part 4: Net Income Calculation
- This is where all your deductible expenses are listed by category
- Motor vehicle expenses (line 9281) — usually the biggest category
- Office supplies, phone, Uber commissions, delivery supplies, etc.
Chart A: Motor Vehicle Expenses
- Business km driven in the year
- Total km driven in the year (business + personal)
- Each vehicle expense category, totalled
- The business-use percentage is applied here, and the allowable amount carries to line 9281 in Part 4
Part 7: Business-Use-of-Home
- If you use a room for administrative work (logging trips, managing the Uber app, accounting), you may be able to claim a home office deduction
- Calculate the percentage of your home used for business (sq ft of office ÷ total sq ft)
- Apply that percentage to rent/mortgage interest, property tax, utilities, insurance
ExpenseBot auto-categorizes every expense to the correct T2125 line item, so you can hand the year-end report directly to your accountant or use it to file yourself.
Avoiding a CRA Audit
Rideshare drivers are audited more often than most self-employed Canadians. Here are the top triggers — and how to avoid them:
- No mileage log — The #1 trigger. Without a log, the CRA can deny your entire vehicle deduction. Keep a logbook all year, not just for a few weeks.
- Claiming 100% business use on a personal vehicle — Unless you have a separate vehicle exclusively for rideshare, the CRA won't believe 100% business use. A realistic business-use percentage for full-time drivers is typically 60–80%.
- Expenses wildly disproportionate to income — If you earned $20,000 but claimed $18,000 in expenses, expect scrutiny. Your deductions should be reasonable relative to your income.
- Not reporting all income — The CRA receives income data directly from Uber. Starting in 2025, platforms are required to report gig worker earnings to the CRA by January 31 each year. Don't try to underreport.
- Not registering for GST/HST when required — If you do rideshare, you must register regardless of income. The CRA can (and does) check.
Keep all receipts and tax records for 6 years from the end of the tax year. Digital records are accepted — including Google Sheets with linked receipt images stored in Google Drive. This is exactly what ExpenseBot creates: a Google Sheets expense report with every receipt image linked and stored in your Drive.
Want the tracking handled automatically year-round? Our Uber Driver Tax Tracker imports your earnings and mileage straight from Uber. If you also pull Uber's trip CSV, see how to download and import the Uber CSV for taxes.
Frequently Asked Questions
Do Uber drivers pay taxes in Canada?
What can Uber drivers deduct in Canada?
Do I need to register for GST/HST as an Uber driver?
How do I track mileage for CRA?
Can I claim the CRA per-kilometre rate as an Uber driver?
Can I claim mileage or actual vehicle expenses on a T2125?
What T2125 line do Uber's fees go on?
How much CPP do I pay on Uber income in 2026?
Can CRA audit Uber drivers?
What's the easiest way to track Uber expenses for a T2125?
Tracking Your T2125 by Hand vs. Automatically
| T2125 task | By hand | ExpenseBot (free) |
|---|---|---|
| Mileage log | Write down every trip, including deadhead km, all year | Distances logged via Google Maps, CRA-compliant |
| Fuel & repair receipts | Keep every paper slip and total them at year-end | Captured from Gmail and photos automatically |
| Phone/data split | Estimate the business-use percentage yourself | Bill tracked so the business share is easy to apply |
| CRA-ready T2125 categories | Sort each expense into the right line manually | Mapped to T2125 line items automatically |
| GST/HST tracking | Track ITCs on every expense in a separate sheet | GST/HST paid recorded per expense for ITC claims |
Auto-track your rideshare mileage and expenses free
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Not sure how much your driving is worth? Estimate it first with our rideshare mileage deduction calculator, then let ExpenseBot keep the log going all year.