What taxes do Uber drivers pay in Canada?

Uber and other ride-share drivers in Canada are self-employed, so they report their fares and tips on Form T2125, pay income tax and both halves of the Canada Pension Plan contribution, and must register for GST/HST from their very first fare. The $30,000 small supplier threshold does not apply to ride-sharing. A platform can be authorized to handle some GST/HST steps for a driver, but the CRA says it is still the driver's responsibility to make sure GST/HST is charged and remitted on every fare.

Updated October 29, 2026. Figures from the CRA pages linked below.

GST/HST for ride-share drivers

  • Register from the first dollar: since July 1, 2017, ride-sharing arranged through an app is generally treated as a taxi business, and drivers must register and charge GST/HST even if revenue is under $30,000.
  • Timing: your GST/HST effective date is the date of your first fare. You have until the 30th day after that to apply, and if it is later than that you must backdate the registration.
  • What you register for: a business number and a GST/HST account. In BC the rate on fares is GST at 5%.
  • Who remits: a ride-sharing company authorized by the driver may agree to carry out some GST/HST requirements on the driver's behalf. Check your platform statements to confirm what is being collected and remitted for you.
  • Input tax credits: drivers can generally claim credits on fuel, repairs, maintenance and vehicle leases or purchases, allocated between business and personal use.

Food delivery is treated differently

  • Not ride-sharing: the no-threshold rule applies to carrying passengers. In the CRA's own example, a driver with ride-share and food delivery sales totalling under $30,000 charges GST/HST only on the ride-share fares.
  • When delivery becomes taxable: GST/HST applies to delivery as well once combined sales exceed $30,000, or if the driver extends the registration to cover delivery.

Reporting income on Form T2125

  • Report everything: all fares and tips go on Form T2125, using industry code 485310 (taxi service) for most vehicles.
  • Platform fees: amounts the platform holds back may be deductible expenses.
  • Digital platform reporting: since January 1, 2024, platform operators report seller information to the CRA, including amounts paid by quarter and fees charged, and must give each seller a copy by January 31 of the following year.

Vehicle expenses and your logbook

  • Business share only: you deduct the part of gas, insurance, licence and registration, interest, and maintenance and repairs that relates to business kilometres.
  • Logbook: record the date, destination, purpose and kilometres of each business trip, plus odometer readings at the start and end of the year.
  • Simplified logbook: after one full 12-month base year, a three-month sample can be used if results stay within 10% of the base year.

CPP on self-employment

  • Both halves: self-employed people pay the employee and employer shares on their return. For 2026 that is 5.95% each on earnings between the $3,500 basic exemption and $74,600, up to $8,460.90.
  • CPP2: earnings between $74,600 and $85,000 attract a further 4% each side, up to $832 for the self-employed.

Worked examples (estimates for illustration)

  • Kelowna driver, rides and delivery: ride-share fares $24,000 plus food delivery $4,000 = $28,000, under $30,000. GST on rides: $24,000 x 5% = $1,200. No GST on delivery unless the registration is extended to it.
  • West Kelowna vehicle claim: gas $4,500 + insurance $2,400 + maintenance $1,100 + licence $300 = $8,300. Business use: 18,000 of 25,000 km = 72%. Deductible: $8,300 x 72% = $5,976.
  • Vernon driver's CPP for 2026: net self-employment income $30,000. ($30,000 - $3,500) x 11.9% = $26,500 x 11.9% = $3,153.50.

FAQ

Do I need a GST number to drive for Uber?
Yes. Ride-share drivers must register for GST/HST from their first fare, regardless of income.

Does Uber remit GST for me?
A platform can be authorized to handle some steps, but the CRA says you remain responsible for confirming GST/HST is collected and remitted.

Do Uber Eats drivers need to register?
Based on the CRA's example, delivery on its own is generally subject to the regular $30,000 small supplier test.

Every situation is different, so talk to your accountant about your specifics.

Related: CRA mileage log requirements

Sources: CRA: GST/HST and commercial ride-sharing services; CRA: Sharing economy; CRA: Register as a rideshare driver or taxi operator; CRA: GST/HST Memorandum 2-2, Small suppliers; CRA: Ride sharing; CRA: Reporting rules for digital platform operators; CRA: Motor vehicle records; CRA: Calculating motor vehicle expenses; CRA: CPP contribution rates; CRA: CPP2 rates and maximums.

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