Filing Taxes as an Uber Eats Driver

As an Uber Eats driver, you are considered to be self-employed. You must report your annual income to the CRA, irrespective of whether you work part-time or full-time, and claim the business portion of expenses to reduce your taxes.

If you’re unsure about whether you require a GST/HST number or which forms you need to file your Uber Eats taxes, we’ve got you covered. In this article, we’ll also cover the different expenses you can deduct from your gross income and how you can use them to calculate your taxable income.

Tax summary report

Uber provides you with an annual tax summary report, which summarizes your gross income, sales taxes charged, on-trip mileage, tips, and possible expenses you can claim as deductions. You can access this report in your Uber profile under the tax documents section.

You’ll also receive a monthly tax summary report, which will give you an idea of how much tax you should keep aside for remittance purposes. Generally, keeping 20% to 25% of your total income aside is wise to ensure that you have sufficient money to pay your taxes.

If you drive in Quebec, you’ll only receive an annual tax summary report for the previous year in February.

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List of possible tax deductions

As an independent contractor, you can claim certain expenses incurred for running your Uber Eats business and pay lower taxes. You can only claim the business-use portion of expenses if you use your vehicle for both personal and business travel. To ascertain your business percentage, you must consider the following:

• Your business mileage. This includes the kilometres driven during your Uber Eats’ or business hours. The Uber on-trip mileage only includes the distance travelled from the point you accept the order to the customer's location. So, you should either keep a written record of any further kilometres driven during your work hours or use an app like Driversnote for accuracy.
• Total kilometres driven in the year

Here’s a list of expenses you can claim to maximize your tax deductions.

Vehicle expenses

• Fuel
• Electricity costs on zero-emission vehicles
• Interest paid on car mortgage
• Lease payments
• Capital Cost Allowance (CCA) to claim a portion of your vehicle’s undepreciated cost
• Insurance costs
• Registration and license costs

Vehicle repairs and maintenance

• Filter change
• Oil change
• Antifreeze
• Brake repairs
• Car washes
• Tire change and/or rotation
• Installation of tires
• Car service
• Inspection
• Car detailing

Fees and charges

• Uber Eats service charges

Phone expenses

• Internet costs
• Cell phone plan

Office supplies

• Pens, pencils, highlighters, markers
• Paper
• Ink cartridge
• Folders
• Paper clips

Car accessories

• Phone mount
• Charger
• Headsets

Other expenses

• Toll charges
• Parking fees
• Insulated blankets, backpacks, coolers or bags
• Roadside support
• Subscription fees
• Accounting or taxation services
• Bank charges

GST/HST number for Uber Eats drivers

When your income goes over $30,000, you must collect GST/HST on your delivery services and remit net taxes to the CRA based on your reporting period. You must register for your GST/HST number within thirty days of crossing the $30,000 threshold. If your net GST/HST payable is at least $3,000 in the current and last fiscal year ($1,800 for Quebec), you must make quarterly instalment payments in the current year.

To reduce your net taxes payable, you can subtract the taxes paid on your business-related expenses (input tax credits; ITCs) from the taxes collected on delivery orders.

Tax forms and deadlines to file your tax return

Uber Eats’ drivers must enter their income and eligible expenses on Form T2125 (Form TP-80-V if you’re in Quebec) and attach it to their T1 return. The deadline to file your tax return is June 15. However, you must remit taxes by April 30 to avoid any penalties.

If you registered for a GST/HST number, it’s your obligation to file and pay net taxes depending on your reporting period (annually, quarterly, or monthly).

Calculating your taxable income using Form T2125

Your T2125 or TP-80-V form helps you determine your taxable income and the income tax you owe to the CRA. Not all sections will be relevant to you as an Uber Eats driver.

Business income

Enter the information about yourself and your business in Part 1 (identification).

In Part 3A (business income), enter your gross earnings, inclusive of GST/HST collected.

You then enter your income earned exclusive of GST/HST in field 3C. For example, if you’re based in ON, and earned gross earnings of $20,000, and your GST/HST collected was $2,600, the amount you enter will be $17,400.

Enter any tips you’ve received as other income in Part 3C (gross business or professional income). For example, if you earned tips of $2,000 in the fiscal year, enter $19,400 as your gross income in line 8299 of Part 3C, and line 4A of Part 4.

Business expenses

All business expenses that you incurred as an Uber Eats driver should be included in Part 4 (net income [loss] before adjustments). For example, if you incurred business-related interest and bank charges of $2,400, accounting costs of $120, and office stationery of $60, your total business expenses will be $2,580.

You also need to add the capital cost allowance (CCA) and motor vehicle expenses (discussed below) in Part 4.

Fill out Chart A (motor vehicle [MV] expenses) to calculate the allowable motor vehicle costs you can deduct from your income.

This section also requires information about your business kilometres and total kilometres driven in the year. For example, if you drove Uber Eats for 5,000 kilometres in the year, and your total kilometres driven were 10,000, you can only claim 50% of your expenses. If your total MV expenses (including fuel, license costs, repairs and maintenance, and insurance costs) were $2,000, you would enter 50% of these costs, that’s $1,000 in line 16 of Chart A, as well as on line 9281 of Part 4.

Use Area A (calculation of capital cost allowance [CCA]) claim to ascertain how much of your vehicle’s undepreciated cost you can claim as a deduction. For example, you use a car that belongs to Class 10 with a 30% CCA rate. If its undepreciated value is $10,000, you will enter $3,000 ($10,000 * 30%) as total CCA under column 18. However, you can only claim the business use of your vehicle, which will be $1,500 (50% of $3,000) and enter it on line 4U of Part 4.

Net income (loss) before adjustments

You can calculate your net income (loss) by deducting your total expenses (line 9368) from your gross business income (line 4A). Since your gross business income above was $19,400 and your total business expenses were $5,080, your taxable income would be $14,320 ($19,400 - $5,080).

Enter this amount on Form T1 and use it as a base for calculating your taxes payable.

Canada Pension Plan (CPP) contributions

If you’re self-employed and earn over $3,500 in a fiscal year, you must contribute both the employer and employee portion to CPP. If your income is up to $68,500 (first earnings ceiling), you can contribute up to $7,735 at 11.9%.

In January 2024, the CRA introduced CPP2 to enable individuals to contribute more. For this purpose, they added a second earnings ceiling of $73,200, allowing you to contribute an additional amount of $376 ([$73,200 - $68,500] * 8%).

These contributions not only secure your financial future but also help you claim tax deductions or credits.

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