Tax and accounting for rideshare and delivery drivers
Rideshare drivers must register for GST from their first paid trip, whatever they earn, because CRA treats ridesharing as a taxi business. Food and parcel delivery drivers follow the usual $30,000 small-supplier rule. Either way, you report your driving income on form T2125, claim the business share of your vehicle costs, and pay both halves of CPP.
What we handle for drivers
The returns every self-employed driver files, plus the parts that are particular to driving for an app. A senior manager reviews the work, and you can ask questions all year.
GST registration and returns
We register you for GST when you need it, work out the GST already inside your fares, claim back the GST you paid, and have your returns prepared and filed on the agreed schedule once your records are in.
How GST works for driversYour tax return
Your personal return with the self-employed schedule (form T2125): fares, delivery pay and tips in, platform fees and vehicle costs out.
About tax returnsVehicle costs and logbook
A logbook that stands up, the business-use share of every car cost, and capital cost allowance on the vehicle itself.
Vehicle expensesCPP and instalments
Self-employed drivers pay both halves of CPP, and CRA may ask for quarterly instalments. We work out what to set aside each month.
Income tax calculatorPlatform tax summaries
We check each app's annual summary against your bank deposits and records, so the income on your return matches what CRA receives.
About the annual summariesCatching up
Missed GST returns or a year not filed? We rebuild the years from app statements and bank records, and talk to CRA for you.
Add us on CRAPassengers or packages: the GST rules differ
CRA treats carrying passengers through an app as a taxi business. Delivering food or parcels isn't, so it follows the normal small-supplier rule.
Rideshare drivers
Commercial ridesharing has counted as a taxi business for GST since July 1, 2017.
- Register from your first paid trip, whatever you earn. The $30,000 small-supplier limit doesn't apply.
- Apply before the 30th day after that first trip. Your registration takes effect on the day of the trip.
- GST is usually included in the fare. In BC and Alberta, the GST in a fare is the fare × 5 ÷ 105.
- File GST returns and claim back the GST you paid on fuel, repairs, washes and your vehicle.
Delivery drivers
Delivering goods through an app follows the same GST rules as most small businesses.
- No need to register while taxable sales stay at $30,000 or less over four calendar quarters in a row.
- Past $30,000, you register, collect and remit GST, and file returns.
- You can register earlier by choice, which lets you claim back GST on your costs.
- Either way, report all your delivery income, tips included, on your tax return.
You do both
Your rideshare fares are taxable from the first trip. While your combined taxable sales stay at $30,000 or less, GST applies only to the rideshare part, unless you choose to extend your registration. Once your combined sales pass $30,000, you charge GST on your delivery income too.
Who files the GST: you or the app?
CRA's rules put the requirement to register, collect, report and remit GST on the self-employed rideshare driver. CRA also says a ride-sharing company that a driver has authorized may agree to carry out some of these requirements on the driver's behalf, and some companies ask drivers to consent to the simpler options.
So read your driver agreement and your annual tax summary to see exactly what the platform does. We match that to your own records, so GST isn't missed or counted twice.
CRA usually gives rideshare drivers an annual GST return. If your year-end is December 31, the return is due June 15 and any balance is payable by April 30.
GST for rideshare drivers, in short
- Registration
- Required from the first paid trip. The $30,000 small-supplier limit doesn't apply to ridesharing.
- Rate
- 5% GST on trips that start in BC or Alberta, usually included in the fare.
- Input tax credits
- GST paid on fuel, repairs and maintenance, washes, and vehicle leases and purchases, for the business share. Not on insurance or interest, which carry no GST.
- Quick method
- An option if your yearly taxable sales are $400,000 or less. You remit a set share of your fares instead, and can't claim input tax credits on most purchases.
Checked 26 Oct 2026 against CRA's GST/HST pages for taxi operators and ride-sharing drivers and Info Sheet GI-196. Rules have exceptions; we check yours on the free call.
Vehicle costs start with the logbook
Your vehicle is your biggest cost, and you can only claim the business share of it. CRA works that share out as business kilometres divided by total kilometres, so the logbook matters more than any receipt.
The best record is a full logbook for the year: the date, where you went, why, and how far, plus the odometer reading at the start and end of the year. After one full year, CRA accepts a three-month sample logbook in later years, as long as your use stays within 10% of that base year.
Which kilometres count as business driving depends on how and when you work, so we go through it with you and set up a simple way to log it that fits how you drive.
What you can claim, for the business share
- Running costs
- Fuel or charging, insurance, maintenance and repairs, car washes, licence and registration, parking for work.
- Buying a vehicle
- Capital cost allowance at 30% a year. Cars in Class 10; a passenger vehicle bought in 2026 for more than $39,000 before tax goes in its own Class 10.1, capped at $39,000 plus tax.
- Leasing or a loan
- For leases signed in 2026, deductible lease costs are capped at $1,100 a month before tax; for new car loans, interest is capped at $350 a month.
- Electric vehicles
- Zero-emission passenger vehicles go in Class 54, with a $61,000 cap before tax for 2026.
- Other costs
- Fees the platform keeps, your phone's business share, and supplies for passengers or deliveries.
2026 limits from Finance Canada's 14 Jan 2026 announcement; logbook rules from CRA's motor vehicle records page.
CPP, instalments and the platform's summary
Nobody takes tax off your driving income, so three things catch drivers out at tax time. Plan for them and there are no surprises.
CPP on self-employment
You pay both the employee and employer shares. For 2026, that's 11.9% of net self-employment earnings between $3,500 and $74,600, up to $8,460.90, worked out on your tax return.
Quarterly instalments
Outside Quebec, CRA asks for instalments if your net tax owing is more than $3,000 this year and was more than $3,000 in either of the two years before. Payments fall on March 15, June 15, September 15 and December 15.
Estimate your taxPlatform annual summaries
Under CRA's reporting rules for digital platforms, apps report what they paid you and the fees they kept, and give you a copy by January 31. CRA sees those figures too, so your return should match them.
How pricing works
Pricing is explained on the business membership page. We confirm your price before any work starts. Most drivers need a personal tax return with the self-employed schedule and GST returns, which our personal plans cover. If you run your driving through a business with staff or several vehicles, the business membership fits better.
Three steps, mostly ours
You're on the road, so the start is short.
A look at where you are
On a free call, we go through which apps you drive for, whether you're registered for GST, and your last return.
Set up and catch up
We register you for GST if needed, set up your logbook and records, and file anything outstanding.
Every year after
You send app summaries and receipts through the client portal or app. We file your GST and tax returns and tell you what to set aside.
Driver taxes, answered
Do rideshare drivers have to register for GST?
Yes. Since July 1, 2017, CRA treats commercial ridesharing as a taxi business, and the $30,000 small-supplier limit doesn't apply to it. Your registration takes effect on the day of your first paid trip, and you have to apply before the 30th day after that. Fares in BC and Alberta carry 5% GST, usually included in the fare.
Do food and parcel delivery drivers have to charge GST?
Not until they pass the small-supplier limit. If you only deliver, you have to register once your taxable sales are more than $30,000 over four calendar quarters, and you can register earlier by choice. If you also drive passengers, your rideshare fares are taxable from the start, and once your combined sales pass $30,000, GST applies to your delivery income too.
Does the app handle GST for me?
Not necessarily. CRA says a ride-sharing company that a driver has authorized may agree to carry out some of the GST/HST requirements on the driver's behalf. The rules still put the requirement to register on you. Check your driver agreement and your annual tax summary to see what the platform does, and we'll match it to your own records and returns.
What vehicle expenses can I claim?
The business share of fuel, insurance, maintenance and repairs, licence and registration, car washes, lease payments or loan interest, and capital cost allowance on a vehicle you own. The share comes from your logbook: business kilometres divided by total kilometres. Fees the platform keeps are a business expense too.
Do I have to pay CPP on my driving income?
Yes. Self-employed drivers pay both the employee and employer shares of CPP on their net self-employment income. For 2026, that's 11.9% of earnings between $3,500 and $74,600, up to $8,460.90, worked out on your tax return. Earnings above that range can also attract the second additional CPP contribution.
How much does it cost?
It depends on how you drive and what needs doing. Many drivers need a personal tax return with the self-employed schedule plus GST returns, which our personal plans cover. If you run your driving through a business with staff or several vehicles, the business membership fits better. We confirm your price before any work starts.
Sources, checked 26 Oct 2026. Rules have exceptions and can change. This page is general information, not legal or tax advice for your situation.
- CRA, GST/HST information for taxi operators and commercial ride-sharing drivers (modified 31 Aug 2026), canada.ca: registration even as a small supplier, GST included in fares (5/105), input tax credits, quick method.
- CRA, GST/HST Info Sheet GI-196, GST/HST and Commercial Ride-sharing Services (Feb 2023), canada.ca: taxi-business definition from 1 Jul 2017, registration timing, what a ride-sharing company may do on a driver's behalf, reporting periods and due dates.
- CRA, Tax obligations for commercial ridesharing and delivery services (11 Jun 2024), canada.ca: delivery drivers and the $30,000 small-supplier threshold, drivers who do both, tips, platform fees.
- CRA, Motor vehicle records (modified 31 Aug 2026) and Classes of depreciable property (modified 31 Aug 2026), canada.ca: logbooks, Classes 10, 10.1 and 54.
- Department of Finance Canada, 2026 automobile deduction limits (14 Jan 2026), canada.ca: $39,000 Class 10.1 ceiling, $1,100 lease limit, $350 interest limit, $61,000 Class 54 ceiling.
- CRA, CPP contribution rates, maximums and exemptions, and Required tax instalments for individuals: who has to pay (modified 20 Jan 2026), canada.ca.
- CRA, Reporting rules for digital platform operators: guidance, and Using an app or website to earn income? (11 Sep 2024), canada.ca: transportation and delivery as personal services, seller copies by January 31.
Let's get your driving taxes set up right
Book a free 15-minute call by video or phone. Tell us which apps you drive for, whether you're registered for GST and how you track your kilometres, and we'll explain what we'd do and what it would cost.
Which office?
Book a free 15-minute call15-minute calls every weekday at 10 am and 2 pm Pacific (11 am and 3 pm Mountain), except holidays.
Typical next slots, confirmed when you book:
Call (236) 300-3322Email contact@finvo.caMon–Fri, 9 am – 5 pm PT/MT5.0 on Google · 92 reviews