Uber and delivery driver tax calculator for BC and Alberta
In 2026, rideshare and delivery pay is self-employment income. Take what you earned, subtract platform fees and the business share of your car costs, then pay income tax at your usual rates plus both halves of CPP (11.9%). Rideshare drivers register for GST from the first fare; delivery drivers once their pay passes $30,000.
2026 ratesBC and AlbertaRuns in your browserSummary free, no sign-upSources checked 28 Oct 2026Estimate only
Your 2026 estimate
28%
Based on the numbers entered. Your percentage changes if your other income, expenses or GST status changes.
Keep back about $4,404 of your $16,200 in payouts for income tax, CPP and GST.
Estimate, not tax advice. General information based on 2026 figures; your return may differ.
See every line behind this numberDriving profit, both halves of CPP, income tax, GST, what to do nextGet your driver tax file ready
Want us to go through this with you?
Book a free 15-minute call5.0 on Google · 92 reviews
GST for rideshare drivers: registered from the first fare
- Register from the first paid trip. CRA treats commercial ridesharing as a taxi business, so the $30,000 small-supplier limit doesn’t apply. Apply before the 30th day after your first fare; registration takes effect on the day of that fare.
- GST is usually inside the fare. On trips that start in BC or Alberta, the GST in a fare is the fare × 5 ÷ 105.
- Claim back GST on costs such as fuel, repairs, washes and a lease, for the business share. Insurance and interest carry no GST, so there’s nothing to claim on them.
- The app may handle part of it. CRA says the responsibility stays with you, even when an app collects your fares, and that a ride-sharing company you authorize may agree to carry out some of the GST requirements for you. What each platform does differs: check your driver agreement and annual summary.
2026 rates used in this estimateFrom our tax engine; each figure links to its source, checked 28 Oct 2026
| Figure | 2026 value | Source, checked |
|---|---|---|
| CPP basic exemption | $3,500 | CRA CPP rates, 28 Oct 2026 |
| Maximum pensionable earnings (YMPE) | $74,600 | CRA CPP rates, 28 Oct 2026 |
| CPP rate, self-employed | 11.9% (5.95% × 2), up to $8,460.90 | CRA CPP rates, 28 Oct 2026 |
| Additional maximum (YAMPE) and CPP2, self-employed | $85,000; 8% (4% × 2) on $74,600 to $85,000, up to $832 | CRA CPP2 rates, 28 Oct 2026 |
| GST rate, BC and Alberta | 5% (5/105 of a GST-included fare) | CRA taxi and ride-sharing GST, 28 Oct 2026 |
| Small-supplier limit (delivery) | $30,000 | CRA When to register, 28 Oct 2026 |
| Instalments needed when net tax owing is over | $3,000 | CRA Who has to pay, 28 Oct 2026 |
| Taxable income | Rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
| Taxable income | Rate |
|---|---|
| Up to $50,363 | 5.6% |
| $50,363 to $100,728 | 7.7% |
| $100,728 to $115,648 | 10.5% |
| $115,648 to $140,430 | 12.29% |
| $140,430 to $190,405 | 14.7% |
| $190,405 to $265,545 | 16.8% |
| Over $265,545 | 20.5% |
| Taxable income | Rate |
|---|---|
| Up to $61,200 | 8% |
| $61,200 to $154,259 | 10% |
| $154,259 to $185,111 | 12% |
| $185,111 to $246,813 | 13% |
| $246,813 to $370,220 | 14% |
| Over $370,220 | 15% |
Brackets: CRA 2026 federal rates, B.C. 2026 rates and Alberta 2026 rates, checked 28 Oct 2026. The calculator also uses the 2026 basic personal amounts, the Canada employment amount, EI on a job and the B.C. tax reduction from the same engine as our income tax calculator.
Estimate only, general information, not tax advice. Your situation may differ; book a free 15-minute call before acting. The calculator leaves out capital cost allowance (CCA) on a car you own, the caps on lease costs and loan interest for passenger vehicles (it flags when you may be over them), the quick method for GST, the home office, EI special benefits for self-employed people, and other provinces.
Your 2026 driving tax, line by line
From your fares or delivery pay to your balance: driving profit, both halves of CPP, the income tax driving adds and the GST to send, with the CRA line number where there is one and a sentence on why each figure is there. It follows every change you make above.
| Line | Amount |
|---|---|
| Driving income (form T2125) | |
| Gross fares before feesWhat riders paid, from your annual summary. | $21,000 |
| GST inside the faresGST you collect for CRA isn’t income: fares × 5 ÷ 105. | −$1,000 |
| TipsAll tips are income, in the app or in cash. | +$1,500 |
| Platform feesWhat the app kept is a business expense. | −$6,300 |
| Vehicle costs, business share60% of $8,400: business km ÷ total km. | −$5,040 |
| Other costsPhone, parking, accounting, required items and supplies: already business amounts. | −$700 |
| GST claimed back on costsInput tax credits come back from CRA, so that part isn’t a cost. | +$179 |
| Net self-employment incomeAdded to your other income on your return. | $9,639 |
| CPP on self-employment (Schedule 8) | |
| Employee halfThe same share an employee pays on wages. | $573.52 |
| Employer halfSelf-employed people pay it too; it’s deducted from income. | $573.52 |
| CPP on self-employment11.9% in all ($3,500 to $74,600), plus 8% CPP2 to $85,000, because you’re self-employed. Your job’s CPP is already paid. | $1,147.05 |
| Income tax | |
| Income tax without drivingOn your other income alone. | $7,905.68 |
| Income tax with drivingSame 2026 engine, with your driving profit added. | $10,341.46 |
| Federal part | +$1,771.87 |
| BC part | +$663.90 |
| Income tax added by drivingThe difference between the two. | $2,435.78 |
| Marginal tax rateTax on your next dollar of profit. | 28.2% |
| Your 2026 return | |
| Income tax on all your income | $10,341.46 |
| CPP on self-employment | +$1,147.05 |
| Tax deducted from your jobEstimated: the tax on your job alone. Enter T4 box 22 to replace it. | −$7,905.68 |
| Balance owingWhat you’d pay with your return, by April 30, 2027. | $3,582.82 |
| GST (separate return) | |
| GST collectedRideshare: from the first fare, inside the fare. | $1,000 |
| Input tax credits5/105 of fuel, repairs, washes, lease, phone, parking, accounting and supplies, business share. | −$179 |
| GST to send CRAOn your GST return, separate from income tax. | $821 |
What this means
- Your driving adds $9,639 of profit. About $3,583 of it goes to income tax and CPP, leaving $6,056.
- Your job’s tax is taken off your pay, but nobody takes tax off driving income, so the extra is due with your return.
What to do next
- Keep a logbook of business and total kilometres all year: your 60% business share rests on it.
- Set aside 28% of each payout (27.2% in this example, rounded up) in a separate account for income tax, CPP and GST.
- Register for GST if you haven’t: rideshare drivers must, from the first paid trip. How to register.
- File by June 15, 2027 (self-employed), but pay by April 30, 2027 to avoid interest.
Want a second look before you file? See the personal membership.
Key figures for 2026
The rules and rates for driving income in the 2026 tax year (returns filed in 2027), in BC and Alberta.
| Figure | Rule or rate | Source, checked |
|---|---|---|
| Income tax on driving profit | Your marginal rate: 14% to 33% federal, plus 5.6% to 20.5% in BC or 8% to 15% in Alberta | CRA, gov.bc.ca, alberta.ca 2026 rates; 28 Oct 2026 |
| CPP on self-employment | 11.9% of net earnings from $3,500 to $74,600 (up to $8,460.90), plus 8% CPP2 from $74,600 to $85,000 (up to $832) | CRA CPP and CPP2 rates; 28 Oct 2026 |
| GST, rideshare | Register from the first paid trip, whatever you earn; GST usually inside the fare (fare × 5 ÷ 105) | CRA Info Sheet GI-196; CRA sharing economy; 28 Oct 2026 |
| GST, delivery | Register once taxable sales pass $30,000 in one calendar quarter or over four in a row; earlier by choice | CRA gig economy; CRA When to register; 28 Oct 2026 |
| Business-use share | Business km ÷ total km × vehicle costs; parking for work in full | CRA Guide T4002, line 9281; 28 Oct 2026 |
| Logbook | A full year's log, then a 3-month sample in later years if use stays within 10% of the base year | CRA Motor vehicle records; 28 Oct 2026 |
| Lease and interest caps | Passenger vehicles: lease costs up to $1,100 a month before tax (new 2026 leases); loan interest up to $350 a month (new 2026 loans) | Finance Canada, 14 Jan 2026; 28 Oct 2026 |
| Instalments | Required when net tax owing is over $3,000 in 2026 and in 2025 or 2024; due March 15, June 15, September 15, December 15 | CRA Who has to pay; 28 Oct 2026 |
How it's calculated
The steps follow Form T2125, Statement of Business or Professional Activities, and Schedule 8 for CPP.
- Income. Gross fares or delivery pay before platform fees, plus tips. For rideshare, the GST inside the fares (fare × 5 ÷ 105) is taken out: it belongs to CRA. For delivery, GST is assumed to be charged on top of your pay once you're registered, so it isn't in the pay you enter.
- Business-use share. Business kilometres divided by total kilometres. If business km is more than total km, the calculator uses 100% and asks you to check.
- Vehicle costs. Fuel, insurance, repairs, washes, licence and registration, lease payments and loan interest, times the business-use share.
- Other costs. Platform fees, the business share of your phone, parking while working, accounting, required items and supplies, in full.
- GST credits. When you're registered, the GST in eligible costs (5/105 of the business share of fuel, repairs, washes, lease, phone, parking, accounting, required items and supplies) comes back as input tax credits, so it isn't a cost.
- Net self-employment income. Income minus costs. A loss reduces your other income but never the CPP on a job.
- CPP. 11.9% of your driving profit inside the CPP band, sharing the $3,500 exemption and the $74,600 maximum with any job; 8% CPP2 above that. Half is deducted from income; the base part of the other half is a credit.
- Income tax. Your 2026 tax is worked out twice with the engine behind our income tax calculator: with your other income alone and with your driving profit added. The difference is the tax driving adds.
- Set-aside and balance. Income tax added, plus CPP, plus GST to send, divided by your payouts. The balance is the income tax on everything plus CPP, minus T4 box 22 and instalments paid.
Two worked examples for 2026
Example 1: a part-time rideshare driver in BC with a $60,000 day job
You earn a $60,000 salary and drive evenings and weekends. Your app's summary shows $21,000 of gross fares, $1,500 of tips and $6,300 of platform fees. Your logbook shows 12,000 of 20,000 km for work: a 60% business share. Car costs are $8,400 (fuel $3,600, insurance $2,400, repairs $1,200, washes $300, loan interest $900), so you deduct $5,040. Phone, parking and supplies add $700.
The fares include $1,000 of GST, which isn't income. You claim back $179 of GST on costs. Net self-employment income is $9,639. CPP on it is $1,147 (both halves) and income tax rises by $2,436 ($1,772 federal, $664 BC), leaving $6,056. You'd send $821 of GST. Setting aside about 28% of your $16,200 of payouts (27.2%, rounded up) covers all three.
| Line | Amount |
|---|---|
| Gross fares | $21,000 |
| GST inside the fares | −$1,000 |
| Tips | +$1,500 |
| Platform fees | −$6,300 |
| Vehicle costs, 60% of $8,400 | −$5,040 |
| Phone, parking, supplies | −$700 |
| GST claimed back on costs | +$179 |
| Net self-employment income | $9,639 |
| CPP on self-employment | $1,147 |
| Income tax added | $2,436 |
| Left after tax and CPP | $6,056 |
| GST to send CRA | $821 |
| Balance owing on the return | $3,583 |
The job's own tax is deducted from each pay cheque, so the balance owing is the tax and CPP on the driving: $3,583, due April 30, 2027. The $2,436 of extra income tax is under $3,000, so instalments aren't needed on these numbers.
Example 2: a full-time food delivery courier in Alberta
Delivery is your only income. Your earnings statement shows $42,000 of delivery pay and $9,000 of tips, with no fees charged to you. That pay is over $30,000, so you must register for GST and charge $2,100 (5%), here assumed to be paid on top of your pay. You drove 38,000 of 45,000 km for work: 84.4%. Car costs are $11,860 (fuel $5,400, insurance $2,800, repairs $1,800, washes $240, registration $120, loan interest $1,500), so you deduct $10,015. Phone, parking, accounting and bags add $1,670.
You claim back $379 of GST on costs. Net self-employment income is $39,694. CPP is $4,307 and income tax is $3,660 ($2,651 federal, $1,009 Alberta), leaving $31,726. GST to send is $1,721. Setting aside about 19% of your $53,100 of payouts (18.2%, rounded up) covers it all.
| Line | Amount |
|---|---|
| Delivery pay | $42,000 |
| Tips | +$9,000 |
| Vehicle costs, 84.4% of $11,860 | −$10,015 |
| Phone, parking, accounting, bags | −$1,670 |
| GST claimed back on costs | +$379 |
| Net self-employment income | $39,694 |
| CPP on self-employment | $4,307 |
| Income tax | $3,660 |
| Left after tax and CPP | $31,726 |
| GST charged, less credits | $1,721 |
| Balance owing on the return | $7,967 |
Net tax owing of $3,660 is over $3,000. If it was also over $3,000 in 2025 or 2024, CRA expects quarterly instalments for 2026; if not, a second year like this one usually brings instalment reminders for 2027.
What drivers can deduct, and what they can't
Vehicle costs are claimed for the business share only. Other costs are claimed as business amounts. Keep receipts and a logbook: CRA allows motor vehicle expenses only when they are reasonable and supported.
Car costs: business share
- Fuel, oil and electricity for an electric vehicle
- Insurance, maintenance and repairs, car washes
- Licence and registration fees
- Lease payments, or interest on a car loan, within the passenger-vehicle caps
Other costs
- Fees and commissions the platform keeps
- The business share of your cellphone airtime
- Parking for your driving, in full
- Accounting, required items, delivery bags and rider supplies
Not deductible
Most fines and penalties, such as traffic and parking tickets. The personal share of any cost. Loan principal. Your own meals on shift. The car's purchase price isn't deducted at once: it's claimed over time as capital cost allowance (CCA), which this calculator leaves out. A car bought in 2026 for more than $39,000 before tax has its CCA capped at that amount.
Who this is for and what it leaves out
Who this is for
- Self-employed rideshare drivers and delivery couriers who live in BC or Alberta, full-time or part-time.
- Drivers with a day job who want to know what driving adds to their tax and what to keep back.
- New drivers checking whether they need to register for GST.
What it leaves out
- CCA and buying a vehicle, and the exact lease and interest caps (flagged only).
- The home office, the GST quick method, and GST on platform fees.
- EI special benefits for self-employed people, and credits beyond the basic ones.
- Driving both rideshare and delivery in one estimate, corporations, and other provinces.
Sources, checked 28 Oct 2026
- CRA: GST/HST Info Sheet GI-196, GST/HST and Commercial Ride-sharing Services
- CRA: GST/HST information for taxi operators and commercial ride-sharing drivers
- CRA: Taxes and the platform economy, sharing economy (commercial ridesharing)
- CRA: Taxes and the platform economy, gig economy (delivery)
- CRA: When to register for and start charging the GST/HST
- CRA: Guide T4002, chapter 3, motor vehicle expenses (line 9281)
- CRA: Motor vehicle expenses, deductible expenses
- CRA: Motor vehicle records (logbooks)
- Finance Canada: 2026 automobile deduction limits (14 Jan 2026)
- CRA: CPP contribution rates, maximums and exemptions
- CRA: Second additional CPP (CPP2) rates and maximums
- CRA: Line 22200, CPP on self-employment (Schedule 8)
- CRA: Required tax instalments, who has to pay
- CRA: Instalment payment due dates
- CRA: 2026 tax rates and income brackets
- B.C.: personal income tax rates
- Alberta: personal income tax
Driving for an app? Talk it through.
Book a free 15-minute call by video or phone. We'll look at which apps you drive for, your GST registration, your logbook and what to set aside. Pricing is explained on the personal membership page. We confirm your price before any work starts.
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
Driver taxes, answered
How much tax do rideshare and delivery drivers pay?
Your driving profit, after platform fees and the business share of car costs, is added to your other income and taxed at your normal rates, plus both halves of CPP. A BC driver with a $60,000 job and $9,639 of driving profit pays about $2,436 more income tax and $1,147 of CPP in 2026. In that example, setting aside about 28% of each payout covers income tax, CPP and GST.
Do rideshare drivers have to charge GST?
Yes. CRA treats commercial ridesharing as a taxi business, so you 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 trip. GST is usually included in the fare: in BC and Alberta, the GST in a fare is the fare times 5 divided by 105.
Do delivery drivers have to register for GST?
Not until their taxable sales pass $30,000 in a single calendar quarter or over four calendar quarters in a row. You can register earlier by choice, which lets you claim back the GST on your costs. 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 pay too.
Does the app collect and send GST for me?
Not necessarily. CRA says it is still your responsibility to charge, collect and send the GST on every fare, even when an app collects your fares. It also says a ride-sharing company you have authorized may agree to carry out some of these requirements for you. What each platform does differs, so check your driver agreement and annual tax summary.
What car expenses can I deduct as a driver?
The business share of fuel or charging, insurance, maintenance and repairs, car washes, licence and registration, lease payments or loan interest. Parking for your driving is deductible in full. Traffic and parking tickets are not. The car's purchase price is claimed over time as capital cost allowance (CCA), and passenger vehicles have caps on CCA, lease costs and interest.
How do I work out my business-use percentage?
Divide the kilometres you drove for work by the total kilometres you drove in the year, from your odometer readings on January 1 and December 31. CRA's best evidence is a logbook for the whole year with the date, destination, purpose and distance of each trip. After a full base year, a three-month sample log can be used if your use stays within 10%.
Do I pay CPP on rideshare or delivery income?
Yes. Self-employed drivers pay both the employee and employer shares: 11.9% of net self-employment earnings between $3,500 and $74,600 in 2026, up to $8,460.90, plus 8% CPP2 up to $85,000. If you also have a job, the CPP you paid there counts toward the same maximum. Half of the self-employed CPP is deducted from your income.
Do I have to pay tax instalments on driving income?
Only if your net tax owing is more than $3,000 in 2026 and was also more than $3,000 in 2025 or 2024. Nobody deducts tax from driving income, so drivers often reach that level. CRA sends reminders, and instalments are due March 15, June 15, September 15 and December 15. GST has its own instalment rule for annual filers.