DoorDash & Uber Eats Tax Deductions Canada 2026: Delivery Driver Guide

Who This Guide Is For

If you deliver food or groceries through DoorDash, Uber Eats, Skip The Dishes, or Instacart in Canada, the CRA treats you as a self-employed independent contractor. You will not receive a T4 from the platform. Instead, you report your income and claim deductions on Form T2125 as part of your personal tax return.

This guide covers every deduction available to delivery drivers, how to calculate your vehicle expenses, and what records the CRA expects you to keep.

How Delivery Driver Income Is Taxed

Your gross earnings from DoorDash, Uber Eats, or any other platform are business income. This includes base pay, tips, promotions, and bonuses. All of it goes on Line 8000 of your T2125.

You pay income tax on your net business income — gross income minus all eligible deductions. You also pay both the employee and employer portions of CPP contributions, which totals 11.9% on net self-employment income above $3,500 (up to the annual maximum).

The more deductions you claim, the lower your tax bill. That is why tracking every eligible expense matters.

GST/HST Registration for Delivery Drivers

The CRA requires you to register for GST/HST once your gross revenue exceeds $30,000 over four consecutive calendar quarters.

Even below the threshold, voluntary registration lets you claim Input Tax Credits on business expenses like gas, phone, and equipment. For the complete breakdown, see our GST/HST guide for Canadian small businesses.

Vehicle Expenses: Your Largest Deduction

Vehicle costs are the biggest write-off for most delivery drivers. You have two methods to calculate the deduction.

Method 1: Actual Cost Method

Track every vehicle expense for the year, then multiply the total by your business-use percentage.

Eligible expenses:

• Fuel — Every fill-up during business driving
• Insurance — Business-use portion of your auto insurance
• Maintenance and repairs — Oil changes, tire rotations, brake pads, wiper blades
• Lease payments — Up to $900 per month (2026 CRA limit)
• Loan interest — Up to $300 per month on a vehicle loan
• Licence and registration — Annual plate renewal
• Car washes — When related to business use
• Parking — Business-related parking fees (not personal)

Method 2: CRA Mileage Rate

Instead of tracking every expense, apply the CRA prescribed rate to your business kilometres:

The mileage rate is simpler but often produces a smaller deduction than the actual cost method for high-mileage drivers. Compare both before filing.

Calculating Your Business-Use Percentage

Divide your business kilometres by total kilometres for the year.

Example: You drove 35,000 km total. Your delivery apps show 22,000 km of business driving. Your business-use percentage is 62.9%.

If your total vehicle expenses were $8,400, your deduction is $8,400 × 62.9% = $5,284.

Phone and Data Plan

You need your phone to receive orders, navigate to restaurants and customers, and communicate with support. The business-use portion of your monthly phone and data plan is deductible.

If you estimate 70% of your phone use is for delivery work, you can deduct 70% of your monthly bill. Be reasonable — CRA will question a 100% claim if you also use the phone personally.

Delivery Bags and Equipment

Insulated delivery bags, phone mounts, car chargers, and other equipment purchased for your delivery work are fully deductible. If an item costs under $500, expense it in the year you buy it. Items over $500 are claimed through Capital Cost Allowance (CCA) over multiple years.

Common deductible equipment:

Platform Service Fees

DoorDash, Uber Eats, and other platforms charge service fees or commissions on every order. These are fully deductible as management and administration fees on Line 8810 of your T2125.

Check your annual earnings summary from each platform — it typically shows gross fares and the platform's commission separately.

Home Office Expenses

If you use a dedicated area of your home to manage your delivery business — reviewing orders, tracking expenses, filing taxes — you can claim a portion of your housing costs.

Calculate the percentage by dividing your workspace square footage by your total home square footage. Apply that percentage to:

• Rent (or mortgage interest — not principal)
• Property taxes
• Utilities (heat, electricity, water)
• Home insurance
• Internet (business portion)

Meals During Shifts

Meals purchased while working a delivery shift are 50% deductible. The meal must be consumed during the course of business and not reimbursed. Keep your receipts — CRA requires the date, restaurant name, and amount.

Other Deductible Expenses

What Records to Keep

The CRA requires you to keep records for six years after the tax year. For delivery drivers, this means:

• Mileage logbook — Date, start/end location, kilometres, purpose
• Receipts — Every deductible expense (gas, maintenance, phone, equipment)
• Platform earnings summaries — Annual statements from each app
• Bank statements — Showing deposits from platforms and business purchases
• GST/HST filings — If registered

Digital records are accepted. You do not need paper copies as long as files are legible and organized.

Filing Your T2125

All delivery income and deductions go on CRA Form T2125. Here is where the key numbers land:

File a separate T2125 for each distinct platform if you treat them as separate businesses, or combine them on one T2125 if you treat delivery as a single business activity. Most drivers use a single T2125.

For a complete walkthrough of every section, read our T2125 form guide for self-employed Canadians.

DoorDash vs Uber Eats: Tax Differences

From a tax perspective, there is almost no difference between the platforms. Both treat you as an independent contractor, both provide annual earnings summaries, and the same CRA rules apply to both.

The main practical difference is how each platform reports your earnings:

• DoorDash provides a tax summary in the Dasher portal showing total earnings and platform fees
• Uber Eats provides an annual tax summary in the Uber driver portal, and may issue a T4A if earnings exceed reporting thresholds

Regardless of which platform you use — or if you use both — report all income and claim all eligible deductions on your T2125.

Frequently Asked Questions

Can I deduct expenses if I only deliver part-time?

Yes. The same rules apply whether you deliver full-time or part-time. You prorate vehicle expenses by your business-use percentage. Even a few hours per week of delivery work generates deductible expenses.

Do I need a separate bank account for delivery income?

It is not legally required, but it makes record-keeping much easier. A dedicated business account simplifies tracking income and expenses, and makes CRA audits less stressful.

What if I drive for both DoorDash and Uber Eats?

You can report all delivery income on a single T2125 under one business activity. Combine the earnings summaries from both platforms and report the total on Line 8000.

Can I deduct the cost of food I deliver?

No. The food you deliver belongs to the customer. You cannot deduct the cost of items you pick up and deliver. You can only deduct meals you purchase and consume yourself during a shift (at 50%).