Uber Driver Tax Deductions Canada 2026: The Complete Guide

Who This Guide Is For

If you drive for Uber, Uber Eats, or Lyft in Canada, the CRA considers you a self-employed independent contractor. You do not receive a T4 slip. Instead, you report your income and expenses on Form T2125 as part of your personal tax return.

This means you are responsible for tracking your own income, collecting GST/HST when required, and claiming every deduction you are entitled to. The good news is that the list of deductions available to ride-share drivers is substantial.

Do Uber Drivers Need to Register for GST/HST?

In most cases, yes. The CRA requires any business earning more than $30,000 in revenue over four consecutive calendar quarters to register for and collect GST/HST.

Even if you earn less than $30,000, voluntary registration can be beneficial. Registering allows you to claim Input Tax Credits (ITCs) on business expenses like gas, maintenance, and your phone plan. For a full breakdown of how GST/HST works, see our complete GST/HST guide for Canadian small businesses.

The Complete List of Uber Driver Tax Deductions

Vehicle Expenses: Actual Cost Method

The largest deduction category for most drivers is vehicle expenses. Under the actual cost method, you track every vehicle-related expense for the year and then multiply the total by your business-use percentage.

Eligible expenses include:

• Gas and fuel — Every fill-up while driving for business
• Insurance — The business-use portion of your auto insurance premium
• Maintenance and repairs — Oil changes, tire rotations, brake pads, car washes
• Lease payments — Up to $900 per month (2026 CRA limit) for the business-use portion
• Capital Cost Allowance (CCA) — Depreciation on a vehicle you own (Class 10 at 30% declining balance)
• Licence and registration fees — Annual plate renewal, driver licence renewal
• Parking — Business-related parking only (not personal errands)

To calculate your business-use percentage, divide your total business kilometres by your total kilometres for the year. If you drove 40,000 km total and 28,000 km were for Uber, your business-use percentage is 70%.

Vehicle Expenses: CRA Mileage Rate Method

Instead of tracking actual costs, you can use the CRA prescribed mileage rate. For 2026, the rates are:

The mileage rate method is simpler but may result in a lower deduction than actual costs for drivers with high fuel and maintenance expenses. Compare both methods before filing.

Phone and Data Plan

Your smartphone is essential for driving — you need it for the Uber app, navigation, and communication with riders. The business-use portion of your monthly phone and data plan is deductible.

Calculate your business-use percentage based on how much of your phone usage is for driving. If you use your phone 60% for Uber and 40% for personal use, you can deduct 60% of your monthly bill.

Rideshare Platform Fees

Uber charges a service fee on every trip — typically 25% of the fare. This fee is 100% deductible as a business expense. Enter it on Line 8810 (Management and administration fees) of your T2125.

Home Office Expenses

If you use a dedicated space in your home for managing your Uber business — tracking expenses, reviewing trip summaries, filing taxes — you may be able to claim home office expenses.

Eligible costs include rent, mortgage interest (not principal), property taxes, utilities, and home insurance. Calculate the deduction based on the square footage of your workspace relative to your total home.

Meals During Long Shifts

Meals purchased during a driving shift are 50% deductible, provided they are not reimbursed and are consumed during the course of business. Keep your receipts.

Professional Fees

Accounting software subscriptions, tax preparation fees, and any professional services related to your driving business are fully deductible.

What Records Does the CRA Require?

The CRA expects you to maintain organized records for at least six years after the tax year. For Uber drivers, this means:

• Mileage logbook — Date, destination, kilometres driven, purpose of each trip
• Receipts — For every deductible expense (gas, maintenance, phone, etc.)
• Bank statements — Showing deposits from Uber and business-related purchases
• Uber annual summary — Your income statement from the Uber driver portal

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

How to File: The T2125 Form

All your Uber income and deductions go on CRA Form T2125 — Statement of Business or Professional Activities. Here is where the key numbers land:

Your net business income flows to your T1 personal tax return on Line 13500. For a complete walkthrough of every section, read our T2125 form guide for self-employed Canadians.

Frequently Asked Questions

Do I get a T4 from Uber?

No. Uber drivers are independent contractors, not employees. Uber does not issue a T4. You may receive a T4A if your earnings exceed a certain threshold, but you are responsible for reporting all income regardless.

Can I deduct my car loan payments?

Loan principal payments are not deductible. However, you can claim Capital Cost Allowance (CCA) on a vehicle you own, which provides a depreciation deduction. Loan interest is deductible as part of your vehicle expenses.

What if I only drive part-time?

The same rules apply. You prorate all vehicle expenses by your business-use percentage. If you drove 5,000 km for Uber out of 20,000 km total, your business-use percentage is 25%.

Can I claim a GPS or dashcam?

Yes. A GPS device or dashcam used for business is deductible. If the cost is under $500, you can expense it in the year of purchase. Over $500, claim CCA over multiple years.