This guide is provided for information purposes only and is not tax advice. Have your situation reviewed by a Chartered Professional Accountant (CPA) or a tax specialist.
Key takeaways
- As an Uber driver, you report your income as self-employed on form T2125, filed with your income tax return.
- GST/HST registration is mandatory from your first dollar of income. In Ontario, unlike Quebec, you remit the 13% HST to the CRA.
- The Quick Method can significantly reduce the HST you remit: compare it before choosing.
- Your biggest deduction is still your vehicle, prorated by your business kilometres. An accurate log can be worth thousands of dollars.
1. Your status: self-employed
For income tax, the CRA treats commercial ride-sharing income as business income. In practice:
- you complete form T2125 (Statement of Business or Professional Activities) using industry code 485310 (taxi service);
- your gross income includes ride fares and tips;
- the fees Uber keeps are a business expense;
- no one withholds tax from your earnings: it is up to you to plan for the payment.
New in Ontario: since July 1, 2025, the Digital Platform Workers’ Rights Act, 2022 guarantees, among other things, minimum wage for the time spent on each work assignment and a written statement within 24 hours that includes the distance driven. These rights apply whether you are an employee or an independent contractor. On their own, they do not change how your income is taxed. Keep these statements: they complement your log.
To learn more, see our Self-employed page.
2. HST in Ontario: remitting it is your job
According to the CRA, you must register for GST/HST as soon as you start earning money from commercial ride-sharing, regardless of the amount. The $30,000 small-supplier threshold does not apply.
In Ontario, HST is 13%. Unlike Quebec, where Uber remits part of the taxes for the driver, Uber states that in Ontario the driver collects, remits and files the HST with the CRA. You give Uber your GST/HST number and file your returns, quarterly or annually.
Regular method or Quick Method?
- Regular method: you remit the HST you collected, minus the HST paid on your business expenses (input tax credits, or ITCs), prorated by business use.
- Quick Method: you remit 8.8% of your HST-included revenue (the Ontario services rate), minus a 1% credit on the first $30,000. You don’t claim ITCs on day-to-day expenses, but you can still claim them on capital property such as a vehicle. You elect with form GST74.
| Example: $40,000 in fares | Regular method | Quick Method |
|---|---|---|
| HST collected (13%) | $5,200 | $5,200 |
| Calculation | $5,200 − $630 in ITCs | 8.8% × $45,200 − $300 |
| HST to remit | $4,570 | $3,678 |
In this example, the Quick Method leaves about $890 more in your pocket. It is often a good fit for drivers, whose taxable expenses are low compared with their revenue. These amounts are illustrative: run the numbers with your own figures, especially in a year when you buy a vehicle.
3. Your biggest deduction: your vehicle
An Uber driver cannot use the CRA’s $0.73/km rate: you deduct your actual expenses, multiplied by your business-use percentage.
Business-use percentage = business kilometres ÷ total kilometres for the year.
Eligible vehicle expenses
- fuel and oil;
- maintenance and repairs, tires, car washes;
- car insurance, including the commercial ride-sharing endorsement;
- municipal vehicle-for-hire licences required by your city and inspection fees;
- interest on your car loan (limit of $350 per month for new loans in 2026);
- leasing costs (limit of $1,100 per month before tax for new leases in 2026);
- capital cost allowance (CCA) if you own the vehicle: class 10, or 10.1 if it costs more than $39,000 before tax ($61,000 for a class 54 zero-emission vehicle).
Which kilometres count as business?
- Kilometres with a passenger: obviously.
- Kilometres driven to pick up a rider: they are part of your business.
- Kilometres driven with the app on, waiting for a ride: often treated as business, but this can be challenged. Record them separately.
- Personal trips: never.
Example: what a good log is worth
A Toronto driver covers 32,000 km in the year: 16,000 km with passengers and 6,400 km driving to pick up riders. Her vehicle expenses total $18,100:
| Expenses for the year (example) | Amount |
|---|---|
| Fuel | $6,200 |
| Maintenance, repairs, tires | $1,300 |
| Insurance | $2,600 |
| Municipal licence and inspection | $300 |
| Car washes | $300 |
| Car loan interest ($200 per month) | $2,400 |
| Capital cost allowance (CCA, example) | $5,000 |
| Total | $18,100 |
| Kilometres recorded | Business use | Deductible expenses |
|---|---|---|
| Rides with passengers only (16,000 km) | 50% | $9,050 |
| Rides + pickup trips (22,400 km) | 70% | $12,670 |
Just by recording pickup trips, she increases her deductible expenses by $3,620. These amounts are illustrative.
4. Other deductible expenses
- Uber’s service fees withheld from your rides.
- Your cellphone and data plan, in proportion to business use.
- Phone mount, charger, dashcam used for work.
- Water, tissues or mints offered to riders.
- Tolls (for example Highway 407) and parking paid during rides.
- Bank fees on the business account and your accountant’s fees.
Under the regular HST method, keep receipts that show the HST you paid: it entitles you to ITCs.
5. What is not deductible
- Traffic and parking tickets: never.
- Your personal meals, even between rides.
- Ordinary clothing.
- The personal share of your vehicle and phone expenses.
6. CPP: plan for it in your budget
As a self-employed person, you pay both shares of Canada Pension Plan (CPP) contributions:
- 11.9% of your net business income between $3,500 and $74,600, up to $8,460.90 in 2026;
- an additional 8% (CPP2) on income between $74,600 and $85,000, up to $832.
The “employer” share is deductible from income; the other share gives you a tax credit. Employment Insurance is optional for self-employed workers: you can opt in for special benefits (maternity, sickness…).
7. Deadlines and tax instalments
- June 15: filing deadline for your income tax return when you carry on a business.
- April 30: deadline to pay any balance owing, even if you file in June.
- Instalments: if your net tax owing is more than $3,000 this year and in either of the two previous years, the CRA will ask you to pay quarterly instalments.
- HST: the annual return is generally due June 15, but any HST owing must be paid by April 30.
Practical tip: set aside part of every Uber payout for income tax, CPP and HST.
8. Your mileage log: your best protection
If you are audited, it is up to you to prove your business kilometres. For each trip, record:
- the date;
- the starting point and destination;
- the purpose (ride, pickup, waiting);
- the distance.
Also note your odometer on January 1 and December 31. Keep your receipts, Uber statements and log for six years.
9. Your checklist
- GST/HST number obtained and given to Uber
- HST method chosen (regular or Quick Method, form GST74)
- Uber annual tax summary downloaded
- Odometer noted on January 1 and December 31
- Complete log of business kilometres
- Receipts organized: fuel, maintenance, insurance, licences, car washes, tolls, phone
- HST return filed and paid
- T2125 completed, return filed by June 15 and balance paid by April 30
How KiloTax helps
KiloTax automatically records your trips as soon as you start your vehicle, lets you classify them with one tap, keeps all your receipts in one place and calculates your business-use percentage continuously. At year-end, you get a report organized according to form T2125, ready for your accountant.
Frequently asked questions
Does an Uber driver in Ontario have to register for GST/HST?
Yes. According to the CRA, you must register as soon as you start earning money from commercial ride-sharing, regardless of the amount. The $30,000 small-supplier threshold does not apply.
Does Uber remit HST for me in Ontario?
No. Uber states that in Ontario, the driver is responsible for collecting, remitting and filing HST with the CRA. Only in Quebec does Uber remit part of the taxes on the driver’s behalf.
Is the Quick Method a good choice for an Uber driver?
Often. In Ontario you remit 8.8% of your HST-included revenue, minus a 1% credit on the first $30,000. Because drivers have few taxable expenses compared with their revenue, this is often less than under the regular method. Compare with your own figures.
Can I use the CRA’s $0.73/km rate?
No. That rate applies to allowances paid by an employer. As a self-employed driver, you deduct your actual vehicle expenses multiplied by your business-use percentage.
Does Ontario’s digital platform workers law change my taxes?
Not directly. Since July 1, 2025, it guarantees minimum wage for assignment time and detailed pay statements, whether you are an employee or an independent contractor. It does not deal with income tax: most drivers still report their income as self-employed. Have your situation reviewed.
Sources
- CRA – Sharing economy: taxes and the platform economy
- Uber – Tax information for drivers in Canada
- CRA – Quick Method of Accounting for GST/HST (RC4058)
- Department of Finance Canada – 2026 automobile deduction limits
- Investment Executive – CRA announces CPP maximums for 2026
- Government of Ontario – Rights and protections for digital platform workers
This guide presents general rules in effect in October 2026. Tax rules change and depend on your situation: have your figures reviewed by a Chartered Professional Accountant (CPA) or a tax specialist before filing.