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 are self-employed: you report your income and expenses federally (form T2125) and in Quebec (form TP-80).
- GST and QST registration is mandatory from your very first ride, even with low income. Uber collects the taxes and remits part of them on your behalf.
- Your biggest deduction is your vehicle: your actual expenses multiplied by your business-use percentage.
- Every business kilometre you fail to record lowers that percentage. An accurate log can be worth thousands of dollars in deductions.
1. Your status: self-employed
Revenu Québec considers a driver who offers services through a digital platform to be a self-employed person carrying on a business. In practice:
- you report your business income and expenses on form T2125 (Statement of Business or Professional Activities) federally and on form TP-80 in Quebec;
- your gross income includes ride fares and tips;
- the service fees Uber keeps are a business expense;
- no one withholds tax from your earnings: it is up to you to plan for the payment.
Uber’s annual tax summary helps you find your gross fares, tips and fees. It does not replace your own mileage log. To learn more, see our Self-employed page.
2. GST and QST: what Uber does for you (and what it doesn’t)
Paid passenger transportation is an exception: you must be registered for the GST and QST before your first ride, whatever your total sales. The small-supplier exemption ($30,000) does not apply.
Uber is a respondent under an agreement with Revenu Québec. It collects the taxes on your rides and remits part of them to Revenu Québec on your behalf, at rates based on the Quick Method of accounting:
| Step | GST | QST | Total |
|---|---|---|---|
| Taxes collected from the rider | 5.00% | 9.975% | 14.975% |
| Amount remitted to Revenu Québec on your behalf | 2.73% | 6.16% | 8.89% |
| Amount paid back to the driver | 2.27% | 3.82% | 6.09% |
Source: Revenu Québec, rates set out in the agreements with respondents (updated March 2024).
What you still need to do:
- File your GST/QST return. With Revenu Québec’s simplified service, it is annual and your fiscal year ends on December 31.
- Check whether you owe additional amounts, depending on your situation (for example, if you have other business activities).
- Understand the Quick Method: under it, you generally do not claim input tax credits on day-to-day expenses (fuel, maintenance). Some capital property purchases, such as a vehicle, may still qualify. Have this confirmed before you buy or lease a car.
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 any endorsement related to paid passenger transportation;
- registration, licences and inspections required for your activity;
- 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 class 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 and have your method validated.
- Personal trips (groceries, vacations, commuting to another job): never.
Example: what a good log is worth
A driver covers 30,000 km in the year: 15,000 km with passengers and 6,000 km driving to pick up riders. Their vehicle expenses total $17,600:
| Expenses for the year (example) | Amount |
|---|---|
| Fuel | $6,500 |
| Maintenance, repairs, tires | $1,200 |
| Insurance | $1,800 |
| Registration and licences | $400 |
| Car washes | $300 |
| Car loan interest ($200 per month) | $2,400 |
| Capital cost allowance (CCA, example) | $5,000 |
| Total | $17,600 |
| Kilometres recorded | Business use | Deductible expenses |
|---|---|---|
| Rides with passengers only (15,000 km) | 50% | $8,800 |
| Rides + pickup trips (21,000 km) | 70% | $12,320 |
Just by recording pickup trips, this driver increases their deductible expenses by $3,520. These amounts are illustrative: your actual figures depend on your vehicle and your situation.
4. Other deductible expenses
- Uber’s service fees withheld from your rides: often the largest expense after your vehicle.
- Your cellphone and data plan, in proportion to business use.
- Phone mount, charger and accessories used for work.
- Water, tissues or mints offered to riders.
- Tolls and parking paid during rides, at 100%.
- Bank fees on the account used for the business and your accountant’s fees.
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. QPP and QPIP: plan for them in your budget
As a self-employed person, you pay both the employee and employer shares of Quebec Pension Plan (QPP) contributions, as well as Quebec Parental Insurance Plan (QPIP) premiums. These amounts are calculated on your income tax return. The “employer” share of your QPP contributions is deductible from income.
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. Interest applies after that date.
- Instalments: if your tax owing is more than $1,800 (in Quebec, and federally for Quebec residents), you may have to make quarterly payments the following year.
Practical tip: set aside part of every Uber payout in a separate account for taxes and contributions.
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 to know your total kilometres. Keep all your receipts and Uber statements for six years.
9. Your checklist
- GST and QST registration completed before your first ride
- Uber annual tax summary downloaded
- Odometer noted on January 1 and December 31
- Complete log of business kilometres
- Receipts organized: fuel, maintenance, insurance, registration, car washes, tolls, phone
- GST/QST return filed
- T2125 and TP-80 completed, return filed by June 15 and balance paid by April 30
How KiloTax helps
KiloTax records your trips automatically, lets you classify them with one tap, keeps all your vehicle receipts in one place and calculates your business-use percentage continuously. At year-end, you get a report organized according to forms T2125 and TP-80, ready for your accountant.
Frequently asked questions
Does an Uber driver in Quebec have to register for the GST and QST?
Yes. According to Revenu Québec, a driver who offers paid transportation through a platform such as Uber must be registered for the GST and QST before their first ride, regardless of income. The small-supplier exemption does not apply to this type of service.
Does Uber collect the taxes for me?
Partly. Uber is a respondent under an agreement: it collects the GST and QST on your rides and remits part of them to Revenu Québec on your behalf, at rates set out in an agreement based on the Quick Method. You still have to file a GST/QST return, usually annually.
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 (fuel, maintenance, insurance, capital cost allowance, interest…) multiplied by your business-use percentage.
Do kilometres driven to pick up a rider count?
Yes, kilometres driven to the starting point of a ride are part of your business. Kilometres driven with the app on while waiting for a ride are often treated as business, but this can be challenged: record them separately and have your method validated by a professional.
How long should I keep my receipts and log?
Generally, six years after the end of the tax year they relate to. Keep your receipts, Uber’s annual statements and your mileage log.
Sources
- Revenu Québec – Offering your services as a driver on a digital platform (Uber, Lyft)
- Revenu Québec – Driver associated with a respondent under an agreement
- Revenu Québec – Rates set out in the agreements with respondents
- CRA – GST/HST information for taxi and commercial ride-sharing drivers
- CRA – Quick Method of Accounting for GST/HST (RC4058)
- Department of Finance Canada – 2026 automobile deduction limits
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.