Rideshare Driver

Tax guide for Canadian Uber, Lyft, and rideshare drivers

Allowable Expenses

• Vehicle costs — Fuel, insurance, repairs, oil changes — business-use proportion
• CCA on vehicle — Vehicle depreciation via CCA Class 10 (30%/year) or Class 10.1
• Platform fees — Uber/Lyft service fees deducted from fares — deductible from income
• Cleaning & car care — Car washes, interior cleaning products for passenger comfort
• Phone & data plan — Smartphone and data plan for running the rideshare app — business portion
• Vehicle cleaning & detailing — Car washes, interior cleaning products, and detailing to maintain rideshare standards

Tax Tips

• Rideshare drivers must register for GST/HST from the first dollar of income — no C$30,000 threshold
• Keep an accurate mileage log distinguishing rideshare km from personal km
• The Uber/Lyft service fee deducted from each fare reduces your taxable income
• Vehicle insurance must include commercial or rideshare coverage — standard personal auto insurance may be voided

Frequently Asked Questions

Do Uber drivers in Canada have to register for GST/HST?

Yes — rideshare drivers providing passenger transportation services must register for GST/HST from the first dollar of income. The usual C$30,000 small supplier threshold does NOT apply to rideshare services. You must register even if you drive part-time or only occasionally.

How does a rideshare driver claim vehicle expenses in Canada?

Use the actual costs method: track all vehicle expenses (fuel, insurance, repairs, oil changes) and multiply by your business-use percentage (rideshare km ÷ total km). You also claim CCA on the vehicle's purchase price. A mileage logbook is mandatory — record every trip.