Delivery Driver

Tax guide for Canadian self-employed delivery drivers (DoorDash, Instacart, Uber Eats)

Allowable Expenses

  • Vehicle costs — Fuel, oil changes, insurance, repairs — business-use proportion
  • CCA on vehicle — Vehicle depreciation via CCA Class 10 or 10.1
  • Insulated bags & delivery equipment — Thermal delivery bags, car mount holders — deductible equipment
  • Platform service fees — Delivery platform commissions deducted before you receive payment
  • Phone & data plan — Business-use proportion of smartphone and data plan
  • Vehicle maintenance — Regular servicing, tyres, and mechanical maintenance on your delivery vehicle

Tax Tips

  • Track mileage for every delivery shift — date, starting address, ending odometer, and total km
  • DoorDash, Uber Eats, and Instacart service fees deducted from your earnings reduce your taxable income
  • Insulated delivery bags purchased for keeping food at temperature are deductible equipment
  • Register for GST/HST once delivery income exceeds C$30,000 across all platforms combined

Frequently Asked Questions

Are tips from delivery customers taxable in Canada?

Yes — all tips received, whether in cash, in-app, or through the platform, are business income and must be declared on Form T2125. Tips are subject to income tax and CPP contributions just like regular delivery earnings.

Related Professions

  • Rideshare Driver