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Industry tax guides

Rideshare and Taxi Driver Taxes in Canada: GST From the First Fare

$0is the GST/HST threshold for rideshare and taxi drivers: the $30,000 small supplier exemption does not apply to them.

Sources checked October 20263 min read

Key points

Rideshare and taxi drivers register for GST/HST when they start, whatever their revenue
Food delivery drivers follow the normal $30,000 small supplier threshold
The business share of vehicle costs is deductible, supported by a log of kilometres
Platforms report drivers' earnings to the CRA and send each driver a copy

One

GST/HST registration from day one

Taxi operators have always had to register for GST/HST regardless of revenue, and since July 2017 self employed commercial ride sharing drivers do too. The $30,000 small supplier threshold does not apply. Registration is effective from the first taxable ride, with the application due within 30 days. Using an app to collect fares does not shift the obligation: the driver is responsible for charging, collecting and remitting the tax on every fare.

Drivers can claim input tax credits for the GST/HST paid on expenses for their driving, and the quick method of calculating net tax is available where its conditions are met. Food delivery is different: drivers who only deliver goods register once taxable revenue passes $30,000, though they may register earlier.

Two

Vehicle expenses

A self employed driver deducts the business share of actual vehicle costs, including fuel, insurance, maintenance, licence and registration, lease payments or interest, and capital cost allowance, based on business kilometres over total kilometres. A log of every trip is the evidence that supports the share. The per kilometre rates the CRA publishes are for employer allowances, not for self employed drivers. A car bought for the business goes in Class 10 at 30%, or in Class 10.1 if it costs more than the $39,000 ceiling, which caps the cost that can be claimed.

The view from a car's back seat, with a seat belt and an open highway ahead

Three

Platform reporting

Since 2024, digital platform operators report information about the people who earn through them to the CRA, including identification details and the total paid to each seller by quarter, along with fees withheld. Each reportable seller receives a copy of the information about them by January 31 of the following year. Drivers should expect the CRA to compare those reports with the income on their returns.

Four

Quick answers

Do Uber and Lyft drivers need a GST number?

Yes. Self employed commercial ride sharing drivers must register for GST/HST from their first ride, whatever their revenue. The $30,000 threshold does not apply.

Do food delivery drivers need to register for GST?

Only once taxable revenue passes $30,000 over four calendar quarters, unless they also drive passengers. They can register earlier by choice.

Can I use the CRA's per kilometre rate for my own car?

Not as a self employed driver. The per kilometre rates set reasonable allowances employers pay employees; a self employed driver deducts the business share of actual costs.

Five

Official sources

Call or email and we will tell you which records we need and what the work costs, in writing, before anything starts.

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Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.