Hey, delivery drivers! Let’s get real about taxes—it’s a must-do, but with the right support, it can be painless.
With over 7 years of experience and thousands of successful returns filed specifically for courier and food delivery drivers, our team at Instaccountant specializes in the unique tax needs of self employed individuals like you. From reporting income accurately to maximizing your eligible deductions on expenses like fuel, maintenance, mileage, and mobile usage, we get the job done so you can keep more of what you earn.
Whether you’re delivering for UberEats, DoorDash, Amazon, or your local courier or food delivery service, you’re more than just a driver—you’re a business owner. You’ve got unique tax responsibilities, especially when filing as self employed (or an independent contractor). Our team works with thousands of courier and food delivery drivers to help you understand what you need to track, claim, and report to stay compliant with CRA requirements. No matter the platform UberEats, Instacart, or others, we’re here to handle the tax side so you can focus on your deliveries.
As a self-employed UberEats or food delivery driver in Canada, you’re required to report your income and expenses on your personal tax return each year. The Canada Revenue Agency (CRA) considers your courier or food delivery earnings as business income, which means they are fully taxable and must be included on your T1 tax return using Form T2125.
Every fare, tip, and incentive you earn counts toward your total taxable income. To reduce your tax burden and stay compliant, it’s essential to maintain accurate bookkeeping and detailed records of your expenses. Here are some of the most common deductible expenses for UberEats and delivery drivers:
Fuel and maintenance: Track all gas, oil changes, car washes, and repair costs related to your delivery business.
Insurance: Deduct the business-use portion of your vehicle insurance premium.
Vehicle expenses: Claim the business-use percentage of costs such as depreciation (capital cost allowance), loan interest, and lease payments.
Bike or e-bike expenses: If you deliver using a bicycle or e-bike, you can deduct related costs such as equipment, maintenance, batteries, and accessories.
Other business expenses: Include cell phone bills, delivery bags, accounting or online tax filing fees, and other work-related costs.
Keeping organized digital records helps you maximize tax deductions and avoid CRA issues. Our online tax accountants for UberEats delivery drivers make it easy to file your taxes, claim every eligible expense, and ensure full CRA compliance for 2025.
Filing your income tax return as a delivery driver is more than just submitting your T4A slips or business expenses. Our team carefully reviews your total income, from delivery fees to tips, and optimizes your deductions, so you pay only what’s required and nothing extra. As independent contractor or self-employed, delivery drivers can claim a variety of business-related expenses, so we ensure each one is recorded and documented to reduce your taxable income effectively.
With over 7 years of experience working with thousands of courier drivers and food delivery drivers in Canada, we understand the unique tax challenges you face. From accurately reporting income to handling GST/HST obligations and maximizing tax deductions specific to delivery services, our expertise ensures you receive tailored advice for your situation. Let us help you navigate the tax filing process smoothly, so you can stay compliant with CRA requirements and focus on your deliveries.
Here are some common tax issues delivery drivers face that can lead to audits or penalties—definitely things to avoid! Partnering with an expert accountant who understands delivery driver taxes can help you sidestep these issues so you can stay focused on earning.
Misreporting income is one of the biggest tax challenges for delivery drivers. With income coming in from various delivery apps, it’s easy to miss a few sources, like bonuses, tips, or earnings from secondary apps.
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Keeping accurate records of your business expenses is essential but often a challenge for delivery drivers.
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Understanding which expenses qualify as tax-deductible is crucial to avoid overpaying.
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A lot of our team members, including the founder have worked as incorporated contractors (consultants) for small to large sized organizations in the field of accounting, tax, and management consulting. This exposure makes us better understand the problems faced and the expectations you would have from your accountant as a self-employed.
With a hectic schedule, it’s easy to forget tax deadlines. But late filings can be costly.
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Mileage is a significant deductible for delivery drivers, yet many overlook it.
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Using a bike, e-bike, or cycle as a delivery driver can save on fuel and maintenance costs, but many drivers overlook these as deductible business expenses on their tax returns.
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Yes. All tips and gratuities earned as an UberEats or delivery driver are considered taxable income by the Canada Revenue Agency (CRA). You must include them when reporting your total self-employment income on your tax return.
Yes, if your annual delivery income exceeds $30,000, CRA requires you to register for GST/HST. Even if you earn less, voluntary registration can allow you to claim input tax credits (ITCs) on fuel, maintenance, and other expenses. Our online tax accountants can guide you through the registration and filing process.
Absolutely. You can claim the business-use percentage of your fuel, repairs, insurance, lease payments, and even depreciation as deductible vehicle expenses. Keeping accurate mileage and expense records ensures you claim the maximum deduction allowed by CRA.
Filing errors or missed income can result in CRA reassessments, penalties, and even tax audits. Working with an experienced tax accountant for UberEats and delivery drivers ensures your taxes are filed correctly, on time, and fully compliant with CRA standards.
Zoombooks is an expense tracking app for Ubereats, Doordash, or other delivery drivers. It helps drivers save tax and stay on top of financials.
Zoombooks is “built by accountants for self-employed”.
Download Zoombooks, its free!