If you drive for Uber, Uber Eats, Lyft, DoorDash, Instacart, or other gig platforms, you are generally considered self-employed in Canada. This means you can deduct reasonable business expenses that help you earn income, reducing the amount of tax you pay.
1. Vehicle Expenses
This is usually the largest deduction for Uber drivers.
You can claim the business-use portion of:
- Gas and fuel
- Oil changes
- Vehicle repairs and maintenance
- Car washes
- Insurance
- License and registration fees
- Interest on a vehicle loan
- Lease payments (subject to CRA limits)
Example:
If you drove 40,000 km during the year and 30,000 km were for Uber, your business-use percentage is 75%.
You can claim 75% of eligible vehicle expenses.
2. Capital Cost Allowance (CCA)
If you own your vehicle, you may be able to claim depreciation (CCA) on the business-use portion of the vehicle.
This spreads the vehicle cost over several years instead of deducting it all at once.
3. Cell Phone Expenses
Your smartphone is essential for:
- Uber Driver App
- GPS navigation
- Customer communication
- Trip management
You can claim the business portion of:
- Monthly phone plans
- Data plans
- Device financing costs
If 70% of your phone use is for Uber, you can generally claim 70% of eligible costs.
4. Parking Fees
Parking fees incurred while working are fully deductible.
Examples:
- Airport pickup parking
- Downtown parking while waiting for passengers
- Paid parking during deliveries
Keep all receipts. CRA allows business-related parking expenses.
5. Tolls
Business-related toll charges are deductible.
Examples:
- Highway 407 tolls
- Bridge tolls
- Other toll roads used while completing rides or deliveries
Keep statements and receipts as proof.
6. Accounting and Tax Preparation Fees
You can deduct fees paid to:
- Bookkeepers
- Accountants
- Tax professionals
This includes tax return preparation and bookkeeping services related to your Uber business.
7. Office Supplies
Business-related supplies may be deductible, including:
- Mileage logbooks
- Printer paper
- Ink cartridges
- Receipt organizers
- Business stationery
Keep receipts for all purchases.
8. Home Office Expenses
If you manage your Uber business from home, you may claim a portion of:
- Rent
- Utilities
- Internet
- Property taxes (if applicable)
- Home insurance
The deduction is based on the workspace area used for business.
9. Business Insurance
Additional insurance purchased specifically for rideshare activities may be deductible.
This can include:
- Rideshare endorsements
- Supplemental business-use coverage
CRA allows supplementary business insurance related to earning income.
10. Bank Charges and Business Software
You may deduct:
- Business bank account fees
- Payment processing fees
- Mileage tracking apps
- Bookkeeping software
- Expense tracking software
These costs are incurred to operate your business.