Gig Economy Taxes: Uber, DoorDash, Airbnb & More

Understanding Gig Economy Income

Gig economy income includes earnings from platform-based work where you're not an employee. Common examples include:

• Rideshare: Uber, Lyft
• Food delivery: DoorDash, Skip the Dishes, Uber Eats, Instacart
• Short-term rentals: Airbnb, VRBO
• Freelance work: Fiverr, Upwork
• Online selling: Etsy, eBay, Amazon
• Task-based work: TaskRabbit, Handy

How to Report Gig Income

Report your gig income on Form T2125 (Statement of Business Activities), which is part of your T1 personal tax return.

What to Report

• Gross income: Total earnings before platform fees
• All income sources: Even if you didn't receive a tax slip
• Tips: All tips received, including cash
• Bonuses: Promotions, referral bonuses, incentives

Common Deductible Expenses

For Rideshare & Delivery Drivers

• Vehicle expenses: Gas, maintenance, repairs, car washes
• Insurance: Commercial rideshare insurance (not personal)
• Phone & data plan: Business-use percentage
• Parking fees: When working (not personal errands)
• Tolls: Highway tolls for work trips
• Supplies: Phone mounts, charging cables, cleaning supplies
• Platform fees: Commissions paid to Uber, DoorDash, etc.

For Airbnb Hosts

• Platform fees: Airbnb service fees
• Cleaning costs: Professional cleaning services
• Supplies: Toiletries, linens, towels
• Utilities: Proportionate share of electricity, water, internet
• Insurance: Additional short-term rental coverage
• Repairs & maintenance: Fixing things for guests
• Furniture & decor: Items for rental space (capital cost allowance)
• Property taxes & mortgage interest: Proportionate share

For Online Sellers (Etsy, eBay)

• Platform fees: Listing fees, transaction fees
• Materials: Cost of goods sold
• Shipping supplies: Boxes, tape, labels
• Shipping costs: Postage (not reimbursed by buyer)
• Payment processing: PayPal, Stripe fees
• Home office: If you have dedicated workspace
• Photography: Equipment for product photos

Vehicle Expense Methods

For rideshare and delivery drivers, choose one method to calculate vehicle expenses:

Method 1: Actual Expenses

Track all actual vehicle costs, then multiply by business-use percentage:

• Gas and oil
• Repairs and maintenance
• Insurance
• License and registration
• Interest on car loan
• Lease payments
• Capital cost allowance (depreciation)

Method 2: Simplified (Per-Kilometer)

Track business kilometers and use CRA's prescribed rates:

• 2024 rates: $0.70/km for first 5,000 km, $0.64/km thereafter
• Must keep a detailed mileage log
• Cannot claim CCA or actual expenses with this method

Keeping a Mileage Log

A proper mileage log should include:

• Date of each trip
• Starting and ending odometer readings
• Destination and purpose
• Total kilometers driven

Apps like Stride, Everlance, or MileIQ can automate this tracking.

GST/HST Requirements

$30,000 Threshold

You must register for GST/HST if your worldwide taxable supplies exceed $30,000 in any single calendar quarter or over four consecutive quarters.

Rideshare Exception

Uber and Lyft drivers must register for GST/HST from their first ride—there's no $30,000 threshold for taxi and rideshare services.

Once Registered

• Charge GST/HST on your services
• Claim Input Tax Credits (ITCs) on business expenses
• File GST/HST returns (usually quarterly or annually)

Airbnb GST/HST

• Short-term rentals (under 30 days) are generally taxable
• $30,000 threshold applies
• Long-term rentals (30+ days) are typically exempt

CPP Contributions

As a self-employed person, you pay both the employee and employer portions of CPP:

• 2024 rate: 11.9% of net self-employment income
• Maximum contribution: ~$7,735
• Exemption: First $3,500 of net income

Half of your CPP contribution is deductible on Line 22200 of your return.

Quarterly Instalment Payments

If you expect to owe more than $3,000 in taxes (or $1,800 in Quebec), you may need to make quarterly instalments:

• Due dates: March 15, June 15, September 15, December 15
• Penalty: Interest charged on late or insufficient payments
• First year: Usually not required in your first year of self-employment

Platform-Specific Considerations

Uber/Lyft

• GST/HST registration required from first ride
• Must have commercial auto insurance
• Tax summaries available in driver app
• Tips are taxable income

DoorDash/Skip the Dishes

• $30,000 threshold applies for GST/HST
• Delivery bags may be deductible
• Base pay + tips = total income

Airbnb

• Report on T776 if treating as rental property
• Report on T2125 if providing significant services (like B&B)
• Platform provides income summaries
• Municipal rules may apply (permits, taxes)

Etsy/Online Selling

• Track inventory costs carefully
• Distinguish between business income and hobby
• Cost of goods sold = opening inventory + purchases - closing inventory

Record Keeping Requirements

Keep these records for 6 years:

• All income records and payment summaries
• Receipts for every expense claimed
• Mileage log (if claiming vehicle expenses)
• Bank statements showing deposits
• Credit card statements for business purchases
• Home office measurements (if claiming)

Common Mistakes to Avoid

• Not reporting all income: Including cash tips and bonuses
• Claiming personal expenses: Only business-use portion is deductible
• No mileage log: CRA can deny vehicle claims without documentation
• Missing GST/HST registration: Especially for rideshare drivers
• Not setting aside tax money: Self-employed don't have source deductions
• Mixing personal and business: Use separate accounts if possible

Tax Planning Tips

• Set aside 25-30% of each payment for taxes
• Track expenses year-round using apps or spreadsheets
• Consider RRSP contributions to reduce taxable income
• Max out TFSA to shelter investment growth
• Keep business bank account separate for easier tracking