Delivery Driver Taxes in Canada (DoorDash, Skip, Instacart)
Food and grocery delivery couriers are self-employed: they report their earnings on T2125 and claim the business part of their vehicle and phone.
What delivery drivers (doordash, skip, instacart) can usually deduct
- Business-use % of vehicle costs (fuel, insurance, repairs, licence)
- Bike or e-bike costs and repairs if you deliver by bike
- Phone and data plan (business share)
- Insulated bags and delivery gear
- Parking fees while delivering (not tickets)
Only the business part of a cost is deductible, and you need a receipt or record for each. See CRA's guide T4002.
GST/HST
Delivery of food or goods is not commercial ride-sharing, so the usual $30,000 small supplier rule generally applies — confirm with CRA, especially if you also drive passengers. Check with our GST/HST calculator.
Keep good records
Download your annual earnings summary from each app and keep a logbook of delivery km. Keep records for six years.
What to set aside — quick estimate
Your province
- Self-employed tax in Ontario
- Self-employed tax in Quebec
- Self-employed tax in British Columbia
- Self-employed tax in Alberta
- Self-employed tax in Manitoba
- Self-employed tax in Saskatchewan
- Self-employed tax in Nova Scotia
- Self-employed tax in New Brunswick
- Self-employed tax in Newfoundland and Labrador
- Self-employed tax in Prince Edward Island
- Self-employed tax in Yukon
- Self-employed tax in Northwest Territories
- Self-employed tax in Nunavut
Questions
Do DoorDash drivers in Canada pay GST/HST?
Delivery-only couriers generally follow the $30,000 small supplier rule. If you also drive passengers for ride-share, you must register from the first fare.
Are parking tickets deductible?
No. Fines and penalties are not deductible; parking fees paid while working are.