I drive for a rideshare app — what are my tax obligations in Ontario?
Rideshare drivers in Ontario are generally treated as self-employed individuals for income tax purposes. You must report all earnings from the platform on Form T2125 and can deduct eligible business expenses such as fuel, insurance, and vehicle depreciation against that income.
There is also a specific HST rule for ridesharing: under federal rules, ride-sharing services are deemed taxable supplies, which means you are required to register for and collect GST/HST on every fare regardless of your total revenue. The normal $30,000 small-supplier threshold does not apply to ridesharing income. Platforms may facilitate tax collection differently, so you should confirm with the platform what it remits on your behalf versus what you owe directly.
You also pay CPP contributions on your net self-employment income. Because no employer is withholding income tax throughout the year, you may need to make quarterly instalments to avoid a large balance and interest at filing time. Keeping detailed mileage logs and expense receipts is essential since vehicle costs are a significant deductible item.
Key takeaways
- Rideshare drivers are self-employed and must file a T2125 for business income and expenses.
- The $30,000 HST threshold does not apply — rideshare drivers must register for HST from the first dollar.
- CPP contributions and quarterly instalments may also apply.
- Detailed mileage and expense records are critical for maximizing deductions.