Top 5 Uber Eats Tax Deductions to Claim in 2025 (Canada)

Delivering meals for Uber Eats in Canada offers a flexible way to earn, but it also comes with tax responsibilities. As an independent contractor, you're responsible for managing your taxes, including understanding eligible deductions. This post highlights the top 5 tax deductions Canadian Uber Eats drivers should claim in 2025.

Understanding Your Tax Situation

As an Uber Eats driver, you're considered self-employed, not an employee. This means you're responsible for calculating and paying income tax, CPP contributions, and potentially GST/HST. Understanding eligible deductions is crucial to minimizing your tax burden.

UberEats tax deductions in are based on the business-use portion of an expense. You can only deduct the percentage directly related to your Uber Eats deliveries. Accurate record-keeping is essential to prove business use to the Canada Revenue Agency (CRA).

Top 5 Tax Deductions for Uber Eats Drivers

1. Vehicle Expenses:

As an Uber Eats driver, your vehicle is crucial to your business. You can deduct a portion of expenses such as:

• Gas
• Maintenance and repairs
• Insurance
• License and registration fees
• Depreciation (based on business use of the vehicle)

Be sure to track your kilometers driven for both personal and business use to calculate the deductible portion accurately.

Note: If you use a bicycle or e-bike for deliveries, you can deduct expenses related to its maintenance (batteries) and repairs.

2. Cell Phone Expenses:

Since you rely on your phone for deliveries, you can deduct a portion of your phone bill, including the cost of your phone and data plan, based on the business use. Keep track of your business-related calls, apps, and GPS usage to determine the correct percentage for your deduction.

3. Supplies:

These small extras for customers can add up:

• Hot bags
• Insulated containers
• Catering supplies

4. Professional Fees:

If you consult a tax professional or accountant for your Uber Eats tax return filing, their fees are deductible.

5. Car Rental or Lease Payments:

If you rent or lease a vehicle for Uber Eats, you can deduct the rental or lease payments. This applies to both short-term rentals and long-term leases, but the deduction is based on the percentage of business use.

Important Considerations for Uber Eats Drivers

• Mileage Log is Crucial: A detailed mileage log is essential for justifying vehicle expense claims. Use a mileage tracking app or a physical logbook.
• Keep ALL Expense Receipts: Digital or paper, keep records of every business-related expense.
• GST/HST Registration: As an Uber Eats driver, you are required to register for GST/HST once your revenue reaches $30,000 in a single calendar quarter or over four consecutive calendar quarters. You'll collect GST/HST from customers and remit it to the CRA. You can also claim Input Tax Credits (ITCs) on eligible business expenses.

Don't Leave Money on the Table!

Being organized and understanding these deductions can significantly impact your tax bill. Consult with a tax professional specializing in delivery drivers for personalized advice. They can help you maximize your deductions and ensure you're complying with all CRA regulations.

Final Thoughts

Filing taxes as an Uber Eats or any other delivery driver can be challenging, but you don't have to do it alone. Working with a qualified accountant who specializes in Uber Eats taxes, like Instaccountant, can make all the difference. Our expert team provides tailored guidance to help you maximize deductions, stay compliant, and minimize tax-related stress. Whether you're new to the gig economy or a seasoned driver, we ensure your tax filing is handled efficiently and accurately.

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