CRA Mileage Deduction for Canadian Food Delivery Drivers
Canadian food delivery drivers working for platforms such as SkipTheDishes, DoorDash, Uber Eats, and Instacart are classified as self-employed independent contractors by the Canada Revenue Agency. That classification means you file business income on form T2125 and can deduct business kilometres at the CRA's current reasonable per-kilometre rate.
CRA 2026 per-kilometre rate for delivery drivers
The CRA's reasonable per-kilometre rate for 2026 is $0.73 per kilometre for the first 5,000 business kilometres driven in the year and $0.67 per kilometre for every kilometre after that. Drivers whose work base is in the Northwest Territories, Yukon, or Nunavut receive an additional $0.04 per kilometre on top of both tiers.
A driver completing 10,000 business kilometres in 2026 claims: 5,000 km x $0.73 = $3,650 (first tier) plus 5,000 km x $0.67 = $3,350 (second tier) = $7,000 total deduction at the per-km rate.
The alternative is to claim actual vehicle expenses - fuel, insurance, maintenance, registration, and depreciation through capital cost allowance - prorated by the business-use percentage. The per-km method is simpler and does not require individual expense receipts, but high-mileage drivers with expensive vehicles sometimes come out ahead with the actual-expenses calculation. Per CRA guidance at canada.ca, you can choose between the two methods each year.
GST/HST registration: the $30,000 threshold
Canadian food delivery drivers are subject to the standard CRA small-supplier threshold: you are required to register for GST/HST once your revenue from all commercial activities exceeds $30,000 over any four consecutive calendar quarters.
This is different from the Australian rules, where rideshare drivers must register for GST from the first dollar. Canada applies the $30,000 threshold to all gig work, including rideshare and food delivery. Most part-time delivery drivers fall below this threshold and are not required to register.
Voluntary registration below $30,000 is possible and can be worthwhile: a registered driver can claim input tax credits on vehicle expenses (the GST or HST portion of fuel, insurance, and maintenance), reducing the net cost of running the car for the business. The CRA guidance on GST/HST for self-employed Canadians is at canada.ca.
Deductible delivery trips
Driving from your previous delivery stop (or your home if home is your business base) to a restaurant after accepting an order.
Driving from the restaurant to the customer's address.
Repositioning between orders to return to a higher-demand area.
Driving to a platform's support location for account or equipment issues.
The drive from home to your first pickup of the shift may be deductible if your home is your business base - where you store delivery equipment and where the delivery activity is organised. The CRA applies a facts-and-circumstances test; document that there is no fixed employer location you report to.
Reporting on T2125
Business income from delivery platforms goes on form T2125 (Statement of Business or Professional Activities), part of your T1 personal income tax return. The platforms issue T4A slips reporting what they paid you; include that amount as business income on T2125.
Under the per-km method, multiply your total business kilometres for the year by the applicable CRA rate ($0.73 for the first 5,000 km, $0.67 after) and enter the result in the motor vehicle section of T2125. You do not list individual fuel or insurance receipts under the per-km method.
Keep a mileage log with the date, destination, business purpose, and kilometres for every business trip. The CRA expects the log to be contemporaneous - recorded at or near the time of the trip. Keep logs for six years from the end of the tax year they relate to, per the CRA's record-retention requirement in section 230 of the Income Tax Act.
FAQ
Do I need to file taxes for food delivery income in Canada?
Yes. Self-employment income from platforms is fully taxable income. The platforms issue T4A slips for earnings. You include that income on your T1 return and deduct eligible business expenses on T2125. The CRA matches T4A filings against returns and can identify unreported income.
Can I combine mileage from DoorDash, SkipTheDishes, and Uber Eats on one T2125?
Yes. All three are the same type of self-employment activity - food delivery contractor. Combine the income from all platforms and combine the total mileage into one T2125 for your delivery business. Keep separate earnings records from each platform, but file them as one business.
The platform already includes a per-km payment in my earnings. Does that affect my CRA claim?
Platform mileage payments are included in your gross business income on the T4A. You then deduct business kilometres at the CRA rate on T2125. The deduction offsets the income. You cannot deduct kilometres for which you have already received a full CRA-rate reimbursement - that would claim the same kilometres twice. Document what each platform pays per km versus what the CRA rate produces and deduct only the net difference if the platform underpays.
Track your Canada business mileage.
Free for 40 auto trips a month. CRA rates handled with the right tier and cap.
Download free on the App Store