Are tips, quests and referral bonuses taxable for gig drivers?
Yes, all of them. Cash tips, in-app tips, surge bonuses, quests and referral payments are business income. How to track them, including cash.
Filing as a rideshare driver looks complicated the first time because you're doing two returns: your income tax return and your GST/HST return. Once you've done it once, it's the same routine every year.
Step 1: Gather your paperwork
- Your Uber tax summary. Uber provides monthly and annual summaries with your gross fares and the sales tax collected on your trips. It's a helpful record, not an official CRA slip.
- Summaries from any other apps you drove or delivered for.
- Your mileage log and your odometer readings from the start and end of the year.
- Receipts for fuel, repairs, insurance, your phone plan and anything else you bought for the business.
- Your GST/HST number. Every rideshare driver needs one, and Uber asks for it.
Step 2: Work out your income
Your gross fares on the Uber summary include amounts that never reach you, like Uber's service fee and booking fee, airport fees and tolls. They also include the GST/HST charged to riders, which isn't your income.
A common approach is to report fares plus tips as income, then deduct the fees Uber kept as a business expense. Take the GST/HST out of your income, because you'll send it to the CRA on your GST/HST return. If you use the Quick Method for GST/HST, the portion of tax you keep does count as income.
Step 3: Fill out Form T2125
The T2125 is where your business income and expenses go. Key lines:
- Gross business income (line 8299): your fares and tips, without GST/HST
- Motor vehicle expenses (line 9281): fuel, insurance, repairs, car washes and licence fees, multiplied by your business-use percentage
- Capital cost allowance (line 9936): depreciation on your car, also prorated
- Telephone and utilities (line 9220): the business share of your phone plan
- Fees the platform keeps: service and booking fees you included in your income
Your net profit flows to your tax return, where it's taxed along with any other income you have.
Step 4: CPP on your profit
Because you're self-employed, you pay both halves of CPP on your net profit above $3,500. Tax software calculates it on Schedule 8 automatically once your T2125 is done.
Step 5: File your GST/HST return
Report the GST/HST included in your fares, subtract the input tax credits for GST/HST you paid on business expenses, and send the difference. Most drivers file once a year.
Rideshare fares include the tax. In Ontario, the HST in a fare is 13/113 of the total. So on $22,600 of fares, $2,600 is HST.
Deadlines for the 2026 tax year
| What | When |
|---|---|
| Pay any income tax owing | April 30, 2027 |
| File your income tax return | June 15, 2027 |
| Pay any GST/HST owing (annual filers) | April 30, 2027 |
| File your annual GST/HST return | June 15, 2027 |
Filing late when you owe money adds a penalty of 5% of the balance plus 1% for each full month late, up to 12 months. Interest also starts the day after the April 30 payment date.
How MyGigLedger helps
MyGigLedger keeps your payouts, trips and receipts in one place and totals them by T2125 line. At tax time, the export gives you the numbers for each step above, so filing is mostly typing.
Sources
This article is general information based on CRA guidance as of September 29, 2026. It isn't tax advice. Rules change, and your situation may differ, so check with the CRA or a tax professional before you file.