Updated Checked by the Tax-Services.ca editorial team How we check
DoorDash taxes in Canada come down to one rule: you’re self-employed, so you report every dollar the app pays you, tips included, and you pay both halves of CPP. On $30,000 of net delivery income in Ontario, the self-employed tax calculator shows $2,455.03 of income tax and $3,153.50 of CPP.
Are you an employee or self-employed on DoorDash?
Self-employed, in the eyes of the CRA’s guidance for delivery drivers. Nobody withholds tax from your payouts and there’s no T4. Your own records are what count, so screenshot the earnings tab every week and keep the bank deposits that match.
The CRA says delivery drivers must report all income, including tips, whether they work full time or a few evenings a week. That surprises people who think cash tips don’t count. They do.
What does a courier actually pay?
Three things stack up: income tax, CPP and, once you’re big enough, GST/HST. Here are the reference values we used.
| Item | Figure |
|---|---|
| CPP when self-employed, 2026 | 11.9% of earnings between $3,500 and $74,600 |
| GST/HST small supplier limit | $30,000 over four calendar quarters |
| Instalments start when tax owing is above | $3,000 ($1,800 in Quebec) |
| Instalment dates | March 15, June 15, September 15, December 15 |
| Vehicle logbook kept for | 6 years |
The CPP rate is twice the employee rate because you’re also the employer. Half of the base part comes off your income as a deduction, which softens it a little.
What does $30,000 of delivery income leave you with?
Take a courier in Ontario with $30,000 left after expenses. Federal tax is $1,455.23 and Ontario tax is $999.80, so income tax is $2,455.03. CPP for both halves is $3,153.50. Together that’s $5,608.53, or 18.7% of the income, and you keep $24,391.47.
Push it to $45,000 and the bill is $10,060.99: $5,122.49 of tax and $4,938.50 of CPP. Same job, same app, but the CPP share alone is more than a tenth of what you earn. Move the same $30,000 to Alberta and the total drops to $4,934.93, because Alberta tax is only $326.20 at that level.
Two gaps in the tool. It leaves out EI, and it doesn’t cover GST/HST. Use the take-home pay calculator if you also have a paid job on the side, and add that income in the tax tool as other income.
How much should you set aside from each payout?
A rule of thumb helps more than a spreadsheet. At $30,000 of net income the bill is about 18.7% of what’s left after expenses, so roughly $187 of every $1,000 of net should sit in a separate savings account instead of your chequing. Round it up to 20% for a cushion. That’s a ballpark for an Ontario courier with no other income, not a promise, and it climbs as your income does.
Notice it’s a share of net income, not of deposits. Fuel and repairs come out first.
What should a simple weekly routine look like?
Once a week, screenshot your earnings, note the kilometres driven for deliveries, and drop receipts into one folder. Move your set-aside money the same day. It takes ten minutes, and by tax time you have a year of records instead of a guess. If you also drive for another app, keep each one’s numbers apart.
Which delivery expenses can you deduct?
The CRA lets self-employed delivery drivers claim the fees the platform keeps and the goods and services you buy to earn income. For most couriers the big one is the vehicle: fuel, insurance, repairs, licence and, if you own the car, depreciation. The rule is that you claim only the business share, and you need receipts to back it up.
The best proof of a business share is a logbook. For each trip you write the date, the destination, the reason and the kilometres, and you note the odometer at the start and end of the year. Keep it for six years. If a full year gives you a business share of 70%, the CRA says a three-month sample can stand in for later years as long as usage stays within 10% of that base year.
What about the drive between orders? We couldn’t find a CRA ruling that settles it for delivery apps. Write down what you did and why, and keep the log honest.
When do you need to charge GST/HST?
Once you pass $30,000 over four calendar quarters, you must register and add GST/HST to what you charge. You can also register earlier if you want. After that you can claim input tax credits for GST/HST paid on expenses you incur to deliver. Check how the platform handles this on your payouts before you register, because it changes what you enter. The GST/HST calculator shows the tax on a given amount.
Ride-hailing is different. The CRA requires commercial ride-sharing drivers to register from the first dollar, and that rule doesn’t cover food delivery. If you do both, read the CRA’s ride-sharing page.
Common mistakes to avoid
The first is forgetting instalments. Once your tax owing crosses $3,000 in a year, the CRA expects payments through the year, and interest builds if you skip them. The tax instalments calculator splits the total into four equal payments.
The second is a thin paper trail. With no log and no receipts there’s no deduction, however real the costs were. Picture Jordan in Hamilton, who drove all year on gut feel and had nothing to show when the CRA asked. A five-minute weekly habit would have saved the claim. The third is treating the bank balance as income. Your deposits show what the app paid you, but tax runs on what’s left after expenses.
How were these figures checked?
Rates and limits are the 2026 federal and Ontario figures we verified against Canada Revenue Agency pages. The delivery-driver rules come from the CRA’s tax tip for ridesharing and delivery services and its motor vehicle record pages. The set-aside rule of thumb is our own arithmetic on the $30,000 example. This site isn’t linked to the CRA or to DoorDash.
Frequently asked questions
Do I pay tax on DoorDash tips?
Yes. The CRA says delivery drivers report all income, including tips, on their return.
Do DoorDash couriers get a T4?
No. You're self-employed, so nobody withholds tax and you report the income yourself on your return.
When do I have to register for GST/HST?
When your revenue passes $30,000 over four calendar quarters, or earlier if you choose to. Ride-sharing is a separate rule.
Can I deduct my car?
You can deduct the business share of vehicle costs if you have receipts. A logbook with date, destination, purpose and kilometres is the best proof.
How long do I keep my records?
The CRA asks for the logbook to be kept six years from the end of the tax year it was last used for.
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