Guide · Canada · Updated June 1, 2026 · Reviewed by the NorthOS team

What Gig Workers Actually Keep in Canada (2026)

The number on your Uber, DoorDash, or Etsy dashboard is not what you keep. After your vehicle, CPP, and income tax, a Canadian gig worker takes home a good deal less. The math is not hard once you know the rules, and one of those rules trips up almost every new driver.

The vehicle rule that trips people up

The single biggest deduction for a driver is the vehicle, and Canada has a specific rule that catches people. As a self-employed person you cannot use the CRA per-kilometre rate. That rate is a guideline for employers reimbursing their employees. You deduct your actual vehicle costs (fuel, insurance, maintenance, and lease payments or depreciation) multiplied by your business-use percentage, which is your business kilometres divided by your total kilometres for the year. This is the method on Form T2125.

Worked example

Take a DoorDash driver in Ontario: $30,000 in earnings, 1,250 hours, 20,000 business kilometres out of 28,000 total, and $9,000 in vehicle costs for the year. (These are example inputs, not an estimate of what any driver earns.)

  • Business-use: 20,000 ÷ 28,000 = 71%
  • Vehicle deduction: $9,000 × 71% = $6,429
  • Net self-employment income: $23,571
  • CPP: $2,388
  • Federal + Ontario income tax: ~$1,304
  • Real take-home: ~$19,879
  • Real hourly rate: $19,879 ÷ 1,250 = ~$15.90/hr

The earnings looked like roughly $24/hour. After the car and the taxes, the truth is about $15.90. Change any input and the answer moves, which is exactly why it is worth running your own numbers rather than trusting the dashboard.

Platform fees: where you start matters

For rideshare and delivery (Uber, Lyft, DoorDash, Uber Eats, Instacart), the app already took its cut, so you start from what it paid you. For marketplaces you start from gross sales and subtract the fee: roughly 10% on Etsy, 13.25% on eBay, 20% on Fiverr, and 15.5% for an Airbnb host on the host-only fee. The calculator handles each one.

CPP and income tax come next

Whatever is left after expenses is your net self-employment income, and it gets hit by two things: CPP at 11.9% on income above $3,500, and federal plus provincial income tax. Our self-employed CPP guide breaks down the CPP side, and the CPP calculator gives you the dollar figure.

The $30,000 GST/HST line

One thing this calculator does not cover is GST/HST. Once your gross revenue passes $30,000 over four consecutive quarters, you generally have to register and start charging it. That is its own topic with its own rules. NorthOS has a full guide on when to register for GST/HST.

This guide is general information, not tax advice. The worked example uses assumed inputs to show the method. Your numbers will differ. For full bookkeeping and GST/HST help, see NorthOS.

Frequently asked questions

Can I use the CRA per-kilometre rate as a self-employed driver?
No. The CRA per-kilometre rate is a guideline for employers reimbursing employees. As a self-employed person you deduct your actual vehicle costs (fuel, insurance, maintenance, lease or depreciation) multiplied by your business-use percentage. Using the per-km rate on a T2125 is a common error the CRA can disallow on review.
How do I work out my business-use percentage?
Divide the kilometres you drove for work by your total kilometres for the year. If you drove 20,000 business kilometres out of 28,000 total, your business-use is about 71%, so you can deduct 71% of your total vehicle costs.
Do tips count as income?
Yes. Tips are part of your self-employment income whether they come through the app or in cash, and they are included in the earnings you report.
Do I owe CPP on gig income?
Yes, once your net self-employment income passes the $3,500 basic exemption. Self-employed people pay 11.9% base CPP for 2026. See our self-employed CPP guide for the full breakdown.
When do I have to register for GST/HST?
Once your gross revenue passes $30,000 over four consecutive calendar quarters, you generally have to register for GST/HST and start charging it. The mechanics are their own topic. NorthOS has a full guide on when and how to register.

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