First Principle: Untaxed ≠ Tax-Free

Your Uber payouts are “untaxed” because Uber does not withhold income tax or payroll tax for you. The income is still taxable. In the U.S., that means federal income tax plus self-employment tax (Social Security and Medicare). In Canada, that means income tax and, for passenger trips, GST/HST (and QST in Québec). See the official references in the footnotes.

Canada: What to Do (Step-by-Step)

1) Register correctly if you drive passengers

• GST/HST registration is required for taxi and commercial ride-sharing—even if you are a small supplier. :contentReference[oaicite:0]{index=0}
• CRA’s ride-sharing memo explains how GST/HST applies and how to calculate tax included in fares. :contentReference[oaicite:1]{index=1}
• Québec: Under Revenu Québec agreements, platforms like Uber often collect and remit TPS/TVQ on your behalf for trips done through the platform if you have no other commercial activities; confirm your own situation in the app and with Revenu Québec. :contentReference[oaicite:2]{index=2}

2) Track income and deductible expenses

• Use Form T2125 categories: fuel, maintenance, insurance, lease/interest, licensing, parking, tolls, phone, supplies. Motor-vehicle expenses are prorated by business-use %. :contentReference[oaicite:3]{index=3}
• Keep a logbook: full year once to establish a base year, then a 3-month sample each year if usage stays within 10% of the base. :contentReference[oaicite:4]{index=4}
• There is no CRA per-km standard rate for self-employed; you deduct actual costs by business-use %. :contentReference[oaicite:5]{index=5}

3) Set aside cash for income tax and CPP

• Self-employed Canadians pay both the employee and employer CPP shares (combined rate applies to net self-employment earnings up to the annual limit). :contentReference[oaicite:6]{index=6}
• Consider quarterly instalments if your net tax owing exceeds thresholds (generally >$3,000; Québec >$1,800). :contentReference[oaicite:7]{index=7}

4) File and remit

• Income tax return with T2125 for business income/expenses. :contentReference[oaicite:8]{index=8}
• GST/HST return reporting net tax (GST/HST collected minus input tax credits on ride-share expenses). Uber’s Canada tax info page summarizes the flow. :contentReference[oaicite:9]{index=9}

U.S.: What to Do (Step-by-Step)

1) Expect self-employment tax and income tax

• Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare), plus a 0.9% Additional Medicare Tax above certain income thresholds. :contentReference[oaicite:10]{index=10}
• Report net earnings on Schedule C and compute SE tax on Schedule SE with your Form 1040. (General rules and deadlines in IRS Pub. 505.) :contentReference[oaicite:11]{index=11}

2) Make quarterly estimated payments

• Typical due dates for calendar-year filers: April 15, June 15, Sept. 15, and Jan. 15 of the following year. :contentReference[oaicite:12]{index=12}

3) Understand your forms (but file all income regardless)

• Drivers may receive a 1099-K (for rider payments processed through the platform) and/or 1099-NEC (for incentives/adjustments). You must report all income even if you receive no form. :contentReference[oaicite:13]{index=13}
• Third-party 1099-K thresholds are in transition. IRS announced phased thresholds: $5,000 (2024), $2,500 (2025), then $600 in 2026 and after—applies to third-party networks broadly. Your Uber taxation still applies regardless of thresholds. :contentReference[oaicite:14]{index=14}

4) Track deductions

• Standard mileage rate (2025): 70¢/mile for business. Alternatively, deduct actual vehicle expenses; choose one method per vehicle per year as IRS rules allow. :contentReference[oaicite:15]{index=15}
• Other common deductions: tolls/parking, phone, supplies, part of insurance/lease/interest, and applicable fees—if ordinary and necessary for the business. See Pub. 505 and Schedule C instructions. :contentReference[oaicite:16]{index=16}

Best Practices That Protect Your Cash

FAQs

Is Uber income “tax-free” because no tax is taken off?

No. It is untaxed at deposit but taxable when you file. Canada adds GST/HST/QST rules for passenger trips. U.S. adds self-employment tax. :contentReference[oaicite:21]{index=21}

Do I need a GST/HST number in Canada?

If you provide passenger rides via an electronic platform, you must register and charge GST/HST, even if you are a small supplier. Québec riders may see TPS/TVQ collected/remitted by the platform under agreements—confirm your status. :contentReference[oaicite:22]{index=22}

What U.S. tax forms should I expect?

Often 1099-K and/or 1099-NEC. Thresholds for 1099-K issuance are changing, but you must report all income regardless. :contentReference[oaicite:23]{index=23}

When are quarterly payments due?

U.S.: Apr 15, Jun 15, Sep 15, Jan 15 (following year). Canada: instalments if you exceed net-tax-owing thresholds; dates appear on CRA reminders. :contentReference[oaicite:24]{index=24}

Can I use a per-km rate in Canada like the U.S. mileage rate?

No standard rate for self-employed. Deduct actual costs proportionate to business use using a logbook. :contentReference[oaicite:25]{index=25}

Talk to a Pro with This Checklist

• Annual gross payouts and platform fees
• Vehicle logbook/mileage summary
• Fuel, maintenance, insurance, lease/interest totals
• Phone and supplies used for driving
• Canada: GST/HST/QST registration and filing cadence; input tax credits
• U.S.: Choice of mileage vs actual; quarterly estimates paid; SE tax considerations

We are not tax advisers. Use this guide to prepare for a substantive conversation with a qualified professional.

Guide current as of November 2025. Always check CRA/IRS pages for updates.