Uber fares now come with tax

Published: June 28, 2017

Updated: July 24, 2018

Author: Brad Neal

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Canada Day will also bring a new pricing model for Uber, with customers in Ontario now having to pay federal taxes on trips with the ridesharing company. The introduction was part of the 2017 federal budget.

In the budget, the government mandates HST and GST on Uber rides, a tax that will mean 13 percent added to fares for Ontarians. The new tax has been implemented since Canada Day on July 1.

“We have informed driver-partners and riders that as of July 1, the federal government will require HST/GST to be charged on all ridesharing trips in Canada,” said Uber spokesperson Susie Heath. “We remain committed to better our cities by helping Canadians reduce single-car occupancy and make greater use of affordable and reliable transportation alternatives.”

Uber will add the tax to gross fares and will also give drivers information so they can fulfil their own tax obligations.

The change is a major difference from when Uber first came to Canada. The company was illegally operating without regulations. Through 2016, the ride-share giant was given permission to enter many major cities legally.