Do you pay taxes on car advertising income? Canada and US basics
Yes — car advertising income is taxable in the US and Canada. Lunar issues a 1099 (US) or T4A (Canada) via Stripe once you cross reporting thresholds.
Yes. Money you earn from car advertising — including Lunar's typical $280–$400/month for multiple stickers — counts as taxable income in both the US and Canada. Lunar pays drivers monthly through Stripe Connect, which also issues the relevant tax forms: a 1099 in the US and a T4A in Canada, once you cross the applicable reporting threshold. This is general information, not tax advice — talk to a tax professional about your specific situation.
Is car advertising income actually taxable?
In both countries, income is income regardless of the source. The IRS and the CRA don't care whether a payment came from a job, freelance work, or a decal on your car door — if it's money paid to you for something you did (in this case, driving with a verified sticker and letting Lunar track mileage), it's reportable. There's no special exemption for small or 'passive' side income.
How does Lunar report your earnings?
Lunar pays drivers monthly via Stripe, and Stripe Connect handles the tax-form side of things — generating a 1099 for US drivers and a T4A for Canadian drivers once you're above the threshold that requires one. You'll set up your tax details (SSN or SIN, address, etc.) inside your Stripe account when you start receiving payouts. Keep that information current; a mismatch is the most common reason a form goes to the wrong address.
What should US drivers expect at tax time?
US drivers earning above the IRS threshold for a given tax year will receive a 1099 form through Stripe, summarizing what Lunar paid them over the year. That amount gets reported as income on your federal return, and depending on your state, potentially a state return too. If your total car-advertising income is below the reporting threshold, you may not receive a form automatically — but you're still expected to report the income yourself. Self-employment tax rules can also apply depending on how the IRS classifies this kind of side income, which is exactly the kind of detail a tax professional should confirm for your situation.
What should Canadian drivers expect at tax time?
Canadian drivers earning above the CRA's reporting threshold will get a T4A slip through Stripe summarizing the year's payouts. That income goes on your T1 personal tax return. As with the US, income below the automatic-slip threshold still needs to be reported — the absence of a form doesn't mean the income is exempt. If you're in Vancouver and unsure how this interacts with GST/HST obligations or other side income, a Canadian tax preparer can walk through your specific numbers.
Can you deduct any expenses against car advertising income?
Possibly, but this depends entirely on your personal tax situation, your country, and how your income is classified — it's genuinely not something to guess at. Vehicle-related deductions have specific rules in both the US and Canada, and mixing personal driving with any income-generating driving adds complexity. This is the single best reason to loop in a tax professional before you file, rather than after.
Does joining Lunar cost anything, and does that affect taxes?
Joining Lunar is free — there's no fee or deposit to become a driver, so there's no offsetting cost to factor in on that front. Your reportable income is simply what Stripe paid out to you over the year, shown on your 1099 or T4A if you're above threshold.
- Lunar pays a flat $70/month base per sticker, up to $100/month with bonuses
- Typical earnings are $280–$400/month across multiple stickers (up to 4 spots per car)
- Payouts are monthly, via Stripe Connect
- US drivers may receive a 1099 through Stripe once above the IRS reporting threshold
- Canadian drivers may receive a T4A through Stripe once above the CRA reporting threshold
- Joining Lunar is free — no fees or deposits to account for
None of this is tax advice — it's a plain-English map of where the forms come from and what to expect. Every driver's situation is different depending on other income, province or state, and filing status, so the responsible move in 2026 is the same as any year: keep your Stripe details accurate, save your monthly payout records, and bring them to a tax professional before you file.
Frequently asked questions
Do I have to pay taxes on Lunar earnings?
Yes. Car advertising income is taxable in both the US and Canada, regardless of the amount. Lunar pays through Stripe, which issues a 1099 (US) or T4A (Canada) once you're above the applicable reporting threshold — but you're expected to report the income either way.
Will Lunar send me a tax form automatically?
If your yearly earnings are above the IRS or CRA reporting threshold, Stripe Connect will generate a 1099 or T4A for you automatically. If you're below that threshold, you may not get a form, but the income is still reportable on your return.
Is car advertising income considered self-employment income?
This depends on how your tax authority classifies the payment type and your overall situation, which varies person to person. A tax professional can confirm how it should be classified on your specific return — this is general information, not tax advice.
Can I deduct mileage or car expenses from this income?
Possibly, but vehicle-expense deductions have specific rules in both countries and depend on how your driving and income are classified. Ask a tax professional before assuming any deduction applies to your situation.
Does it cost anything to join Lunar, which I'd need to account for at tax time?
No. Joining Lunar is free — there's no fee or deposit — so there's no cost to offset against your earnings. Your reportable income is simply the total Stripe paid you over the year.
Ready to get started? Local drivers, local businesses, city by city.
Join as a driver Advertise with Lunar