Do you pay taxes on car advertising income? Canada and US basics
Yes — car advertising income is taxable in the US and Canada. Lunar drivers are responsible for their own taxes and should keep their own record of payouts.
Yes. Money you earn from car advertising — including up to $500 a month from Lunar with multiple stickers — counts as taxable income in both the US and Canada. Lunar pays drivers monthly through Stripe. You're responsible for your own taxes and should keep your own record of every payout. 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 on your car), it's reportable. There's no special exemption for small or 'passive' side income.
Who handles the taxes on Lunar earnings?
Lunar pays drivers monthly via Stripe, and you're responsible for your own taxes. Keep your own record of every payout — the date and the amount — so you can add up what you were paid over the year and bring those numbers to a tax professional before you file.
What should US drivers expect at tax time?
US drivers report this income on their federal return, and depending on the state, potentially a state return too. Because you're expected to report the income yourself, keep your own record of what Lunar paid you over the year. 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 report this income on their T1 personal tax return, using their own record of what Lunar paid them over the year. As with the US, the absence of paperwork from a payer 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 Lunar paid out to you over the year, so keep your own record of each payout.
- Lunar pays drivers monthly, up to $500 a month
- Earnings come from multiple stickers (up to 4 spots per car)
- Payouts are monthly, via Stripe Connect
- You are responsible for your own taxes in both the US and Canada
- Keep your own record of every payout
- Joining Lunar is free — no fees or deposits to account for
None of this is tax advice — it's a plain-English map of 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: save a record of each monthly payout and bring it 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, and you're responsible for your own taxes, so keep your own record of every payout.
What should I keep for tax time?
Keep your own record of every payout. You're expected to report the income on your return, and a tax professional can tell you how to use those records for your situation.
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 Lunar paid you over the year.
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