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    TaxKilnCanadian tax guidance

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    Start here: I have a side hustle alongside a job

    Side income is still self-employment income -- it goes on Form T2125 on top of your T4 employment. Your day-job withholding does not cover it, so plan for the extra tax.

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    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact CRA. Read our editorial scope →

    1. 1

      Report the side income

      Gig, freelance, and platform income is taxable self-employment income reported on T2125, even if it is small and paid in cash or to an app. There is no minimum threshold for reporting.

      Gig economy tax guide →
    2. 2

      If you sell online

      Marketplace and platform sales have their own reporting wrinkles, and platforms increasingly report your gross sales to the CRA. Reconcile what they report against your actual profit.

      Online sellers guide →
    3. 3

      Deduct expenses against the side income

      You can deduct the costs of earning the side income (supplies, fees, a portion of phone/internet) -- but only the business-use portion, and you need records.

      Business expenses guide →
    4. 4

      Watch the GST/HST line

      The $30,000 registration threshold counts ALL your self-employment revenue, not just one stream. A growing side hustle can cross it without you noticing.

      GST/HST guide →
    5. 5

      Plan for instalments

      Because your employer does not withhold on side income, you can end up owing more than $3,000 and being moved onto quarterly instalments the next year.

      Instalments guide →

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