Side Hustle Taxes in Canada: What You Need to Know
Quick answer
In Canada, side hustle income is reported on your personal tax return using form T2125 (Statement of Business or Professional Activities). You generally must register for GST/HST once your taxable revenue passes $30,000 over four consecutive calendar quarters. Setting aside a portion of profit for taxes avoids surprises.
Is side hustle income taxable in Canada?
Yes. Business income from a side hustle is taxable and reported alongside your employment income on your T1 return, using form T2125.
When do I need a GST/HST number?
Once you stop being a small supplier — generally when taxable revenue exceeds $30,000 over four consecutive calendar quarters. You can also register voluntarily earlier.
What expenses can I track?
Common examples include software, tools, supplies, advertising and a reasonable share of home office costs. Keep receipts and confirm eligibility with the CRA or an accountant.
How much should I save for taxes?
Many people set aside 25–30% of profit as a buffer. Your real rate depends on your total income and province — check with a tax professional.