The Tax Implications of Side Hustles and Gig Work in Canada

April 15, 2025
The Tax Implications of Side Hustles and Gig Work in Canada

Introduction

With the rise of freelancing, gig work, and side hustles, many Canadians are earning additional income beyond traditional employment. However, gig workers must report earnings and pay taxes just like regular employees.

 

This article explores how side hustle income is taxed in Canada and what deductions can help minimize tax liability.

 

1. How Is Gig Work Taxed?

  • Income from freelancing, Uber driving, or online businesses is considered self-employment income.
  • Self-employed individuals must report all income and pay taxes on net earnings.
  • Unlike employees, gig workers must remit their own CPP contributions.

 

2. What Deductions Are Available for Side Hustlers?

  • Home office expenses
  • Business-related supplies, software, and subscriptions
  • Vehicle expenses for work purposes

 

Conclusion

Gig work is taxable, but proper deductions can reduce tax burdens. Self-employed Canadians should keep accurate records and plan ahead for tax payments. 

 

Tax Partners can assist gig workers with tax compliance and optimizing deductions.

 

This article is written for educational purposes.

 

Should you have any inquiries, please do not hesitate to contact us at (905) 836-8755, via email at [email protected], or by visiting our website at www.taxpartners.ca.

 

Tax Partners has been operational since 1981 and is recognized as one of the leading tax and accounting firms in North America. Contact us today for a FREE initial consultation appointment.

 

Back to Articles