Are you earning money through Airbnb, Uber, Etsy, or other side gigs in Canada? If yes, the Canada Revenue Agency (CRA) expects you to report and pay taxes on that income. This guide explains how to stay tax-compliant while maximizing your allowable deductions.
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💼 What Is Considered Side Gig Income?
Side gig income, also known as self-employment income, refers to money earned outside of traditional employment. If you earn money through:
- Airbnb hosting
- Driving for Uber, Lyft, DoorDash
- Selling goods on Etsy, eBay, Facebook Marketplace
- Freelance services on Fiverr, Upwork
— then you must report this income to the CRA as part of your personal tax return.
🧾 Where Do You Report Side Gig Income?
Side gig earnings are reported on the CRA Form T2125 – Statement of Business or Professional Activities. This form accompanies your T1 General income tax return and allows you to declare:
- Total revenue earned
- Eligible business expenses
- Net self-employment income
📌 Do You Need to Register for GST/HST?
If your total revenues from self-employment (including your side gigs) exceed $30,000 over four consecutive calendar quarters, you are required to register for a GST/HST number and start charging tax on applicable sales or services.
💡 Common Deductions for Gig Workers
To reduce your tax bill, be sure to claim eligible expenses. Here are some common ones by gig type:
Airbnb Hosts
- Pro-rated rent or mortgage interest
- Utilities and internet
- Maintenance, repairs, cleaning
- Property taxes and insurance
Uber / Rideshare Drivers
- Gas, insurance, repairs, and vehicle lease
- Depreciation (capital cost allowance)
- Cell phone usage for work
Etsy / Online Sellers
- Material and shipping costs
- Advertising fees
- Marketplace fees and commissions
- Packaging and software
🧮 Do You Pay CPP on Side Gig Income?
Yes. Since you’re considered self-employed, you must pay both the employer and employee portions of CPP (Canada Pension Plan) contributions on your net business income. This will be calculated and added automatically when you file your return.
📆 When Are Taxes Due?
For individuals with self-employment income, the filing deadline is June 15, 2025, but any balance owing is due by April 30, 2025.
To avoid interest and late payment penalties, ensure you pay on time even if you file later.
📍 Best Practices for Side Gig Tax Filing
- Keep detailed records of all income and receipts
- Track mileage, invoices, and bank deposits
- Use accounting software or spreadsheets
- Set aside 25–30% of your earnings for taxes
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📘 Helpful CRA Resources
Disclaimer: The content above is intended for informational purposes only and does not constitute tax or legal advice. For personalized guidance, consult a qualified Canadian tax professional.
