# Side Hustle Income and the CRA: What to Report (2026) > How the CRA taxes side hustle income in Canada: what to report, how much tax to set aside, CPP on self-employment, GST/HST and deductible expenses. Source: https://trykosh.com/learn/side-hustle-income-cra Guide - Income tax # Side hustle income and the CRA: how it's taxed Freelancing after hours, reselling, tutoring, content creation or delivery shifts: if you earn it, the CRA expects it on your return, slip or no slip. Here's how side income is taxed on top of a salary and how to avoid an April bill. Updated October 31, 20263 min readBy the Kosh team On this page[Do I have to report side hustle income?](#report)[How much tax will I pay on it?](#how-much)[What expenses can I deduct?](#deduct)[Do I need to charge GST/HST?](#gst)[How to avoid a surprise bill in April](#avoid-bill)[Rental, reselling and creator income](#types)[FAQs](#faq) ## Do I have to report side hustle income? Yes. Income is taxable whether or not you get a T4A or other slip, including cash, e-transfers and payouts from apps and platforms. Selling a few of your own used belongings isn't a business; buying things to resell, or doing paid work regularly to make money, is. ## How much tax will I pay on it? Side income sits on top of your salary, so it's taxed at your marginal rate. In Ontario, $15,000 of net side income on top of an $85,000 salary adds about $4,473 of income tax (Kosh estimate). Because that salary is already above the CPP maximum earnings, no extra CPP is due. At lower salaries, CPP applies too. With a $45,000 Ontario salary, $10,000 of side income adds about $1,851 of income tax plus about $1,190 of CPP, because self-employed CPP is 11.9% (both halves) on earnings up to $74,600. ## What expenses can I deduct? If it's a business, you report gross income and subtract reasonable expenses on Form T2125: supplies, software, platform fees, a share of your phone and internet, equipment, and a home-office share if it qualifies. Only the business-use portion counts. Keep receipts and a separate account for side income so you can show which payments are which. ## Do I need to charge GST/HST? Most side hustles stay under the $30,000 small supplier threshold and don't need to register. Count taxable revenue from all your businesses together, in a single quarter and over four consecutive calendar quarters. Ride-share and taxi drivers are the exception: they must register from the first ride. ## How to avoid a surprise bill in April 1. Move a share of each payment (your marginal rate, plus CPP if your salary is below the CPP maximum) to a separate savings account. 2. Or ask your employer to withhold extra tax from your salary through your TD1 form, which spreads the cost across the year. 3. Watch for instalment reminders: if your balance owing tops $3,000 in two years out of three, the CRA will ask for quarterly payments. 4. Use an RRSP contribution to offset the extra income if you have room. ## Rental, reselling and creator income - **Renting out a room or a property**: rental income, reported on Form T776, with its own rules for expenses. - **Reselling for profit**: business income if you buy to resell regularly. - **Creator income** (ads, sponsorships, affiliate payments): business income. - **Gig apps** (delivery, ride-share, odd jobs): self-employment income. See [self-employed taxes](/learn/self-employed-taxes-canada). [Free tool**Income tax calculator**Work out your 2026 federal and provincial income tax, CPP and EI, and what you keep, in any province or territory. Add self-employment income, capital gains and RRSP contributions to see how each one changes the bill.](/tools/income-tax-calculator)[Free tool**Marginal tax rate calculator**See how much of your next dollar goes to tax in your province, on salary and interest, capital gains and dividends. It's the number that decides what an RRSP contribution saves and what a raise is worth.](/tools/marginal-tax-rate-calculator) **Where Kosh fits** Kosh spots side-income deposits in your bank statements, keeps a running estimate of the tax and CPP they add, and tells you how much to set aside each month, so the extra income stays extra. ## Frequently asked questions Do I have to report side hustle income to the CRA? Yes. All income is taxable even if you don't get a slip. Report business income and expenses on Form T2125 with your personal return. How much tax do I pay on side income in Canada? It's taxed at your marginal rate on top of your salary, plus self-employed CPP if your total earnings are below the CPP maximum. Your marginal rate depends on your province and total income. Is there a tax-free amount for side income? No separate one. The basic personal amount applies to your total income, and if your salary already uses it, side income is taxed from the first dollar. Do I need to charge GST/HST on my side hustle? Only once your taxable revenue is more than $30,000 in a calendar quarter or over four consecutive quarters, or from the start if you drive for a ride-share or taxi service. How do I avoid owing tax on side income in April? Set aside a share of every payment, or have your employer withhold extra tax from your salary through your TD1, and consider an RRSP contribution to offset the extra income. ## Sources - [CRA: RC4022, General Information for GST/HST Registrants](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4022/general-information-gst-hst-registrants.html) - [CRA: Register for a GST/HST account](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/account-register.html) - [CRA: Paying your income tax by instalments](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/making-payments-individuals/paying-your-income-tax-instalments.html) - [CRA: T4127 Payroll Deductions Formulas](https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4127-payroll-deductions-formulas.html) Written by the Kosh team and checked against the rules in force on October 31, 2026. This guide is general information, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not registered with any Canadian securities regulator as an adviser or dealer, does not recommend specific securities, and does not hold your money or execute trades. Tax figures are estimates; confirm with the CRA or a qualified professional before acting. Investing carries risk. ## Upload your statement and Kosh does this for you. Kosh reads your bank, card and investment statements, estimates your federal and provincial tax and turns guides like this one into your own numbers and next steps. [Start free](/signup?via=learn-side-hustle-income-cra)