💻 Tax Rules for Side Hustles & Gig Economy Workers in Canada (2025)
The gig economy in Canada is growing fast. More people than ever are driving for Uber and Lyft, renting their cars on Turo, delivering food with DoorDash and SkipTheDishes, hosting on Airbnb, or freelancing online. Side hustles are a great way to earn extra income — but the Canada Revenue Agency (CRA) wants its share.
At Unity Financial Services, we specialize in helping individuals and small business owners navigate personal tax filing, self-employment income reporting, and bookkeeping for side hustles. Here’s what you need to know about tax rules for gig workers in 2025.
🚦 Do You Need to Report Side Hustle Income?
Yes ✅. Whether you earn a few hundred dollars or thousands, all income must be reported on your personal tax return.
- 🚗 Rideshare drivers (Uber, Lyft, Turo) → taxable as self-employment or rental income.
- 🏠 Airbnb hosts → rental income must be declared.
- 💻 Freelancers (graphic design, tutoring, IT services) → taxable as business income.
👉 CRA receives data directly from gig platforms, so undeclared income is easily detected.
📑 How to Report Side Hustle Income
Gig economy income is usually reported as self-employment income using the T2125 (Statement of Business or Professional Activities). You must:
- Record all income (bank deposits, cash, e-transfers, platform payouts).
- Track eligible expenses (see below).
- Report net income (income – expenses) on your tax return.
Need help? Our team provides bookkeeping services to keep your records organized all year.
💡 What Expenses Can You Deduct?
The best part of being a gig worker is that you can deduct expenses to lower your taxable income.
- Uber, Lyft, Turo drivers → fuel, insurance, repairs, maintenance, parking, car washes, phone portion, lease or loan interest.
- Airbnb hosts → percentage of rent/mortgage, utilities, cleaning fees, internet, supplies, furniture.
- Freelancers → home office expenses, internet, software subscriptions, advertising, professional fees.
👉 Unity Financial Services helps you identify every deduction so you don’t overpay tax. Learn more in our corporate & self-employed tax filing section.
🧾 GST/HST/QST Obligations
If your gig income exceeds $30,000 in 12 months, you must register for GST/HST (and QST in Québec).
- Uber/Lyft drivers → required to register from the first dollar.
- Airbnb hosts → depending on province, GST/HST is often collected and remitted automatically by the platform.
- Freelancers & consultants → must charge GST/HST once they pass the $30,000 threshold.
👉 Not sure if you need to register? Our payroll & tax services can handle GST/HST/QST registration and filing for you.
⚠️ CRA Is Watching
The CRA now has agreements with platforms like Uber, Airbnb, and Turo to share income data. That means if you don’t report your side hustle income, CRA will know. Failure to comply could result in penalties, back taxes, and interest charges.
✅ How Unity Financial Services Can Help
We understand gig workers and side hustlers because we work with them every day. Our services include:
- Personal tax filing – make sure your side hustle income is reported correctly.
- Bookkeeping – track your gig expenses so you maximize deductions.
- Payroll services – for freelancers who hire subcontractors or expand.
- Corporate tax services – if your side hustle grows into a business.
📞 Get Expert Help for Gig Worker Taxes
Don’t let your side hustle turn into a tax problem. At Unity Financial Services, we’ll help you report correctly, maximize deductions, and stay compliant with CRA — while keeping more money in your pocket.
📱 Call us today at 438-701-3770
🌐 Visit: unityfs.ca
Because side hustles should bring freedom, not tax stress. 💼🚗💻