A first-year price review for a Canadian side hustle means looking back at twelve months of actual income, expenses and hours, working out what you really earned per hour after costs and tax, and setting next year’s price from that rather than from a guess. The CRA’s Form T2125 already sorts your year into income and expense lines (CRA), so the same numbers you need for your return are the numbers you need for this review.
This is the numbers side. For how to tell clients about a change, see how to raise your side hustle rates. For setting a price from scratch, start with your hustle’s pricing guide, such as snow removal pricing, graphic design pricing or online tutoring pricing.
| Review item | Source | What it tells you |
|---|---|---|
| Gross income | Invoices, platform statements, bank deposits | What clients paid |
| Expenses by category | Receipts sorted by T2125 line | What the work cost |
| Hours worked | Calendar or time log | Including travel, quoting and admin |
| Net per hour | Income minus expenses, divided by hours | Your real rate before tax |
| Demand signals | Waitlist, enquiries, lost quotes | Whether the market will pay more |
| Cost changes | Your receipts; Statistics Canada CPI for context | Whether your old price now buys less |
What numbers do you need for a first-year side hustle review in Canada?
Gather them once and keep them for your tax return. The CRA generally requires you to keep records for six years from the end of the last tax year they relate to (CRA), so nothing here is extra paperwork.
Step 1: Total your income
Add every client payment and platform payout for the year. Record-keeping for side hustles explains what to keep.
Step 2: Sort expenses by category
Supplies, advertising, fees, phone, vehicle and insurance. Side hustle expense deductions lists the common ones.
Step 3: Count every hour
Billable time plus travel, quoting, messaging and bookkeeping. Unbilled hours are how a price that looked fine on paper ends up paying less.
Step 4: Split by service
If you offer two services, review each one. Tracking which side hustles pay shows a simple per-service sheet.
How do you work out your real hourly rate after tax and CPP in Canada?
Start with net per hour, then estimate what’s left after tax and CPP.
Self-employed people pay both halves of CPP. In 2026 that’s 5.95% each on pensionable earnings between $3,500 and $74,600 (CRA). If you also have a job, those contributions share the same exemption and maximum. Income tax depends on your total income and province; how much tax to set aside explains how to choose a percentage.
Illustrative example
This is a teaching sketch with assumed numbers. A dog walker earned $9,000 in their first year and spent $1,200 on a leash set, treats, insurance and transit. They logged 450 hours, including travel between homes and messaging clients. Net is $7,800, or $17.33 per hour before tax. Self-employed CPP at 11.9% of the part of $7,800 above $3,500 is about $512, if this is their only work. They’ve chosen to set aside 15% for income tax, about $1,170. That leaves about $6,118, or $13.60 per hour. They have a five-person waitlist. Those two facts together make a case for a higher price or shorter routes.
How do you decide whether to raise, hold or change the offer?
Combine the number with what clients did.
Step 1: Look for raise signals
A waitlist, most quotes accepted, clients rebooking without asking about price. See building a side hustle waitlist.
Step 2: Look for offer problems
If you’re not full and people object to price, a raise may not work. Try a package, a minimum booking, a tighter service area or a second service instead.
Step 3: Set one new number per service
Write down the new price, the date it starts and who it applies to.
Step 4: Check the GST/HST threshold
Once your total taxable sales from all businesses pass $30,000 in four consecutive calendar quarters, you must register and charge GST/HST (CRA). If a raise gets you close, read GST/HST registration for side hustles before you set the number.
What mistakes do people make in a first-year price review?
- Using gross income as the result. Expenses and unbilled hours change the picture.
- Forgetting CPP. It’s a real cost of self-employment.
- Raising when you’re half-booked. Fix the offer or the marketing first.
- Reviewing only once and never again. A short yearly review keeps changes small.
- Copying a competitor’s price without knowing their costs or hours.
How does a price review connect to your side hustle taxes in Canada?
The review uses the same totals as your T2125, so doing it in December or January gives you a head start on filing. If your net income jumped, check whether you’ll owe tax instalments. Accounting software such as FreshBooks produces a profit and loss report that makes this review faster. For a year-end checklist, see side hustle tax prep before January.
This is not tax, legal, or insurance advice.
Which guides sit next to the first-year price review?
Casual side income vs a sole proprietorship explains what switches on as you grow, when to quit a gig app applies the same hourly test to app work, and hiring help covers what to do when the review says demand is bigger than you are. For pricing by hustle, see house cleaning pricing and social media manager pricing. After the review, rebuild quotes with the side hustle pricing worksheet and the house cleaning quote walkthrough.
What are the common questions?
When should I review my side hustle prices?
Once a year is a simple rhythm, and the end of the calendar year lines up with gathering your T2125 numbers. Seasonal hustles often review just before the season starts.
How do I calculate my real hourly rate?
Take your income, subtract business expenses, and divide by all the hours you spent, including travel, quoting and admin. Then estimate income tax and self-employed CPP to see what you keep.
How much CPP do self-employed people pay?
In 2026 self-employed people pay both the employee and employer portions, 5.95% each, on pensionable earnings between $3,500 and $74,600. Contributions from a job share the same exemption and maximum.
Should I raise prices if I'm not fully booked?
Usually fix the offer first. If people object to price and your calendar has gaps, try packages, minimums, a tighter service area or a complementary service before raising.
Will raising my prices make me register for GST/HST?
It can. Once total taxable sales from all your businesses pass $30,000 in four consecutive calendar quarters, you must register and charge GST/HST.
Which sources support this guide?
The rules, rates, and platform requirements in this guide are checked against these primary sources. Retail price ranges are labelled as ranges to verify locally, and they are not quotes.
- Completing Form T2125 — Canada Revenue Agency
- CPP contribution rates, maximums and exemptions — Canada Revenue Agency
- When to register for and start charging the GST/HST — Canada Revenue Agency
- Consumer Price Index portal — Statistics Canada
- Where to keep your records, how long to keep them — Canada Revenue Agency