The best time to prepare a Canadian side hustle’s taxes is October to December, before the calendar year closes. Five jobs matter most. Gather missing receipts while sellers still remember you, because the CRA says expense receipts should show the date, seller, buyer, description, and the vendor’s GST/HST number on purchases of $100 or more. Sort income and expenses into Form T2125 categories. Check whether you crossed the $30,000 GST/HST small-supplier threshold. Pay the December 15 instalment if you are required to make instalments. And set aside money for the April 30 payment deadline. In January, platforms that report to the CRA must send you a copy of what they reported by January 31.
The detailed rules live in the site’s tax guides: how to report side hustle income to the CRA, record keeping, GST/HST registration, how much tax to set aside, and side hustle expense deductions. This page is the fall checklist that ties them together.
What should Canadian side hustlers do for taxes before January?
Before January, close the gaps in your records, check your GST/HST and instalment status, and estimate what you will owe. The checklist below is ordered by deadline.
| When | Task | Why |
|---|---|---|
| October | Download year-to-date income reports from every platform and bank | Platform totals and deposits should match your records |
| October | Chase missing receipts and fill in your mileage log | Receipts are hard to replace later |
| November | Sort expenses into T2125 categories | Makes filing faster and shows what is missing |
| November | Run the GST/HST four-quarter test | Crossing $30,000 means registering and charging tax |
| By December 15 | Pay the final instalment, if you are required to | December 15 is an instalment due date |
| December | Estimate 2026 tax owing and top up your tax savings | The balance is due April 30 |
| By January 31 | Collect platform copies of reported information | Platforms send sellers a copy by January 31 |
Which records does the CRA expect from a side hustle?
The CRA says you are required by law to keep records of all your transactions to support income and expense claims. Its business records page says income records must include the date, amount, and source, backed by documents such as invoices, receipts, deposit slips, and fee statements. Expense receipts should show the purchase date, the seller’s name and address, the buyer’s name and address, a full description, and the vendor’s business number if they are a GST/HST registrant and the purchase is $100 or more before tax. Keep records for at least six years, per the CRA’s record-keeping guidance. The folder system is in record keeping for side hustles.
How do you get ready for Form T2125?
Self-employment income and expenses go on Form T2125, Statement of Business or Professional Activities, so sort your year into its structure before January: gross income, then expenses such as advertising, supplies, fees, phone and internet, vehicle, and business-use-of-home. Run one T2125 per business activity if you have more than one. The filled-in walkthrough is in how to report side hustle income, home costs are in home office expenses, and car costs are in vehicle expenses for delivery and rideshare.
Do you need to register for GST/HST before year-end?
Check now, because the test runs on calendar quarters. The CRA’s registration page says you are a small supplier if your taxable sales do not exceed $30,000 over four consecutive calendar quarters. If you exceed $30,000 in a single quarter, you must charge GST/HST on the sale that pushed you over. If you cross it over four quarters but not in one, you stop being a small supplier at the end of the month after that quarter. Rideshare drivers follow a different rule and register from their first fare. The worked test is in GST/HST registration for side hustlers.
Do side hustlers have to pay tax instalments in December?
Only if the CRA’s thresholds apply. The CRA says you have to pay instalments for 2026 if your net tax owing is more than $3,000 ($1,800 in Quebec) in 2026 and was also more than that in either 2025 or 2024. For most individuals, the due dates are March 15, June 15, September 15, and December 15. The CRA sends reminders in February and August to people likely to owe instalments. If you received a reminder but your 2026 net tax owing will be $3,000 or less ($1,800 in Quebec), the CRA says you do not have to pay instalments for 2026.
When are the 2027 tax deadlines for a side hustle?
The CRA’s filing dates page, as of October 2026, lists the rules for the 2025 return: self-employed people (other than those with mostly tax shelter expenditures) and their spouses or common-law partners file by June 15, 2026, but any balance owing is due by April 30, 2026. If the same structure carries forward, the 2026 return is due by June 15, 2027, with payment by April 30, 2027. Confirm on the CRA page once it updates for the 2026 tax year.
What should you expect from platforms in January?
Platforms covered by the CRA’s digital platform reporting rules collect seller information and report it to the CRA each year. The CRA’s information-shared page says reports include total consideration paid to the seller broken down by calendar quarter, the number of activities, and fees or commissions withheld, and that platforms will give you a copy of what they reported by January 31 each year. Compare that copy with your own records. Covered activities include selling goods, rideshare and delivery, personal services, and property rentals; more in tax on reselling and gig apps.
How much should you have set aside by December?
Enough to cover income tax and CPP on your side hustle profit for the year, which depends on your other income and province. The labelled example shows a simple tracking method, not a tax calculation.
Illustrative example
All figures below are assumptions to show the arithmetic.
- Side hustle gross income, January to September: $9,000.
- Expenses with receipts, same period: $2,000, so profit to date is $7,000.
- Assumed October to December profit: $2,500, so estimated 2026 profit is $9,500.
- Assumed set-aside rate: 25% of profit, so $9,500 × 0.25 = $2,375.
- Already saved: $1,500, so top up $875 before April 30, 2027.
Your actual rate depends on your marginal tax bracket and self-employed CPP contributions; how much tax to set aside walks through it.
What tax mistakes do side hustlers make before year-end?
The common mistakes are waiting until April, mixing personal and business money, and ignoring platform reports.
- Starting in April. Missing receipts are hardest to replace months later.
- No mileage log. Rebuilding a year of trips from memory is weak evidence.
- Forgetting cash or e-transfer income that no platform reports.
- Missing the GST/HST threshold because income is split across several platforms.
- Confusing the filing and payment deadlines. Self-employed people may file by June 15, but the CRA says any balance owing must be paid by April 30.
- Throwing records away early. Keep them at least six years.
Which tools help with side hustle tax prep?
Bookkeeping software and tax software can do much of the sorting. An invoicing and expense app such as FreshBooks TODO-AFFILIATE keeps receipts and income in one place, and tax software such as Wealthsimple Tax TODO-AFFILIATE can handle the return itself. Check that whatever you use supports Form T2125 and any other forms you need.
This is not tax, legal, or accounting advice.
Which guides sit next to the year-end tax checklist?
This checklist links the tax cluster. Read reporting side hustle income, record keeping, GST/HST registration, how much tax to set aside, expense deductions, and tax on reselling and gig apps. Browse more in taxes and money.
What are the common questions?
What should I do before December 31 for my side hustle taxes?
Download year-to-date platform and bank reports, collect missing receipts, update your mileage log, sort expenses into Form T2125 categories, check the $30,000 GST/HST threshold, pay any December 15 instalment you owe, and estimate your tax bill.
When is the self-employed tax deadline in Canada?
For the 2025 return, the CRA set June 15, 2026 as the filing deadline for most self-employed people, with any balance due by April 30, 2026. If the same structure carries forward, the 2026 return is due June 15, 2027, with payment by April 30, 2027. Confirm on the CRA site.
Do I have to pay tax instalments on side hustle income?
The CRA requires instalments for 2026 if your net tax owing is more than $3,000, or $1,800 in Quebec, in 2026 and in either 2025 or 2024. Due dates for most individuals are March 15, June 15, September 15, and December 15.
How long do I keep side hustle receipts in Canada?
The CRA says to keep tax records for at least six years. Its business records page says this generally runs from the end of the last tax year the records relate to.
Will gig and selling platforms report my income to the CRA?
Platforms covered by the CRA's digital platform reporting rules report seller information, including quarterly totals and fees withheld, and must give you a copy by January 31 each year. Report all income whether or not you receive a copy.
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.
- Business records — Canada Revenue Agency
- How long should you keep your income tax records? — Canada Revenue Agency
- Form T2125, Statement of Business or Professional Activities — Canada Revenue Agency
- When to register for and start charging the GST/HST — Canada Revenue Agency
- Required tax instalments for individuals: who has to pay — Canada Revenue Agency
- Required tax instalments for individuals: payment due dates — Canada Revenue Agency
- Filing due dates for the tax return — Canada Revenue Agency
- Reporting Rules for Digital Platforms: information shared — Canada Revenue Agency