To track which side hustles actually pay in Canada, record income, expenses and hours for each hustle separately, then compare profit per hour once a month. A single spreadsheet with one row per transaction and a “hustle” column is enough. The tracking also does double duty: the CRA asks for a separate Form T2125 for each business or professional activity if you have two or more (CRA), so splitting your numbers by hustle now saves sorting them at tax time.
This guide is the measuring tool behind several decisions: when to quit a gig app, whether to raise your rates and whether to add a second service. For the records themselves, see record-keeping for side hustles and free and cheap bookkeeping tools.
| Column | Example entry | Why |
|---|---|---|
| Date | 2026-11-14 | Matches bank statement |
| Hustle | Snow removal | The split that matters |
| Type | Income / expense / hours | Keeps one sheet |
| Amount or hours | $60 or 1.5 h | The number |
| Category | Fuel, supplies, fees | Maps to T2125 expense lines |
| Receipt or invoice | File name or link | CRA support for the entry |
Why track each Canadian side hustle separately?
Because combined totals hide the weak one. A busy delivery week and a slow Etsy month can average out to “fine” while one of them loses money per hour. Separate tracking shows which hustle deserves more of your time.
It’s also how the CRA expects the return to look. If you run two or more distinct business activities, each gets its own T2125 (CRA). Shared costs, such as a phone used for both, are split on a reasonable basis.
How do you set up side hustle tracking in Canada?
Set it up in one sitting and update it weekly.
Step 1: Create one sheet with a hustle column
Use the columns in the table above. Free spreadsheet tools are enough; you can move to accounting software later.
Step 2: Run business money through one account
A separate account means your bank statement becomes most of your income and expense list. See separating business and personal money.
Step 3: Log hours as you go
A notes app or calendar entry per session is enough. Include travel, quoting and messaging time.
Step 4: Keep vehicle use per hustle
The CRA asks for a logbook of business kilometres to support vehicle expenses (CRA). Note which hustle each trip was for. See the CRA mileage log guide.
Step 5: Review monthly
Total each hustle’s income, expenses and hours, and calculate profit per hour.
Illustrative example
This is a teaching sketch with assumed numbers. Someone runs three hustles in November:
| Hustle | Income | Expenses | Hours | Profit per hour |
|---|---|---|---|---|
| Food delivery | $600 | $180 (fuel, phone) | 35 | $12.00 |
| Dog walking | $480 | $20 (bags, treats) | 20 | $23.00 |
| Etsy printables | $90 | $25 (fees) | 6 | $10.83 |
Delivery brings in the most money, but dog walking pays the most per hour. Printables are low per hour this month, but listings keep selling without new hours, so they review that one over a longer period. The obvious move is to shift a few delivery hours to dog walking if there’s demand.
What should you do with the numbers each month?
Use them to make one decision at a time.
- Cut or reduce the lowest earner per hour if it stays lowest for several months. When to quit a gig app walks through this for app work.
- Raise prices on the hustle with a waitlist. See building a waitlist.
- Watch the combined GST/HST total. The $30,000 small supplier test adds up all your businesses; see GST/HST registration.
- Feed the year-end review. Twelve monthly totals make the first-year price review quick.
What mistakes do people make tracking side hustle income?
- Tracking income but not hours. Profit per hour needs both.
- Tracking only gross. Expenses change the ranking.
- Mixing personal and business purchases.
- No receipts. The CRA expects documents that support each entry (CRA).
- Judging long-tail products by one month. Digital products and listings can earn after the work is done.
How does tracking each side hustle help with taxes in Canada?
Each business’s totals go straight onto its own T2125, and your expense categories already match the form’s lines. The CRA generally requires records to be kept for six years from the end of the last tax year they relate to (CRA). Accounting software such as FreshBooks can tag transactions by project or client to produce the per-hustle split. For year-end, see side hustle tax prep before January and how much tax to set aside.
This is not tax, legal, or insurance advice.
Which guides sit next to tracking which side hustles pay?
Side hustle expense deductions explains what can go in the expense column, vehicle expenses for delivery and rideshare covers the biggest cost for app work, and casual side income vs a sole proprietorship explains why each of these hustles is already a business. When one hustle clearly wins, hiring help covers the next step. Review the numbers on a cadence with the quarterly money check-in and rebuild prices with the side hustle pricing worksheet.
What are the common questions?
What's the best way to compare side hustles?
Profit per hour: income minus expenses, divided by all the hours spent, including travel and admin. Gross income alone favours hustles with high costs.
Do I need a separate T2125 for each side hustle?
The CRA asks for a separate Form T2125 for each business or professional activity if you have two or more. Tracking each hustle separately makes that easy.
How long do I keep side hustle records?
The CRA generally requires records and supporting documents to be kept for six years from the end of the last tax year they relate to.
Do I need accounting software to track side hustles?
No. A spreadsheet with a hustle column, plus a separate bank account and saved receipts, is enough for most small side hustles. Software can save time as you grow.
How do I split costs shared between two hustles?
Use a reasonable, consistent basis, such as kilometres driven for each hustle or hours of use, and keep notes on how you split it.
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
- Business records — Canada Revenue Agency
- Where to keep your records, how long to keep them — Canada Revenue Agency
- Motor vehicle records — Canada Revenue Agency