Rising side hustles challenge tax compliance while traditional benefits still anchor workers
Nearly half of young Canadian gig workers say they would risk not declaring any of their gig income to the Canada Revenue Agency (CRA), even as platforms like Etsy and Airbnb now report those earnings directly to the tax authority.
A 2026 survey commissioned by H&R Block Canada found that nearly one in five Canadians (17 percent) worked in the gig economy in 2025, representing nearly 6 million adults.
More than a quarter (26 percent) of Canadians aged 18–34 reported doing gig work in the past year, and 51 percent of gig workers said they started working in the gig economy or took on a side hustle in the last year because of rising inflation cost pressures.
The survey shows a sizable gap between income earned and income reported.
More than a third of gig workers (36 percent) said they did not declare all their income last year when filing taxes, and 29 percent said they do not plan on reporting all of their gig income this tax season.
Overall, 33 percent of gig workers said they would be willing to take the risk of not declaring any gig-related income to the CRA, rising to 41 percent among gig workers aged 18–34.
This is occurring after new reporting requirements for gig and digital marketplace platforms.
In 2024, the federal government implemented legislation requiring digital gig platforms like Etsy and Airbnb to report users’ income to the CRA, which allows the CRA to cross reference those figures with what individual taxpayers report.
H&R Block Canada tax expert Yannick Lemay warned that “many Canadians are taking a big risk by not declaring all their gig-related income,” exposing themselves to “significant penalties” if the CRA audits them.
He said 2024 legislation now requires digital gig platforms such as Etsy and Airbnb to report users’ income so the CRA can cross-check those amounts against individual tax returns.
Websites such as SkipTheDishes, DoorDash, Airbnb, Etsy and Uber are required to report the income of their users to the CRA.
These digital platforms provide users with the information they share with the CRA, and workers are expected to ensure that what the platform reports matches what they have declared.
The findings sit against a broader shift away from the standard job model.
The survey reported that 70 percent of Canadians think the era of a standard 9-to-5 job culture is disappearing.
Nearly a third (31 percent) said they cannot imagine being in the same job for more than 10 years, and nearly half (46 percent) of young Canadians said they grapple with that idea.
Despite this shift, Canadians still place importance on workplace benefits.
Overall, 90 percent said that getting benefits such as Registered Retirement Savings Plan (RRSP) matching programs, employer pension plans, healthcare and dental insurance is a key attraction of being an employee versus being self-employed, a contractor or a gig worker.
The research also points to early-career and labour market pressures.
It found that 82 percent of Canadians feel it is harder than ever before to get a job for those starting out their career.
As cost-of-living pressures and career challenges push people toward gig work, 75 percent said Canadians have become more entrepreneurial by taking on side hustles or gig work, including contract or freelance roles and work through online digital marketplace platforms such as Uber, Etsy, DoorDash and TaskRabbit.
Most gig workers are not hiding this activity at work: 61 percent said their primary employer is aware of their side hustle.
Tax understanding has not kept pace.
More than 1 in 4 (26 percent) gig workers said they do not feel they have a clear understanding of the tax implications of having a side hustle or gig economy job.
Lemay explained that, in the CRA’s view, gig workers are self-employed and can often claim a broad range of business expenses.
Those expenses must be documented, reasonable and clearly needed for the gig, not for personal use, to pass what he called the “CRA stress test.”
He said filing taxes on time and accurately is the simplest way to avoid missing out on “what you’re entitled to.”
The survey highlighted several tax obligations for gig workers:
Gig workers need to put money aside for taxes because, unlike traditional employment, tax is not taken off automatically from gig earnings. When it is time to file, they must ensure all taxes owed are paid.
Those who work through gig platforms may receive a T4A. If they do not, they must track and report earnings and expenses themselves.
All gig-related income, and any expenses incurred to earn that business income, should be reflected on Form T2125 Statement of Business or Professional Activities.
Once cumulative earnings exceed $30,000 over the past four consecutive calendar quarters, workers are generally required to register for a GST/HST/QST number to begin collecting and remitting taxes to the CRA. Rideshare drivers must do this before they start earning.
Self-employed workers must contribute 11.9 percent of their net business income exceeding $3,500 to the Canada Pension Plan (CPP), up to a total maximum of $8,068.20.
To contribute more than the required amount to CPP, Canadians must fill out Form CPT20 Election to Pay Canada Pension Plan Contributions, and consider this alongside other options such as the RRSP or the TFSA.
To contribute to Employment Insurance (EI), Canadians must first register with the Canada Employment Insurance Commission (CEIC).
They must pay EI premiums for at least 12 months and earn a minimum of $9,254 in net self-employed income to qualify for benefits such as maternity and sickness benefits.
EI will not cover job losses for those who are self-employed.
The deadline for filing gig or self-employed taxes is June 15, but anyone who owes money to the CRA must pay by April 30, 2026 to avoid interest.
Penalties compound over years, and if someone has incurred a penalty in the past three years, penalties will double this year.
