A brand new report suggests almost one in 4 Canadians now earn cash this manner. Many nonetheless aren’t positive when their further revenue turns into a enterprise with registration and tax obligations. The findings come from Ownr’s 2026 Canadian Aspect Hustle Report, launched October 8. Ownr is a web based registration and incorporation platform owned by RBCx, a division of the Royal Financial institution of Canada. It sells companies to folks beginning companies.
The survey of 1,501 Canadian adults was carried out by Ipsos in early September.
Why are Canadians beginning facet hustles?
In response to the report, 23% of Canadians presently earn revenue from a facet hustle, and 24% need to begin one.
Cash is the principle motive. Canadian facet hustlers had been principally involved with topping up common revenue, the rising value of residing, and debt.
Gen Z cited the price of residing as their motivation, together with turning a pastime into revenue. Millennials had been extra involved about paying down debt. Gen X and boomers principally wished to complement their revenue.
RBC’s 2026 Small Enterprise Ballot, printed in September, discovered that almost half of Gen Z enterprise homeowners are operating a facet hustle alongside a full-time job.
About 43% of facet hustlers think about their facet gig an actual enterprise, and that rises to 55% amongst Gen Z facet hustlers. Some are considering greater: 19% mentioned they’re prone to depart their job and go full-time, and 22% mentioned their facet hustle already earns sufficient that they don’t want a daily job.
Earlier than going full-time, most facet hustlers need to show it could actually pay the payments. They mentioned they’d must earn greater than their day job or change into constantly worthwhile. Components like advantages and retirement financial savings can affect your choice
Aspect hustles roadblocks
Aspect hustlers spend a median of 13 hours per week on their ventures, and a smaller portion (14%) spends almost 20.
Discovering prospects is the largest problem, adopted by discovering the time round one other job and life.
About 37% don’t know when they should register their enterprise, 38% don’t perceive the authorized necessities that apply to them, and 42% aren’t positive whether or not incorporation is true for them. Ladies had been much less possible than males to say they know when to register or perceive their tax obligations.
Aspect gigs and the CRA
The tax guidelines are the half many individuals skip. The Canada Income Company (CRA) says residents should report all self-employment revenue, together with gig and platform work.
Learn our guides on audit-proofing your facet hustle and making a monetary plan as a freelancer.
You may additionally owe Canada Pension Plan contributions, and self-employed staff pay each the worker and employer shares.
Since there’s technically no employer withholding something, it’s good to put aside a part of what you earn for taxes. Platform sellers must also know the CRA can cross-check what you report, as we clarify in our have a look at revenue from digital platforms.
GST/HST is the opposite threshold to observe. Generally, you need to register as soon as your taxable gross sales go $30,000 over 4 calendar quarters, although some work, corresponding to business ridesharing, has totally different guidelines.
