But many gig workers not so transparent when it comes to income – despite new rules from CRA
There are 7.4 million Canadians — nearly one in four — who are part of the gig economy, with 90% using it as a side hustle for extra income.
This represents an 85% increase in the number of Canadian gig workers from just three years ago, according to a new H&R Block Canada survey.
And an additional three million Canadians (10%) are considering joining the gig workforce in the future,
According to the study, 64% of Canadians worry that 2025 is going to be a tough financial year for them, and 51% say that despite making a good salary they struggle to make ends meet for everyday expenses.
Canadians feel gig work is necessary due to financial stress. 64% worry about financial struggles in 2025, while 51% struggle with everyday expenses despite earning a good salary. Meanwhile, 45% mentioned rising costs as the reason for their side hustle.
Almost half (45%) of gig workers said they took on a side hustle to generate more income due to higher cost-of-living pressures, found H&R Block Canada.
Overall, gig-related income represents an average 24% of total income among gig workers. Gig-related income represents total income for 10% of Canadian gig workers; up to 20% of income for 69% of gig workers; 20-50% of income for 16% of gig workers, and between 50-99% for 15%.
There's a continued shift in Canadians' level of transparency in having a 'second job,' found the survey, with a majority (60%) of gig workers saying their primary employer is aware of their side hustle, compared to 49% a year ago.
“It’s important for employers not to assume, particularly in this day and age, that an employee is going to be 100% committed, loyal, and faithful to the employer’s time,” says an employment lawyer speaking to HRD about the importance of having an employer policy for side hustles.
When it comes to declaring gig-related income, more than a quarter (28%) if respondents said they didn't declare all gig income when they filed their taxes last year, and for 2024, 30% said they weren't planning to declare all-gig related income.
However, under new federal legislation, digital gig platform operators such as Uber, DoorDash, Airbnb and Etsy, are required to file an 'information return' to the CRA detailing Canadian users' details and income generated on their platform.
However, two-thirds (66%) of gig workers were not aware of these new rules, found H&R Block. When they learned about the new rules, 71% of gig workers said they were more inclined to declare their gig income.
But 36% said that, despite learning of these new rules, they are still not inclined to report all gig income.
"For the most part, gig workers are essentially classified as self-employed for tax purposes," said Yannick Lemay, Tax Expert, H&R Block Canada. "However, unlike more traditional self-employed Canadians, gig workers often receive T4A slips from their gig platforms. There are also nuances in the expenses and deductions that gig workers can claim, which are specific to the type of gig work they do."
