New report on side hustles shows nearly half of Canada wants in
Side hustles are a huge part of how people in Canada make ends meet, especially given the state of affordability.
A new report suggests nearly one in four Canadians now earn money this way. Many still aren’t sure when their extra income becomes a business with registration and tax obligations. The findings come from Ownr’s 2026 Canadian Side Hustle Report, released October 8. Ownr is an online registration and incorporation platform owned by RBCx, a division of the Royal Bank of Canada. It sells services to people starting businesses.
The survey of 1,501 Canadian adults was conducted by Ipsos in early September.
Why are Canadians starting side hustles?
According to the report, 23% of Canadians currently earn income from a side hustle, and 24% want to start one.
Money is the main reason. Canadian side hustlers were mostly concerned with topping up regular income, the rising cost of living, and debt.
Gen Z cited the cost of living as their motivation, along with turning a pastime into income. Millennials were more concerned about paying down debt. Gen X and boomers mostly wanted to supplement their income.
RBC’s 2026 Small Business Poll, published in September, found that nearly half of Gen Z business owners are running a side hustle alongside a full-time job.
About 43% of side hustlers consider their side gig a real business, and that rises to 55% among Gen Z side hustlers. Some are thinking bigger: 19% said they’re likely to leave their job and go full-time, and 22% said their side hustle already earns enough that they don’t need a regular job.
Before going full-time, most side hustlers want to prove it can pay the bills. They said they’d need to earn more than their day job or become consistently profitable. Factors like benefits and retirement savings can influence your decision
Side hustles roadblocks
Side hustlers spend an average of 13 hours a week on their ventures, and a smaller portion (14%) spends nearly 20.
Finding customers is the biggest challenge, followed by finding the time around another job and life.
About 37% don’t know when they need to register their business, 38% don’t understand the legal requirements that apply to them, and 42% aren’t sure whether incorporation is right for them. Women were less likely than men to say they know when to register or understand their tax obligations.
Side gigs and the CRA
The tax rules are the part many people skip. The Canada Revenue Agency (CRA) says residents must report all self-employment income, including gig and platform work.
Read our guides on audit-proofing your side hustle and creating a financial plan as a freelancer.
You may also owe Canada Pension Plan contributions, and self-employed workers pay both the employee and employer shares.
Since there’s technically no employer withholding anything, it’s smart to set aside part of what you earn for taxes. Platform sellers should also know the CRA can cross-check what you report, as we explain in our look at income from digital platforms.
GST/HST is the other threshold to watch. In general, you should register once your taxable sales pass $30,000 over four calendar quarters, though some work, such as commercial ridesharing, has different rules.
Our explainer on whether you need a GST or HST number says it’s a myth that you can only register above $30,000, and that charging tax before you’re required to can prevent a surprise obligation if your income jumps. The upside is that you can deduct reasonable business expenses; just don’t forget to track your receipts.
Side income also gives you a chance to save more. Self-employment income can build RRSP room, and contributing in a high-income year can bring a larger deduction.
Check your limit with our guide to how much you can contribute to your RRSP, and use the TFSA contribution room calculator if you’d rather keep growth tax-free.
If you’re looking for side hustle inspiration, check out our list of Canadian side hustle ideas.
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Read more about side hustles:
- When to walk away from your side hustle
- How to make more money in Canada: 6 side hustle ideas
- Audit-proof your side hustle
- How income from digital platforms is taxed in Canada
The post New report on side hustles shows nearly half of Canada wants in appeared first on MoneySense.
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