Gig workers in Canada should set aside between 25% and 40% of their gross income for taxes, depending on their province and total earnings. This covers both income tax and CPP contributions. The exact amount depends on your marginal tax rate, which increases as you earn more. If you earn $30,000 from gig work in Ontario, for example, you might owe roughly $7,500 to $10,000 in combined federal and provincial income tax, plus additional CPP contributions. The safest approach is to calculate your estimated tax burden early in the year and set aside money in a separate account each month. Unlike employees, gig workers don't have taxes automatically deducted from their paychecks. You are responsible for paying income tax on all earnings from platforms like Uber, DoorDash, Skip the Dishes, and Fiverr. The CRA expects you to pay tax as you earn it, not just once a year. Additionally, gig workers must contribute to the Canada Pension Plan (CPP) at both the employee and employer rate. This means your total CPP contribution is roughly double what a regular employee pays. For 2026, this adds another 5% to 6% on top of your income tax obligation.
Yes, gig workers can deduct vehicle expenses used for work, including fuel, insurance, maintenance, and depreciation. You can either track actual expenses or use the simplified method (cents per kilometer). Keep receipts and a mileage log to support your claim.
You must register for GST/HST if your gig work income exceeds $30,000 in any four consecutive calendar quarters. Below that threshold, registration is optional but may be beneficial if you want to claim input tax credits on business expenses.
If you underpay, the CRA will charge interest on the unpaid amount and may impose late-filing penalties. It's better to overestimate and receive a refund than to owe money you don't have when your tax return is due.
You can deduct the business portion of your phone bill. If you use your phone 50% for work and 50% personal use, deduct 50% of the bill. Document your actual use to justify the percentage you claim.
Gig workers pay CPP on net self-employment income (revenue minus deductions), not on gross revenue. The maximum pensionable earnings for 2026 is approximately $68,500, so income above that amount is not subject to additional CPP contributions.