A significant number of Canadian gig workers are reconsidering their tax filing habits after learning that digital platforms such as Uber, DoorDash, and Airbnb are now required to report user earnings to the Canada Revenue Agency (CRA), according to a new survey by H&R Block Canada.
The survey found that 30 per cent of gig workers initially did not plan to report all their earnings this tax season, but 71 per cent changed their minds upon learning about the new federal legislation. Despite this, more than a third (36 per cent) remain reluctant to report their full gig-related income, raising concerns about compliance and financial literacy in the expanding gig economy.
“In light of the new federal legislation, the CRA is able to compare what gig workers report their income to be from digital platforms against what the digital platform reports on their behalf,” said Yannick Lemay, a tax expert at H&R Block Canada. “Despite this, many Canadians still appear tempted not to declare all their gig-related income, which carries significant risks and is breaking the law.”
Awareness gap and financial pressures
Two-thirds (66 per cent) of gig workers surveyed were unaware of the rule change, which took effect this year. Under the new law, digital platforms must file an information return with the CRA, detailing user earnings. The deadline for gig platforms to submit 2024 earnings data was Jan. 31, 2025.
Financial pressure is driving many Canadians into the gig economy. Nearly one in four Canadians (23 per cent) report having taken on gig work, with 45 per cent saying they did so due to the rising cost of living. For most, it remains a supplementary income source, representing about 24 per cent of their total earnings.
“There are a multitude of tax benefits and credits that gig workers can claim to put money back in their pockets,” Lemay said. “Understanding these deductions and filing properly is key.”
Employer transparency and tax implications
The survey also found that 40 per cent of gig workers with primary employers have not disclosed their side work. Meanwhile, 37 per cent of gig workers admitted to being unclear on the tax implications of gig income, particularly the distinction between gig work and self-employment.
Unlike traditional employees, most gig workers do not receive T4 slips but may receive a T4A from platforms reporting income on their behalf. Earnings must be declared on Form T2125, which also allows deductions for business expenses such as transportation, home office costs, and software subscriptions.
Beyond income taxes, gig workers earning over $30,000 annually must register for a GST/HST number, with ride-sharing drivers required to do so regardless of income level. While contributions to the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) are mandatory for those earning over $3,500, employment insurance (EI) remains optional.
Changing attitudes and compliance risks
While awareness of tax obligations is improving, some gig workers remain willing to take risks. The survey found that 28 per cent admitted to not declaring all their gig income last year. With the new CRA reporting rules in place, those who continue this practice may face penalties and interest charges.
H&R Block Canada is emphasizing the importance of accurate tax reporting and educating gig workers on available deductions. “Filing gig income properly unlocks tax credits, benefits, and even increased RRSP contribution room,” Lemay said. “It pays to stay compliant.”
