Many Canadian gig workers not aware of tax rules

Understanding gig work and taxes

Gig workers reported not being forthcoming with what their income was come tax time. More than a quarter of respondents (28%) said they didn't declare all gig income when they filed their taxes last year. Now that tax filing season is in full swing for income earned in 2024, 30% said they weren't planning to declare all-gig related income. Among gig workers, more than a third said they were willing to risk not declaring 'any' gig work related income.

However, once respondents learned of the CRA’s new rules requiring gig platforms to report user information and income to the agency, many had a change of heart.

H&R Block's research revealed that two-thirds of gig workers were not aware of these new rules. When they learned about the new rules, 71% of gig workers said they were more inclined to declare their gig income. However, more than a third said despite learning of these new rules, they are still not inclined to report all gig income.

This exposes the reality for many gig workers that the tax implications around their source of income is not entirely clear to them. In fact, more than a quarter reported that they don't have a clear understanding. Meanwhile, 37% say they don't fully understand any nuances between being a gig worker versus being classified as self-employed for tax purposes.

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The increasing reality of gig work

Most gig workers (90%) indicate thier gig work is a second income to their primary employment, versus 10% who say it's their sole income. 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 to 50% of income for 16% of gig workers and between 50 to 99% for 15%.

As well, there is a shift in how gig workers are increasingly open about side hustle with employers. A majority (60%) of gig workers who say their primary employer is aware of their side hustle, compared to 49% a year ago.

In contrast, this year's study reveals that 40% of gig workers say that their primary employer isn't aware.

Survey methodology

The study was conducted by H&R Block in French and English from February 12 to 13, among a nationally representative sample of 1,790 Canadian members of the Angus Reid Forum.