Self-Employed and Small Business Tax in Canada
T2125, instalments, GST/HST, incorporation and paying yourself.
This hub is for anyone with income that doesn't come on a T4: freelancers, consultants, side hustlers, gig drivers and incorporated owners. Self-employment changes three things at once: you report business income and expenses yourself, you pay both halves of CPP contributions, and the CRA may expect instalments instead of waiting for the return.
Start with the self-employed tax guide, then the side-hustle guide if the business is small. The incorporation guides cover when a corporation pays off, salary versus dividends, and when a holding company earns its keep. Instalment and GST/HST rules are explained with the thresholds for the year named and linked to the CRA.
Earning the income — rates, clients, registration — lives in the Earning More hubs; this hub prices that income after it exists.
What this hub helps you decide:
- What can I deduct against business income?
- Do I have to register for GST/HST, and when?
- Do I owe quarterly instalments?
- Would incorporating, salary or dividends lower my tax?
Updated November 2026 · 7 guides by Andrew
Start here
- Self-Employed Tax Guide 2026
- Side Hustle Taxes in Canada: T2125, GST/HST Registration, and Platform Reporting
- Quarterly Tax Instalments in Canada 2026 — Self-Employed Guide
- Should You Incorporate? A Guide for Canadian Freelancers & Consultants
- Salary versus Dividends for an Incorporated Canadian
New to taxes? Read the overview first: How Canadian Taxes Actually Work — A Plain-English Guide.
All Self-Employed & Small Business Tax guides
Side Hustle Taxes in Canada: T2125, GST/HST Registration, and Platform Reporting
A side hustle is business income. Most people register for GST/HST only after $30,000 of taxable supplies. You still report the income below that line, on Form T2125.
Uber, DoorDash, and Instacart Driver Taxes in Canada
Self-employed rideshare drivers register for GST/HST from the first fare. Delivery drivers use the $30,000 small-supplier test. Both still report income on Form T2125.
Holding-Company Income: When a Holdco Earns Its T2
A holding company can separate surplus and risk from an operating company. It does not create a new tax shelter, and it is not a reason to incorporate.
Salary versus Dividends for an Incorporated Canadian
Salary creates RRSP room and CPP. Dividends do not. Integration is the design of the system, and the mix is a file decision, not a slogan.
Quarterly Tax Instalments in Canada 2026 — Self-Employed Guide
Miss a CRA quarterly instalment and interest starts at the prescribed rate. Self-employed Canadians need the instalment calendar, not a surprise in April.
Should You Incorporate? A Guide for Canadian Freelancers & Consultants
The federal small-business rate is 9% on the first $500,000 of active business income. This guide weighs whether incorporating is worth it.
Self-Employed Tax Guide 2026
Self-employed Canadians can deduct home-office, vehicle, and other business costs employees usually cannot. The rules decide what survives a review.