Why Canadians are starting side hustles
A recent Ownr survey of 1,501 Canadian adults found that 23 % of respondents currently earn money from a side hustle, while another 24 % say they would like to start one. The primary motivation is financial: many Canadians use side hustles to top up regular income, cope with the rising cost of living, or pay down debt.
Generational differences shape these motives. Gen Z side hustlers cite the cost of living as a key driver and often aim to turn a pastime into income. Millennials are more focused on reducing debt, whereas Gen X and baby boomers typically look to supplement their main earnings.
Supporting data from RBC’s 2026 Small Business Poll shows that nearly half of Gen Z business owners run a side hustle alongside a full‑time job. About 43 % of all side hustlers view their gig as a real business, a figure that rises to 55 % among Gen Z participants. Looking ahead, 19 % say they are likely to quit their day job and go full‑time on their side hustle, and 22 % already earn enough from their side work that they do not need a regular job.
Before making the leap to full‑time, most side hustlers want proof that the venture can sustain them financially. They indicate they would need to earn more than their current salary or achieve consistent profitability. Considerations such as employee benefits and retirement savings also play a role in the decision‑making process.
Side hustle roadblocks
On average, side hustlers devote 13 hours per week to their ventures, with 14 % spending close to 20 hours weekly. The biggest obstacle reported is finding customers, followed by the challenge of fitting hustle work around a primary job and personal life.
Uncertainty about legal and tax responsibilities is widespread. Approximately 37 % of respondents do not know when they need to register their business, 38 % say they do not understand the legal requirements that apply to them, and 42 % are unsure whether incorporation is the right choice. Women are less likely than men to feel confident about registration timing or tax obligations.
Side gigs and the CRA
The Canada Revenue Agency requires residents to report all self‑employment income, including earnings from gig and platform work. Side hustlers may also owe Canada Pension Plan contributions, and as self‑employed individuals they must pay both the employee and employer shares.
Because no employer withholds tax, it is advisable to set aside a portion of each payment for tax purposes. Platform sellers should be aware that the CRA can cross‑check reported income against data from digital platforms.
Goods and Services Tax/Harmonized Sales Tax (GST/HST) registration becomes necessary once taxable sales exceed $30,000 over four consecutive calendar quarters. Certain activities, such as commercial ridesharing, follow different thresholds, so it is important to verify the specific rules that apply to a given hustle.
