New to side income? Start here, calmly.
If you just started earning on the side and you are not sure whether taxes apply to you, take a breath. This is more straightforward than it looks. Answer four plain questions and get an honest read on whether you likely have income to report, the thresholds that actually apply to you, and a rough amount to set aside.
General guidance, not tax advice. Confirm with your accountant. Figures reflect tax year 2026.
Answer the questions above and your calm, plain-English snapshot appears below. Nothing is sent anywhere.
Side-hustle taxes, plainly.
Do I have to file taxes on a small side hustle in the US?
In the US, net earnings of $400 or more from self-employment generally trigger the federal filing requirement for self-employment tax (Social Security and Medicare) and Schedule SE. Under $400, you may not have to file on the self-employment income alone, but other income or filing requirements can change that, and states have their own rules. Keep your receipts regardless. This is general information, not tax advice.
Do I have to report side income in Canada if it is small?
Yes. In Canada there is no minimum income floor for reporting: all self-employment income goes on form T2125 regardless of how small, even a one-off gig. The $30,000 figure is a GST/HST registration trigger, not an income-tax exemption. This is general information, not tax advice.
How much should I set aside for taxes on a side hustle?
A common starting habit is to set aside roughly 20% to 35% of your net profit (income minus expenses) in a separate account, with the higher end for higher income. This is a rough cushion, not a calculation. Your real rate depends on your total income, your filing status, your bracket, and any tax already withheld elsewhere, so confirm the number with your accountant.
When do I need to register for GST/HST in Canada?
You generally must register for GST/HST once your taxable revenue passes $30,000 over four consecutive calendar quarters or in a single quarter. Below that small-supplier line, registration is optional, though some people register voluntarily to claim input tax credits. This is general information, not tax advice.
General guidance, not tax advice. Confirm with your accountant. Figures reflect tax year 2026.