Side Hustle Bottom Line

The rise of side hustles in Canada is undeniable. Whether it’s freelancing, consulting, ridesharing, or running an online shop, that extra income can make a big difference in covering bills, paying down debt, or saving for bigger goals. But one reality often catches people off guard: taxes.

When you already earn $50,000 on a T4 job and add another $10,000 in self-employed income, you don’t get to keep the full $10K. Instead, that extra income gets taxed at your marginal tax rate—the rate applied to the next dollar you earn. On top of that, as a self-employed person you’re responsible for both the employee and employer portions of Canada Pension Plan (CPP) contributions, and you can choose to contribute to Employment Insurance (EI) if you want access to special benefits.

So how much do you actually keep from your side hustle? Let’s break it down by province.

The Side Hustle Take-Home by Province (2025)

Assuming $50,000 in T4 income plus $10,000 in side hustle earnings, here’s what happens to that extra $10K:

• British Columbia: Tax ~22.7% ($2,270), CPP $1,190, EI $166 → Net ~$6,374

• Alberta: Tax ~25% ($2,500), CPP $1,190, EI $166 → Net ~$6,144

• Saskatchewan: Tax ~25.5% ($2,550), CPP $1,190, EI $166 → Net ~$6,094

• Manitoba: Tax ~27.8% ($2,775), CPP $1,190, EI $166 → Net ~$5,869

• Ontario: Tax ~20.05% ($2,005), CPP $1,190, EI $166 → Net ~$6,639

• Québec: Tax ~26.5% ($2,652), CPP $1,190, EI $166 → Net ~$5,992

• New Brunswick: Tax ~27.4% ($2,740), CPP $1,190, EI $166 → Net ~$5,904

• Nova Scotia: Tax ~30.5% ($3,048), CPP $1,190, EI $166 → Net ~$5,596

• Prince Edward Island: Tax ~28.5% ($2,847), CPP $1,190, EI $166 → Net ~$5,797

• Newfoundland & Labrador: Tax ~29.5% ($2,950), CPP $1,190, EI $166 → Net ~$5,694

• Yukon: Tax ~21.4% ($2,140), CPP $1,190, EI $166 → Net ~$6,504

• Northwest Territories: Tax ~20.9% ($2,090), CPP $1,190, EI $166 → Net ~$6,554

• Nunavut: Tax ~19% ($1,900), CPP $1,190, EI $166 → Net ~$6,744
  

A Closer Look: Ontario Example

Let’s zoom in on Ontario to see how the math works step by step.

• Gross side hustle income: $10,000

• Income tax (marginal ~20.05%): $2,005

• CPP contributions (11.9% self-employed): $1,190

• EI contributions (optional, 1.66%): $166

• Total deductions: $3,361

• Net take-home: $6,639
  

So from that $10,000 in extra invoices, your actual pocket amount is closer to $6,600—still meaningful, but definitely less than expected if you weren’t planning for taxes.

What These Numbers Really Mean

That $10,000 invoice or cash transfer looks great, but in practice, it works out to anywhere from $5,600 to $6,700 in take-home pay, depending on where you live.

While it may sting to see so much shaved off, there are a few important points to remember:

1. Plan for it upfront. A good rule of thumb is to set aside 30–40% of every side hustle dollar for taxes and CPP. That way, when tax season rolls around, you won’t be scrambling to cover the bill.

2. CPP contributions aren’t wasted. Unlike pure taxes, CPP payments help build your retirement entitlement. More income today means a stronger CPP benefit later.

3. EI is optional. If you don’t need access to special EI benefits (like maternity/parental leave), you can skip the $166 contribution. That puts a bit more cash in your pocket.

4. Provincial differences matter. As shown above, someone in Nunavut could keep almost $1,200 more from their side hustle than someone in Nova Scotia—just because of where they live.
   

The Bottom Line

A side hustle is still worth it. Even after taxes and contributions, keeping $6,000+ from an extra $10,000 is a powerful boost to savings, investments, or debt repayment. The key is to go in with eyes wide open. Track your income carefully, put aside a chunk for taxes, and think of CPP as forced retirement savings.

With the right planning, your side hustle can become more than just extra cash—it can be the foundation of long-term financial freedom.