Taxes and the sharing economy: what you need to know

What is the sharing economy?

The sharing economy connects individuals or businesses that are looking for a particular product or service to those that have it. Sharing economy arrangements are generally booked using online platforms through a third party, using a website or a software application.

Do you earn income from the sharing economy?

The sharing economy can take a variety of forms, such as:

  • accommodation sharing: renting out homes, rooms, cottages
  • transportation: ride-sharing, rentals of bikes, boats
  • space rentals: gardens, desks, workspaces, laboratories
  • making and selling goods: household goods, jewelry, beauty products, food, meals
  • providing services: esthetics services, animal care, freelance professional expertise

What are your tax obligations?

  • If you earn any income through the sharing economy, it is subject to the same taxation and GST/HST rules that apply to income earned from a property or business.
  • All income earned through the sharing economy must be reported on tax returns.
  • Taxpayers who earn more than $30,000 through the sharing economy need to register for a GST/HST account.
  • If you are earning money from ride-sharing platforms, you must register for a GST/HST account, regardless of whether you earn more than $30,000 annually.

To learn more about your tax obligations, visit Sharing Economy.

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Contacts

Media Relations
Canada Revenue Agency
613-948-8366
cra-arc.media@cra-arc.gc.ca

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