6 Lucrative Side Hustles in Canada to Boost Your Income

How do you start a side hustle?

In 2024 nearly nine million Canadians—about 28% of the population—reported having a side hustle, according to a survey cited by H&R Block. That is a big increase from 2022, when roughly 13% worked in the gig economy. Younger generations are particularly likely to run side gigs during regular work hours: Gen Z and Millennials reported they would be nearly twice as likely as Gen X and Boomers to do so if they could get away with it, and almost three in ten Canadian job seekers said they’d worked a side hustle on company time, according to a Harris Poll cited in the same research.

Starting a side hustle can be straightforward or complex depending on the route you choose. Below, three Canadians who’ve launched side incomes share practical takeaways about flexibility, earnings and the trade-offs of being your own boss. Use their experiences as a starting point while you consider what fits your schedule, budget and skills.

What is passive income, and how do you earn it?

“Passive income” often gets promoted online as effortless earnings, but in reality it requires upfront work or capital. Passive income refers to money that continues to come in after you’ve done the initial setup—examples include investment dividends, rental income or affiliate revenue from content you publish. While the idea of “making money in your sleep” sounds appealing, building a reliable passive stream usually demands time, knowledge and some risk.

Common passive-income avenues—like dividend stocks, rental properties or scalable online businesses—aren’t instantly accessible to everyone. Many influencers promote e-commerce side hustles that require sourcing products, running an online shop and handling customer service. These approaches can work, but there are no guarantees of profit, and scams and pyramid schemes exist, so exercise caution and research opportunities thoroughly.

With the passive-income concept clarified, the rest of this guide focuses on practical side-hustle ideas you can start in Canada, plus what to expect in terms of startup costs, time commitment and taxes.

How can you make more money in Canada?

Choose a side hustle that matches your circumstances. To narrow your options, ask:

1. Do you have the time and energy? If you’re already drained by work, caregiving or school, adding another commitment may not be sustainable.
2. What skills do you have? List your hard skills (e.g., web development, accounting) and soft skills (e.g., customer service, communication). Practical abilities like driving or basic repairs can open up opportunities quickly.
3. How much can you invest? Some side hustles need an upfront outlay—tools, materials or a website. Only spend what you can afford to lose and plan for ongoing costs.

Once you’ve reflected on those points, consider these six practical ways to earn extra money:

1. Driving for delivery or ridesharing services

If you own a car, ridesharing or food delivery can be a flexible option. Drivers can choose shifts and often work around other commitments. For newcomers, students or anyone needing variable hours, apps provide a quick entry point.

One driver, an accountant who moved to Canada from Brazil, started with Uber to cover higher-than-expected living costs. He values the flexibility and estimates earning $20–$30 per hour after tips and taxes, typically working about three hours a day, five days a week.

How much do Uber drivers make?

Earnings vary by city, hours worked and demand. Below is a simplified summary of common payout models for major platforms.

App	Payment structure
Uber	Drivers and couriers earn a fare for each ride or delivery, with higher rates possible during peak or surge periods.
Lyft	Pay is based on time and distance, plus tips and bonuses; rates vary by city and may include surge incentives.
SkipTheDishes	Courier pay reflects estimated driving distance and time, plus occasional promotional bonuses.

Remember to factor in vehicle costs—gas, maintenance, insurance and unpaid waiting time. Location matters: a recent municipal study found rideshare drivers’ net hourly earnings can be low once expenses are included. Some provinces are introducing minimum labour standards and rules that affect gig-worker compensation, so check local regulations.

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2. Turn a hobby into a side business

If you already enjoy a craft or skill, consider selling your products or services. One Toronto maker turned her embroidery hobby into a custom-order business, selling to local companies and community customers. She promotes her work on Instagram and uses the extra income to ease living costs while studying.

If you prefer a marketplace to manage payments and reach buyers, platforms such as Depop and Etsy can help, though they charge listing, transaction and processing fees—factor those into your pricing. Before investing significant time or money, validate demand beyond friends and family so you’re not left producing items that won’t sell.

Other hobby-based businesses include dog walking, tutoring, reselling clothing, fitness instruction or offering services related to your day-job experience—provided there is no conflict with your employer’s policies.

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3. Use your skills for freelancing

Freelancing is a natural route if you have marketable skills like writing, marketing, design, web development or IT support. One Toronto product marketing manager began freelancing after a contact led to writing opportunities; he expanded his client base by sharing a portfolio and networking. Freelancing can diversify income and build experience that benefits your main job or future career shifts.

Start by creating a clear portfolio and profiles on established platforms if you want to find clients quickly. Be mindful of low-paying gigs—your time is worth at least the minimum wage, and often more once you factor in taxes and business expenses.

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4. Rent out your car

Carsharing platforms let you rent out a vehicle you already own for passive-style income. You set daily rates, and platforms handle bookings and payment processing, typically taking a percentage of the rental. This can be a low-effort way to offset ownership costs, but weigh insurance, wear-and-tear and platform fees.

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5. Complete paid surveys

Paid survey sites can provide a small, flexible income stream, but payouts are usually modest and inconsistent. Some sites estimate modest monthly earnings if you complete multiple surveys daily, but you may need to join several panels to see meaningful returns. Treat surveys as supplemental pocket money rather than a serious income source.

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6. Can you make money on social media?

Monetizing social media requires building a niche audience and posting consistently. With a large and engaged following you can explore ad revenue, sponsored posts or directing followers to paid services you offer. Success typically depends on a focused content strategy and time to grow an authentic audience—this is often a medium- to long-term play, not instant income.

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When does a side hustle become a full-on business, and what should you do then?

The Canada Revenue Agency treats profitable, organized side activities as business income. Keep accurate records of all side-hustle income and expenses so you’re ready for tax season. Self-employment income is taxed at your marginal rate on top of other earnings, and if you earn more than $3,500 in a year you must account for Canada Pension Plan (CPP) or Québec Pension Plan (QPP) contributions.

One advantage of operating a side business is claiming legitimate business expenses—supplies, equipment and services that are necessary to run your operation. Keep receipts and documentation; credit card statements alone are insufficient for most claims.

If you expect annual revenue above $30,000, you must register for a GST/HST number and begin collecting the appropriate sales tax based on your customers’ locations. The current basic GST/HST framework is summarized below:

Provinces and territories	Sales tax name	Sales tax amount
British Columbia, Alberta, Manitoba, Saskatchewan, Quebec, Northwest Territories, Nunavut and Yukon	GST	5%
Ontario	HST	13%
New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island	HST	15%

Filing GST/HST returns allows you to recover sales tax paid on business purchases, offsetting some of the tax you collect. If taxes or registration processes feel overwhelming, consider consulting an accountant or tax professional.

Things you need to know about having a side hustle

Be realistic about expected income. Before you launch, create conservative revenue and expense projections so you can estimate take-home profit. Include non-monetary costs such as lost sleep, reduced leisure or less family time when you weigh whether the side hustle is worthwhile.

If time is limited, choose low-effort or flexible options so the side hustle doesn’t lead to burnout. Done well, a side gig can boost income, build new skills and provide a financial cushion—just plan carefully and keep clear records from day one.

Read more about budgeting:

• The cost of the average grocery bill in Canada–and how to lower yours
• Earning, saving and spending money in Canada: A guide for new immigrants
• The 6 best bank accounts for side hustles in Canada
• How to make money selling stuff online
• The one inflation tool you need for your finances
• Not sure what to put in your RRSP and TFSA? Make contributions anyway