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How to Make Money Online in Canada: Methods, Costs and Taxes

Updated

Figures verified against Canada Revenue Agency, Google Help and 7 more sources, last checked November 2026. See sources

Ways to earn money online differ in what it takes to start, how quickly money comes in and what the platform keeps. This page compares the main ones on what the platforms themselves publish. It doesn’t rank them by earnings: those depend on the person, and the platforms’ pricing and help pages don’t state them. It is part of the side hustles hub; for app-based local work see gig economy apps.

Methods compared

MethodWhat you need to startHow money comes inMore detail
FreelancingA skill clients pay for (writing, design, development, bookkeeping)Clients pay per project or per hour; platforms take a feeFreelance platforms
Online storeProducts to sell, or digital products you makeSales, less platform and payment feesEtsy seller taxes
YouTube and other creator platformsAn audience large enough to qualify for the platform’s programPayments through the platform’s creator program, plus any sponsorshipsThis page
Research studies and surveysTime, and meeting each panel’s minimum ageSmall rewards per study or surveyPaid survey sites
Online tutoringKnowledge of a subjectClients or a tutoring service pay per sessionOnline jobs for teens
InvestingMoney to investInterest, dividends and growthPassive income ideas

Freelancing

Freelancing sells your skills to clients, either directly or through a marketplace. The marketplace fee comes out of each payment: Fiverr takes 20% of every sale, including tips, and Freelancer.com charges 10% or US$5.00 (whichever is greater) on fixed-price projects. Freelance platforms for Canadians compares the platforms, and the freelancing guide covers setting up and taxes.

Selling online

Your own store and a marketplace charge in different ways:

PlatformWhat it chargesSource
Shopify (own store)Basic plan $49 CAD a month paid monthly, or $37 CAD a month paid yearly; card rates from 2.8% + 30¢; 3-day free trialShopify pricing
Amazon.ca (marketplace)Individual plan $1.49 per item sold, or Professional plan $29.99 a month, each plus other selling fees such as referral feesAmazon.ca selling plans
Etsy (marketplace)Seller fees set out in Etsy’s fees and payments policyEtsy
Two comparisons from those published prices. Shopify Basic for a year costs $588 paid monthly or $444 paid yearly. On Amazon.ca, the Professional plan’s monthly fee equals the Individual plan’s per-item fee at about 20 items a month; the plans also differ in features, which Amazon’s page lists.

Etsy seller taxes covers when selling handmade goods, digital downloads or resale items counts as a business and how that income is reported.

YouTube and creator income

YouTube’s terms require you to be at least 13 to use the service, with a parent’s or guardian’s permission under 18. The YouTube Partner Program’s eligibility thresholds are either:

  • 1,000 subscribers and 4,000 qualified public watch hours in the last 12 months, or
  • 1,000 subscribers and 10 million qualified Shorts views in the last 90 days.

Earnings are paid through Google AdSense, which accepts applicants who are at least 18; a younger creator’s parent or guardian can sign up with their own Google account, and payments then go to that adult. Sources: YouTube Partner Program overview, AdSense eligibility.

Research studies and paid surveys

Survey panels and research platforms pay small amounts per survey or study, and each sets its own minimum age and cash-out rules. Prolific, for example, is open to adults over 18 in Canada and other supported countries and pays to PayPal once your balance reaches £6 or US$6. Paid survey sites in Canada compares the panels.

Avoiding online job scams

The Canadian Anti-Fraud Centre describes job scams built around online tasks, fake online stores and paid surveys. Its warning signs include:

  • You receive a job offer you did not apply for.
  • The company uses a web-based email address instead of its own business domain.
  • You are asked to join a platform, download software or complete simple tasks for fast money.
  • The job requires upfront deposits, “upgrade fees” or “unlock payments”.
  • You see a balance on the website or app but cannot withdraw it.
  • You are asked to recruit others; the Centre notes that pyramid selling is illegal in Canada.
  • You are asked to receive money in your bank account and forward it elsewhere.

Taxes on online income

  • Business income. Freelancing, selling and creator income from a business goes on Form T2125 with your T1 return; you deduct the expenses of earning it, including platform fees. Side hustle taxes covers when side income counts as a business.
  • GST/HST. You have to register for the GST/HST once you make taxable sales in Canada and are no longer a small supplier: that happens when your taxable sales go over $30,000 in a single calendar quarter (register from that sale) or over the last 4 consecutive calendar quarters (by the end of the month after that quarter); below that you can register voluntarily.
  • CPP. You contribute to the CPP if you are over 18, work in Canada outside Quebec and earn more than $3,500 a year; contributions stop when you turn 70, and from 65 someone already receiving a CPP or QPP retirement pension can choose to stop. Self-employed people pay both shares, as the freelancing guide explains.
  • Records. Keep income records and receipts. The CRA says to keep your records for six years from the end of the last tax year they relate to (unless it lets you destroy them earlier), at your Canadian residence or place of business unless it allows another place; you are responsible for them even when a bookkeeper or accountant keeps them, and you must make them available to the CRA on request.
  • Foreign platforms. Income paid in US dollars or another currency is reported in Canadian dollars; see foreign income tax in Canada.

Sources

The figures and rules on this page come from these sources, last checked against them on November 13, 2026. How we check facts.