United States
- You must report all gig and side income, even if you don’t receive a form for it.
- If your net earnings from self-employment are $400 or more, you must file Schedule SE and pay self-employment tax (Social Security and Medicare). Income and expenses usually go on Schedule C.
- Payment apps and online marketplaces must send Form 1099-K only when you have more than $20,000 in payments and more than 200 transactions in a year, after the One Big Beautiful Bill restored that threshold. You can still get one below that, and the income is taxable either way.
- You may need to make quarterly estimated tax payments.
Sources: IRS: manage taxes for your gig work · IRS: Form 1099-K threshold · IRS: self-employed tax center
United Kingdom
- You can earn up to £1,000 a tax year (6 April to 5 April) from self-employment and side hustles tax-free under the trading allowance. This is a total across all your hustles.
- Above £1,000 you need to register for Self Assessment and can either deduct the £1,000 allowance or your actual expenses, but not both.
- Online platforms now share information about sellers with HMRC, so keep records.
Sources: GOV.UK: tax-free trading allowance · GOV.UK: income from online platforms
Canada
- Report your side income on your tax return.
- Most businesses must register for GST/HST once taxable revenue goes over $30,000 in a calendar quarter or over four consecutive quarters (the small supplier limit).
- Commercial ride-sharing drivers must register for GST/HST from their first ride, whatever they earn.
Sources: CRA: when to register for GST/HST · CRA: GST/HST and ride-sharing
Australia
- Declare side hustle income in your tax return.
- You must register for GST if your GST turnover is $75,000 or more.
- Ride-sourcing drivers must have an ABN and register for GST before their first trip, regardless of income.
Sources: ATO: registering for GST · ATO: ride-sourcing registrations
Simple habits that help
- Open a separate bank account for side hustle money.
- Save a share of every payment for tax.
- Keep receipts for expenses.
- Use a spreadsheet or app to track income: see LedgerGuide. Selling on Etsy? Try our Etsy Seller Profit & Expense Tracker.
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Take the side hustle quizFrequently asked questions
Do I have to pay taxes on a side hustle?
Generally yes. Thresholds differ: in the US self-employment tax applies from $400 of net earnings; in the UK the first £1,000 of trading income is covered by the trading allowance.
Do I need to report side hustle income if I don’t get a 1099?
Yes. The IRS says you must report all income from gig work, whether or not you receive a form.
What is the 1099-K threshold for 2026?
More than $20,000 in payments and more than 200 transactions in the calendar year.
Should I talk to an accountant?
If your side income is growing, a short consultation with an accountant or tax professional can save money and stress. This page is general information only.
Last reviewed: October 2026. General information only — check providers' official sites for current features and pricing.