Paying Tax on Online Survey Income in Canada

Canada Revenue Agency requires all income generated by individuals and businesses throughout the year to be claimed on their income tax returns.

Earnings from survey taking is considered “Other Income”

Income earned by Canadians from taking online surveys is considered “other income” and should be entered on line 104 of an individual tax return. Report the full amount of income you generated on this line, and simply label it as “online survey taking”. You should include the income you’ve received from gift cards and cash payments alike.

Don’t expect to receive a T4

You will not be issued a T4 form by an online survey company at the end of the year, as being a participant in surveys does not make you an employee of these companies. T4’s are only issued by companies to employees, and survey takers are considered more akin to contractors than employees. That’s why a survey panel will never ask you for your SIN and doesn’t take deductions like EI from your payment amounts.

How to claim your earnings

The amount entered on line 104 of your individual income tax return will be added to the income you generated throughout the year from other sources, i.e. employment, investments, etc. If your income is very low, it’s possible that you won’t pay any taxes at all. This is because there is a ‘basic personal amount’ that all Canadians who are not high earners can claim – this amount is approximately $13,800 per year.

The federal and provincial income tax rates vary per year and per province.

2022 federal income tax brackets are as follows:

15% on the first $50,197 of taxable income, plus
20.5% on the next $50,195 of taxable income (on the portion of taxable income over 50,197 up to $100,392), plus
26% on the next $55,233 of taxable income (on the portion of taxable income over $100,392 up to $155,625), plus
29% on the next $66,083 of taxable income (on the portion of taxable income over 155,625 up to $221,708), plus
33% of taxable income over $221,708

Remember that these are marginal tax rates. If you made $52,000 in 2022 for instance, you wouldn’t pay 20.5% federal tax. You would pay 15% on the first $50,195 and then 20.5% on the remaining amount (approximately $1800). You would also claim the basic personal amount, which would also reduce your tax bill.

More information about paying taxes can be found on the CRA’s website.

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***The information on this web page is not meant to substitute the advice from a professional. Please consult an accountant or other professional advisor to assist you in best using the information presented here. ***