In Canada, any money you make from a side hustle is considered income that must be claimed on your income tax return. However, a side hustle can transition into a bonafide business when it evolves from a casual, supplementary income source into a more structured, primary source of revenue. If your side hustle becomes a business, you'll need to comply with tax regulations, get applicable permits or licenses, and potentially register for a GST/HST account if your annual revenue exceeds $30,000.