Who has to fill out Form T2125?

Anyone in Canada who earns self-employment business, professional or commission income as a sole proprietor or as a partner in a partnership that does not file a partnership return. Ride-hailing and delivery drivers, freelancers, tutors, cleaners and online sellers usually use it. Fill out a separate T2125 for each business.

It goes with your income tax return. If you or your spouse or common-law partner had self-employment income, the return is due June 15 of the next year, but any balance owing is due April 30. Interest runs on unpaid amounts from May 1.

Do I include GST/HST in my income on T2125?

Line 3A starts with gross sales including the GST/HST you collected, and line 3B takes it back out. If you are a registrant claiming input tax credits, leave GST/HST out of your expenses too. If you use the quick method, the difference between GST/HST collected and remitted is added back as government assistance on lines 3D to 3F.

Can I claim my car and my home office?

Yes, the business share. For a car, Chart A splits total costs by business kilometres over total kilometres, and car-loan interest is capped by Chart B. For a home office, Part 7 splits home costs by the workspace share of the home; the claim cannot create or increase a business loss, and the rest carries forward.

How to fill out Form T2125

Plain-English walkthrough of CRA Form T2125: who uses it, gross income and GST/HST, expense lines, car and home-office splits, June 15 and April 30 deadlines.

Last updated: 2026-10-31

Form T2125 is the page of your tax return where a self-employed person shows what the business earned and spent. The result, line 9946, is your net self-employment income. Most people never see the paper form: tax software asks the same questions line by line. This guide follows the 2025 form, T2125 E (25); the 2024 form uses the same line numbers.

Sample T2125 worksheet: summary and line-by-line amounts for CRA Form T2125 — Pages from a sample packet made by our wizard, with made-up data.

Step 1: Check that T2125 is the right form

Use T2125 for business income (selling goods or services), professional income (accountants, lawyers, engineers and other professionals) and commission income. Use a different form for:

Farming: Form T2042.
Fishing: Form T2121.
Rent from property you own: Form T776.

Each business gets its own T2125. If you drive for Uber and also sell on Etsy, that is usually two businesses and two forms.

Step 2: Part 1 and Part 2, identification

Your name, social insurance number, business name (leave blank if you use your own name), business number if you have one, address, fiscal period (January 1 to December 31 for most sole proprietors), main product or service, and a six-digit industry code. CRA lists codes in the appendix of Guide T4002 for paper filers; tax software usually has its own search. Part 2 asks how many websites or platform pages earn you income and what share of gross income came from them.

Step 3: Part 3, income

For business income, line 3A is your gross sales, commissions or fees, including GST/HST you collected. Line 3B removes GST/HST, provincial sales tax, returns, allowances and discounts. Professionals use 3H to 3N instead, the same idea.

Lines 3D to 3F are only for the GST/HST quick method. The total flows to line 8000, then other income (line 8230) and last year's reserves (line 8290) give gross business or professional income on line 8299.

If you sell goods, Part 3D works out cost of goods sold: opening inventory (8300), purchases (8320), direct wages (8340), subcontracts (8360), other costs (8450), minus closing inventory (8500). Gross profit is line 8519.

Step 4: Part 4, expenses

Enter only the business part of each expense. The main lines:

8521: Advertising
8523: Meals and entertainment (50% of what you spent)
8590: Bad debts
8690: Insurance
8710: Interest and bank charges
8760: Business taxes, licences, and memberships
8810: Office expenses
8811: Office stationery and supplies
8860: Professional fees (legal and accounting)
8871: Management and administration fees
8910: Rent
8960: Repairs and maintenance
9060: Salaries, wages, and benefits
9180: Property taxes
9200: Travel expenses
9220: Utilities (including business phone and internet)
9224: Fuel costs (except for motor vehicles)
9275: Delivery, freight, and express
9281: Motor vehicle expenses (from Chart A)
9936: Capital cost allowance (CCA)
9270: Other expenses (specify)

Total expenses are line 9368, and net income before adjustments is line 9369. See our list of T2125 expenses for what goes where.

Step 5: Car and home office

Car (Chart A). Add up the year's fuel, insurance, licence, maintenance, interest and eligible lease costs for the vehicle. Multiply by business kilometres divided by total kilometres, then add business parking and supplementary business insurance. That is line 9281. Interest on a passenger vehicle loan is capped by Chart B: $350 a month for vehicles bought after 2023, $300 for those bought from 2001 to 2023. Keep a logbook.

Home office (Part 7). You can claim it only if the space is your principal place of business, or you use it only for the business and regularly meet clients there. Split heat, electricity, insurance, maintenance, mortgage interest, property taxes and rent by the workspace share of your home (and by hours, if the space is also lived in). The claim on line 9945 cannot be more than your net income at amount 5D: it cannot create or increase a loss. The unused part carries forward to next year.

Step 6: Your net income and the deadlines

Line 9946 is your net income (loss). It goes on line 13500 of your return for business income, 13700 for professional income, or 13900 for commission income; gross income from line 8299 goes on 13499, 13699 or 13899.

April 30: pay any balance owing.
June 15: file the return (self-employed deadline).

Self-employed people also pay both the employee and employer shares of CPP contributions on net earnings, through Schedule 8 of the return (QPP in Quebec). And if your taxable sales pass $30,000 in a calendar quarter or over four consecutive quarters, you generally must register for GST/HST. Taxi and commercial ride-sharing drivers must register from the first dollar.

Get it done

The T2125 worksheet asks these questions in plain words, applies the 50% meals rule, the car interest cap and the home-office loss limit, and gives you every line number with its amount to type into your tax software. The summary is free; the full worksheet is $29.

Source: CRA Form T2125 and Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income. This page is general information, not tax advice.