What an Instagram creator in Canada reports and deducts, from brand deals and gifted products to clothing, makeup and props, with every rule linked to its government source. The second post in our content creator series, after YouTube creators; the next is TikTok creators.
For most Canadian creators, Instagram income is business income: sponsored posts and brand deals, affiliate commissions and discount codes, money Instagram pays you, and the fair market value of gifted products and brand trips all go on Form T2125, including money from brands outside Canada. You can deduct reasonable costs you incur to earn it, business part only: your phone, camera and lighting through capital cost allowance, editing apps, paid promotion, photographers and editors, props bought for content and travel to shoot. Personal expenses are not deductible, which is why clothing and makeup need care. Register for the GST/HST once your taxable revenue passes $30,000. As a reference point, Statistics Canada data built from tax returns shows independent artists, writers and performers spending on average 54% of revenue on expenses.
What Instagram Income Do You Have to Report?
The CRA’s page for social media influencers names Instagram and lists the ways creators earn money. For an Instagram account that usually means:
- Brand deals and sponsored posts, which the CRA lists as advertising for other businesses, collaborations, partnerships and sponsorships.
- Affiliate links and discount codes, the referral codes on the CRA’s list.
- Money Instagram pays you, and what followers send you: the CRA lists subscriptions, tips, gifts and donations.
- Gifted products and trips from brands. The CRA counts non-monetary income too, at fair market value.
As a creator resident in Canada you report all of it, monetary and non-monetary, earned in and outside Canada. A sole proprietor reports it as self-employment income on Form T2125; an incorporated account reports it on the corporation’s T2 return with Schedule 125. Self-employed creators also pay both the employee and employer parts of their CPP contributions on Schedule 8, as the CRA’s platform economy page explains.
The CRA’s own example is an Instagram creator. Maya, a travel creator who posts on Instagram, Pinterest and YouTube, is paid for sponsored posts, receives free products and services that she features in her posts, is offered a free all-inclusive vacation valued at $5,000, and earns 10% of the sales a clothing company makes after she promotes it. The CRA says she includes all of it: the money from her posts, the commissions and the $5,000 vacation. Keep a list of what brands send you, when, and what it was worth.
Which Industry Code Does an Instagram Creator Use?
Form T2125 asks for an industry code for your main business activity. Statistics Canada’s NAICS list has no code named for influencers or Instagram. Two codes come up:
- 711512, Independent actors, comedians and performers, for freelancers who perform in artistic and cultural productions. Its examples include an independent celebrity spokesperson and independent models, and it includes independent celebrities engaged in endorsement. It fits a creator whose main work is being on camera and promoting brands.
- 512110, Motion picture and video production, for producing videos and commercials. It fits a creator whose main product is the video itself, such as Reels made for brands to use.
The CRA asks for the code that most closely describes your main activity, and says that if you file electronically you use the codes in your tax software. We pick the code with you, based on how your account actually earns.
Instagram Expenses at a Glance
The CRA’s rule from Guide T4002 is that you can deduct a reasonable expense you incur to earn income, only the business part of it, and never a personal expense. This table applies that rule to the costs of running an Instagram account. The GST/HST row applies only if you are registered for the GST/HST.
| Cost | What a sole proprietor can claim |
|---|---|
| Phone you shoot and post with | CCA, Class 50 at 55%, business part |
| Camera, lenses, ring light and tripod | CCA: Class 8 at 20%, or Class 12 for a small tool under $500 |
| Editing apps and software subscriptions | The business part, as a yearly cost |
| Paid promotion of your posts | Deductible; the Canadian content rules do not apply to foreign websites |
| Photographers, editors and other freelancers | Reasonable fees |
| Props bought only to create content | A business cost, in our reading |
| Clothing and makeup you also wear day to day | Generally personal, not deductible |
| A room in your home used as a studio | The workspace share, if it meets the CRA conditions |
| Cellphone airtime and internet | The business percentage |
| Travel to shoot content | The business part, meals at 50% |
| Accounting and tax return fees | Deductible |
| GST/HST you pay (registrants) | Input tax credit for the business part |
The CCA classes are the CRA’s; which class a piece of gear falls in, and the props and clothing rows, are our reading, explained in the next sections.
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How Do You Deduct a Phone, Camera and Lighting?
Gear that lasts is not deducted in the year you buy it. The CRA’s page on other business expenses says that if you buy a computer, cellular telephone or other such equipment, you cannot deduct the cost; you claim capital cost allowance (CCA) instead, a yearly write-off by class. From the CRA’s classes of depreciable property:
- Class 50, 55%: general-purpose computer equipment. We put smartphones and editing computers here. Under proposed changes, new Class 50 property acquired after April 15, 2024 and available for use before 2027 is eligible for a 100% first-year deduction.
- Class 8, 20%: tools costing $500 or more and other equipment you use in the business. In our reading, a camera, lenses and lighting that cost $500 or more belong here.
- Class 12, 100%: tools that cost less than $500, which are fully deductible in the year of purchase, and software that is not systems software. In our reading, a ring light or tripod under $500 can be a small tool here.
Under the accelerated investment incentive, property that becomes available for use from 2024 to 2027 can be claimed at its class rate in the first year, without the usual half-year rule. Only the business part counts: if your phone is also your personal phone, claim the business share. Our cell phone and internet guide covers the business percentage, and our guide to buying equipment before December 31 covers timing.
- In 2026 you buy a phone for $1,500, used 70% for your account, a camera for $1,200 and a ring light for $180, both used only for content.
- Phone, Class 50 at 55%: $825, business part $577.50, or $1,050 if the proposed 100% first-year deduction applies.
- Camera, Class 8 at 20%: $240. Ring light as a small tool in Class 12: $180.
- First-year CCA: $997.50, or $1,470 with the proposed rule.
The numbers are our example; the rates are the CRA’s.
Can You Deduct Clothing, Makeup and Props?
The CRA has no page on clothing, makeup or props used on camera. What applies is the general rule in Guide T4002: you cannot deduct personal expenses, and only the business part of an expense goes on Form T2125. In our reading, that works out like this:
- Props and set pieces you buy only to create content, such as backdrops, display stands or a product you buy to show your audience, are business costs.
- Clothing, shoes, makeup and haircuts you can also use in daily life are personal, even when they appear in a post. Wearing something on camera does not by itself make it a business expense.
- Items kept and used only for content that are not suited to everyday wear are the grey area. We look at them one by one, with the receipt and a note of how each was used.
What Else Can an Instagram Creator Deduct?
- Photographers, editors and freelancers. Reasonable fees you pay photographers, video editors, designers or a manager to make and run your content are business costs. If you hire employees, their pay goes on line 9060 with payroll deductions. Amounts you pay yourself are not deductible.
- Paid promotion. Boosted posts and ads that promote your account go on line 8521. Guide T4002 sets Canadian content or ownership requirements for advertising, and says they do not apply if you advertise on foreign websites.
- Phone and internet. Line 9220 lets you deduct the percentage of cellphone airtime you use to earn business income, and the CRA’s streamer example deducts the non-personal part of the Internet connection.
- A home studio. A share of home costs, if the space meets one of the CRA’s two business-use-of-home conditions. It cannot create or increase a business loss. Our home office guide has the calculation.
- Travel to shoot. Fares, hotels and meals on trips to create content are travel expenses, business part only, with meals at 50%. See our business travel guide.
- Accounting fees. Fees for outside professional advice, including accounting, are deductible on line 8860.
What Are Typical Expense Ratios for an Instagram Creator?
No one publishes an expense ratio for Instagram accounts. The closest real figures are Statistics Canada’s Financial Performance Data, built from the T1 and T2 tax returns of small businesses with $30,000 to $5 million of revenue, as captured by the CRA. Innovation, Science and Economic Development Canada publishes them by industry. The group that holds 711512 is independent artists, writers and performers, 15,938 businesses in 2024:
Independent artists, writers and performers
- Total expenses: 53.6% of revenue on average
- Middle half of businesses: 32% to 54%
- Most profitable quarter: 11.6%
- Average net profit: 46.4%
Average share of revenue
- Labour and commissions: 13.9%
- Purchases, materials and sub-contracts: 10.2%
- Professional and business fees: 3.8%
- Advertising and promotion: 2.2%, equipment write-off: 2.1%
Solo creator or small team
- Working alone with a phone and a ring light: lower costs are normal
- Paying photographers, editors or a manager: higher in the range
- Not a CRA limit: you claim what you actually spent
The middle half is the two middle quarters of businesses ranked by profit margin, and ISED rates the total expenses figure as good. These are averages, not a CRA rule or a limit on what you can claim. We use them to sense-check a year: when an account’s costs sit far outside the range, we look at why before the return is filed. Our YouTube post also shows the video production group.
When Does an Instagram Creator Need a GST/HST Number?
The CRA says that online content published by influencers on platforms is generally a taxable supply. Under its page on when to register for the GST/HST, you have to register once your taxable revenue passes $30,000 in a single calendar quarter or over four consecutive calendar quarters. For a sole proprietor that total is revenue before expenses from worldwide taxable supplies, including zero-rated ones, so brand deals with foreign companies count toward the $30,000.
Once registered, you charge the GST/HST where it applies and claim input tax credits for the GST/HST you pay on business costs. Guide RC4022 lists advertising services to a non-resident person that is not registered under the normal GST/HST registration regime among the services that may be zero-rated. Whether that fits a sponsored post for a US brand depends on the brand and how the deal is set up, so we check each brand when we register you. See our guide to the $30,000 small supplier rule.
How Is Income From US Brands Reported?
Many brand deals are with companies in the United States. The Canadian side is set by the CRA’s foreign tax credit page:
- Report it in Canadian dollars. Use the Bank of Canada exchange rate for the day the amount arose, or the average annual rate when you were paid at different times during the year.
- If US tax was withheld, report the full amount and claim the foreign tax credit on Form T2209 for the federal credit (line 40500) and Form T2036 for the provincial one. For each country it is generally the lesser of the foreign tax you paid and the Canadian tax on your net income from that country. A tax treaty may affect whether you are eligible.
- Keep the contract, the invoice and the payment record, and any statement that shows US tax withheld.
In our reading, a US brand or platform may ask you for a US tax form before it pays you (for an individual outside the United States, usually Form W-8BEN). The US rules and the tax treaty decide whether tax is withheld and how much, so we do not quote a rate here.
What Records Should an Instagram Creator Keep?
The CRA’s influencer page asks you to keep track of your income and expenses, including sales to buyers in Canada and other countries. For an Instagram account, that means:
- Brand deals: contracts, invoices and proof of payment, with the currency.
- Affiliate and code reports: the commission statements from each program.
- Platform payouts: each payout statement.
- Gifts: a list of products and trips from brands, with the date and fair market value.
- Equipment: receipts with purchase dates, and how you set the business share of your phone.
- Props and wardrobe: receipts and a note of which items are used only for content.
- GST/HST: the tax you charged and the tax shown on your receipts.
How Can We Help Instagram Creators?
We prepare your personal return with Form T2125, including brand deals, gifted products and foreign income in Canadian dollars, and your capital cost allowance. We keep your books through the year, register you for the GST/HST when you need it and file the returns, and if your account is incorporated, we prepare the corporation’s T2 return. Fees are fixed and quoted up front.
If you want your account’s numbers set up the right way before tax season, see our packages.
Frequently Asked Questions
Is Instagram income taxable in Canada?
Yes. If you live in Canada, sponsored posts, brand deals, affiliate commissions, money Instagram pays you and the value of gifted products and trips are all income, including money from brands outside Canada. Most creators report it as business income on Form T2125.
Do I pay tax on products that brands send me?
Yes. The CRA counts non-monetary income, such as products and trips you receive from brands, at fair market value. In the CRA example of a travel creator on Instagram, a free vacation valued at $5,000 is included in her income. Keep a list of what you received, when, and what it was worth.
Can I deduct the clothes and makeup I wear in my posts?
In our reading, generally not when you can also wear or use them in daily life. The CRA does not allow personal expenses, and wearing something on camera does not by itself make it a business cost. Props bought only to create content are business costs, and items used only for content are looked at one by one.
Which industry code does an Instagram influencer use?
There is no code named for influencers. The closest are 711512, Independent actors, comedians and performers, for a creator whose main work is being on camera and promoting brands, and 512110, Motion picture and video production, for a creator whose main product is video. If you file electronically, use the codes in your tax software. We pick the code with you.
When does an Instagram creator have to register for the GST/HST?
When taxable revenue passes $30,000 in one calendar quarter or over four consecutive calendar quarters. Revenue from foreign brands and platforms counts toward the $30,000, including zero-rated revenue.
Reviewed on 5 November 2026. The income, expense, capital cost allowance, GST/HST and foreign tax credit rules and the examples marked as the CRA’s are from the Canada Revenue Agency, the industry codes from Statistics Canada, and the expense ratios from Statistics Canada data published by Innovation, Science and Economic Development Canada, linked beside each fact and listed below. Points marked as our reading are our interpretation, not CRA wording.
Content Creators
Accounting for influencers, YouTubers and streamers: income from every platform, deductions and the GST/HST
T1 Personal Tax
Personal tax returns, including the business statement with your brand deals, gifted products and CCA
Bookkeeping
Monthly bookkeeping with brand payments, affiliate payouts, equipment and GST/HST input tax credits recorded the right way
Sources
- Canada Revenue Agency, Social media influencers (Taxes and the platform economy) (page dated 2025-01-31, checked 5 November 2026)
- Canada Revenue Agency, Understanding your tax obligations (Taxes and the platform economy) (page dated 2025-01-31, checked 5 November 2026)
- Canada Revenue Agency, Industry codes (page dated 2026-08-31, checked 5 November 2026)
- Statistics Canada, NAICS Canada 2022 Version 1.0, 711512 Independent actors, comedians and performers (page dated 2024-10-23, checked 5 November 2026)
- Statistics Canada, NAICS Canada 2022 Version 1.0, 512110 Motion picture and video production (page dated 2024-10-23, checked 5 November 2026)
- Innovation, Science and Economic Development Canada, Financial performance, Independent artists, writers and performers (7115), data year 2024 (page dated 2026-09-08, checked 5 November 2026)
- Statistics Canada, Financial Performance Data (FPD), survey description (page dated 2026-01-19, checked 5 November 2026)
- Canada Revenue Agency, Guide T4002, Chapter 3, Expenses (page dated 2026-04-16, checked 5 November 2026)
- Canada Revenue Agency, Other business expenses (page dated 2026-08-31, checked 5 November 2026)
- Canada Revenue Agency, Classes of depreciable property (page dated 2026-08-31, checked 5 November 2026)
- Canada Revenue Agency, Accelerated investment incentive (page dated 2025-07-21, checked 5 November 2026)
- Canada Revenue Agency, Business-use-of-home expenses (page dated 2026-08-31, checked 5 November 2026)
- Canada Revenue Agency, Line 9220, Utilities (page dated 2026-08-31, checked 5 November 2026)
- Canada Revenue Agency, When to register for and start charging the GST/HST (page dated 2026-06-16, checked 5 November 2026)
- Canada Revenue Agency, Guide RC4022, General Information for GST/HST Registrants (page dated 2026-01-07, checked 5 November 2026)
- Canada Revenue Agency, Federal foreign tax credit, line 40500 (page dated 2026-08-14, checked 5 November 2026)
