What a TikTok creator in Canada reports and deducts, from creator payouts and LIVE gifts to the phone and lights you film with, with every rule linked to its government source. The third post in our content creator series, after YouTube creators and Instagram creators.
For most Canadian creators, TikTok income is business income: money TikTok pays you from its creator programs, LIVE gifts and tips from viewers, brand deals, affiliate commissions and the fair market value of products brands send you all go on Form T2125, including money from outside Canada. You can deduct reasonable costs you incur to earn it, business part only: your phone, lights and microphone through capital cost allowance, editing apps, paid promotion, editors and travel to film. Personal expenses are not deductible. 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 TikTok Income Do You Have to Report?
The CRA’s page for social media influencers names TikTok and lists the ways creators earn money. For a TikTok account that usually means:
- Creator program payouts, the money TikTok pays you for your videos. In the CRA’s own examples, money a platform pays a creator for subscriptions and ads is income.
- LIVE gifts and tips that viewers send you. The CRA lists tips, gifts and donations from followers and audiences.
- Brand deals, which the CRA lists as advertising for other businesses, collaborations, partnerships and sponsorships.
- Affiliate and shop commissions on products you promote, the referral codes on the CRA’s list.
- 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. The CRA’s platform economy page adds that you contribute to the Canada Pension Plan if you are over 18 and earn more than $3,500 a year, and that self-employed creators pay both the employee and employer parts on Schedule 8.
The CRA’s own streaming example is close to a TikTok LIVE. Saddaf, a gamer on Twitch and YouTube, receives $1,000 as their share of bits, a virtual good viewers buy and send, and $400 that fans send to a payment account. The CRA says both go in Saddaf’s income, next to subscriptions, ad revenue and $900 of free sporting goods. In our reading, the money you receive from LIVE gifts is the same kind of income. Keep each payout statement.
Which Industry Code Does a TikTok Creator Use?
Form T2125 asks for an industry code for your main business activity. Statistics Canada’s NAICS list has no code named for TikTok or influencers. Two codes come up:
- 711512, Independent actors, comedians and performers, for freelancers who perform in artistic and cultural productions. Its examples include independent comedians and an independent celebrity spokesperson. It fits a creator whose main work is performing on camera: comedy, LIVE streams and brand promotion.
- 512110, Motion picture and video production, for producing videos and commercials. It fits a creator whose main product is the video itself, such as clips made for brands to post.
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.
TikTok 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 a TikTok account. The GST/HST row applies only if you are registered for the GST/HST.
| Cost | What a sole proprietor can claim |
|---|---|
| Phone you film and post with | CCA, Class 50 at 55%, business part |
| LED lights, tripod and microphone | 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 videos | Deductible; the Canadian content rules do not apply to foreign websites |
| 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 film 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, the software row and the props and clothing rows are our reading, explained in the next sections.
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How Do You Deduct a Phone, Lights and a Microphone?
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, lights, a camera or audio gear that cost $500 or more belong here.
- Class 12, 100%: tools that cost less than $500, and software that is not systems software. In our reading, an LED panel, a tripod or a clip-on microphone 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 the phone you film on 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 $1,400, used 80% for your account, an LED panel for $160 and a tripod for $90, both used only for content.
- Phone, Class 50 at 55%: $770, business part $616, or $1,120 if the proposed 100% first-year deduction applies.
- LED panel and tripod as small tools in Class 12: $250.
- First-year CCA: $866, or $1,370 with the proposed rule.
The numbers are our example; the rates are the CRA’s.
What About Clothing, Makeup and Props?
The CRA has no page on clothing, makeup or props used on camera. The general rule in Guide T4002 applies: no personal expenses, business part only. In our reading, props and set pieces you buy only to create content are business costs, while clothing, makeup and haircuts you can also use in daily life stay personal, even when they appear in a video. Costumes kept only for skits are the grey area, and we look at them one by one with the receipt. Our Instagram creators guide goes through this in more detail.
What Else Can a TikTok Creator Deduct?
- Editing apps and subscriptions. In our reading, editing, music and design subscriptions you pay monthly or yearly are a cost of that year, business part only. Software you buy outright is Class 12 on the CRA’s class list.
- Editors and freelancers. Reasonable fees you pay video editors, designers or a manager 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. Promoting your videos is advertising, 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 film. 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 a TikTok Creator?
No one publishes an expense ratio for TikTok 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%
Phone-first creators
- Filming alone on a phone with one light: lower costs are normal
- Paying an editor 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 a TikTok 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 payouts and brand deals from outside Canada count toward the $30,000.
Not every amount is a taxable supply. In the CRA’s streamer example, a $50,000 tournament prize is left out of the $30,000 test, so we sort your income by type before we decide. 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, so we check foreign brands one by one. See our guide to the $30,000 small supplier rule.
How Is Income From Outside Canada Reported?
Payouts and brand deals often come from companies outside Canada. 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 foreign 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. A tax treaty may affect whether you are eligible.
- Keep the payout statement or invoice and the payment record, with the currency.
What Records Should a TikTok 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 a TikTok account, that means:
- Platform payouts: each payout statement, with the currency.
- LIVE gifts: the statements that show what you were paid for them.
- Brand deals: contracts, invoices and proof of payment.
- Affiliate and shop commissions: the commission statements from each program.
- Gifts from brands: a list of products and trips, with the date and fair market value.
- Equipment: receipts with purchase dates, and how you set the business share of your phone.
- GST/HST: the tax you charged and the tax shown on your receipts.
How Can We Help TikTok Creators?
We prepare your personal return with Form T2125, including creator payouts, LIVE gifts, brand deals 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 TikTok income taxable in Canada?
Yes. If you live in Canada, money TikTok pays you, LIVE gifts and tips, brand deals, affiliate commissions and the value of products brands send you are all income, including money from outside Canada. Most creators report it as business income on Form T2125.
Are TikTok LIVE gifts taxable?
In our reading, yes. The CRA lists tips, gifts and donations from followers as creator income, and in its streaming example the money a gamer receives from virtual bits that viewers send is included in income. Report what you are paid for LIVE gifts and keep each payout statement.
Can I deduct my phone if I film TikToks on it?
Yes, the business part. A phone is not deducted in the year you buy it: you claim capital cost allowance. We put smartphones in Class 50 at 55%, and new Class 50 property may get a 100% first-year deduction under proposed changes. If you also use the phone personally, claim only the business share.
Which industry code does a TikTok creator use?
There is no code named for TikTok. The closest are 711512, Independent actors, comedians and performers, for a creator whose main work is performing on camera, 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 a TikTok 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 outside Canada counts toward the $30,000, including zero-rated revenue.
Reviewed on 6 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 creator payouts, brand deals and CCA
Bookkeeping
Monthly bookkeeping with platform payouts, brand payments, 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 6 November 2026)
- Canada Revenue Agency, Understanding your tax obligations (Taxes and the platform economy) (page dated 2025-01-31, checked 6 November 2026)
- Canada Revenue Agency, Industry codes (page dated 2026-08-31, checked 6 November 2026)
- Statistics Canada, NAICS Canada 2022 Version 1.0, 711512 Independent actors, comedians and performers (page dated 2024-10-23, checked 6 November 2026)
- Statistics Canada, NAICS Canada 2022 Version 1.0, 512110 Motion picture and video production (page dated 2024-10-23, checked 6 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 6 November 2026)
- Statistics Canada, Financial Performance Data (FPD), survey description (page dated 2026-01-19, checked 6 November 2026)
- Canada Revenue Agency, Guide T4002, Chapter 3, Expenses (page dated 2026-04-16, checked 6 November 2026)
- Canada Revenue Agency, Other business expenses (page dated 2026-08-31, checked 6 November 2026)
- Canada Revenue Agency, Classes of depreciable property (page dated 2026-08-31, checked 6 November 2026)
- Canada Revenue Agency, Accelerated investment incentive (page dated 2025-07-21, checked 6 November 2026)
- Canada Revenue Agency, Business-use-of-home expenses (page dated 2026-08-31, checked 6 November 2026)
- Canada Revenue Agency, Line 9220, Utilities (page dated 2026-08-31, checked 6 November 2026)
- Canada Revenue Agency, When to register for and start charging the GST/HST (page dated 2026-06-16, checked 6 November 2026)
- Canada Revenue Agency, Guide RC4022, General Information for GST/HST Registrants (page dated 2026-01-07, checked 6 November 2026)
- Canada Revenue Agency, Federal foreign tax credit, line 40500 (page dated 2026-08-14, checked 6 November 2026)
