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How to report Etsy income on your Canadian tax return
Not tax advice. This page summarizes public CRA and Etsy information as read on October 29, 2026. Rules, rates and fees change, and your situation may differ. Confirm with the CRA or a qualified tax professional before filing. Not affiliated with Etsy, Inc. or the Canada Revenue Agency. "CraftLedger default line" means how the CraftLedger app groups a fee; it is not CRA guidance.
CRA names Etsy among peer-to-peer platforms whose sales are self-employment income.
What CRA and Etsy say
- CRA says to report income from peer-to-peer sales (it names Etsy, eBay, Amazon and Kijiji as common platforms) as self-employment income by filing Form T2125, and that you must complete a separate T2125 for each business you operate. [Taxes in the platform economy]
- CRA lists 'costs from using a platform to sell products' as an example of an eligible expense for peer-to-peer sellers, along with marketing costs to increase traffic to your online store and the cost of materials such as wood, wool, paint and beads. [Taxes in the platform economy]
- Enter only the business part of expenses on Form T2125; personal expenses are not deductible. [Expenses]
- Under the cash method you can deduct only expenses you paid in the year; under the accrual method you deduct expenses you had during the year whether you paid them or not. [Expenses]
Etsy fee estimator for a Canadian shop
Rates: [Etsy Help] [Etsy Help] [Etsy Help]. Estimate only; your Etsy Payment account is the record.
Turn your Etsy CSVs into a T2125 summary in your browser
CraftLedger reads your Etsy Monthly Statement and Sold Orders CSVs locally (nothing uploaded), totals gross sales and fees, groups fees by T2125 line, and tracks the $30,000 small-supplier threshold by quarter. Free preview; CA$29 per tax year for the full export.
Try the free preview Get the tax-year pass (CA$29)Frequently asked questions
Is Etsy income taxable in Canada?
CRA says to report and pay tax on all income earned from peer-to-peer sales, naming platforms including Etsy, as self-employment income by filing Form T2125.
