Self-employed
Form T2125: Statement of Business or Professional Activities, part by part
What CRA Form T2125 is, who files one (and when you need more than one), how Part 3A business income works line by line, and the June 15 and April 30 dates, instalments and 2026 CPP that come with it.
Prepared by Aldro Accounting · Updated · Sources checked
The quick answer
Form T2125, Statement of Business or Professional Activities, is the Canada Revenue Agency form self-employed people use to report business or professional income and expenses and work out the gross and net income that go on their T1 return. You file a separate T2125 for each business or professional activity. For the 2026 tax year, a self-employed person's return is due June 15, 2027, but any balance owing is due April 30, 2027.
What Form T2125 is and who files it
The CRA says to use Form T2125 to report either business or professional income and expenses. It replaced two older forms, T2124, Statement of Business Activities, and T2032, Statement of Professional Activities.
The form helps you calculate your gross income and your net income or loss, which you need to complete your Federal Income Tax and Benefit Return.
One T2125 covers one activity. If you have both business and professional income, you complete a separate T2125 for each. You also complete a separate form for each business or professional activity if you have two or more of either.
Farming and fishing use their own statements, Form T2042 and Form T2121. Since 2018, one CRA guide, T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income, covers all types of self-employment.
The parts of the form
Guide T4002 walks through the T2125 in this order. The expense parts and capital cost allowance each have their own chapter in the guide.
Scroll sideways to see all columns.
| Part | What it covers |
|---|---|
| Part 1 | Identification |
| Part 2 | Internet business activities |
| Part 3 | Income: 3A for business income, 3B for professional income, then Part 3C, which starts at line 8000 |
| Part 4 | Net income (loss) before adjustments, after your expenses |
| Part 5 | Your net income (loss) |
| Part 8 | Details of other partners |
| Part 9 | Details of equity |
| Capital cost allowance | Guide T4002, chapter 4 |
Part 3A business income, line by line
Part 3A is only for business income. If you have professional income, you leave 3A blank and fill in Part 3B.
The CRA spells out what counts. Business income includes all money and non-money income from sharing economy activities such as ride-sharing and accommodation sharing, gig economy activities, peer-to-peer sales on online platforms, and social media influencer activities. An influencer's donations, gifts, tips and free products received in the course of the business all count.
Self-employed commission income is business income too, and goes in amount 3A. Note how much of 3A is commission, because your T1 asks for gross and net commission income separately.
Sales include everything you received or will receive, in money, services or goods with bartering or monetary value, such as credit units.
Scroll sideways to see all columns.
| Amount | What goes there |
|---|---|
| 3A | Gross sales, commissions or fees, including GST/HST collected or collectible |
| 3B | GST/HST, provincial sales tax, returns, allowances, discounts and GST/HST adjustments included in 3A |
| 3D | Quick Method users only: GST/HST collected or collectible on sales eligible for the Quick Method |
| 3E | Quick Method users only: eligible sales plus GST/HST, times the Quick Method remittance rate (the line 103 amount on your GST/HST return) |
| 3F | 3D minus 3E |
| 3G | Adjusted gross sales: 3C plus 3F. Carried to line 8000 in Part 3C |
Filing, payment and instalment dates
If you or your spouse or common-law partner carried on a business, your 2025 return was due June 15, 2026, and your 2026 return is due June 15, 2027. Any balance owing is due earlier: April 30, 2026 for 2025 and April 30, 2027 for 2026. If the business expenditures were mostly tax shelter investments, the return is due April 30 instead.
When a due date falls on a Saturday, Sunday or CRA-recognized public holiday, a return is on time if the CRA receives it or it is postmarked by the next business day. A payment is on time if received on the first business day after the due date.
You may have to pay instalments if your net tax owing is more than $3,000 ($1,800 in Quebec) for 2026 and in either 2025 or 2024. Instalments are due March 15, June 15, September 15 and December 15. Farmers and fishers have one due date, December 31.
Filing late costs 5% of the balance owing plus 1% for each full month late, up to 12 months. The repeated late-filing penalty is 10% plus 2% a month, up to 20 months. From October 1 to December 31, 2026, the CRA's prescribed interest rate on overdue taxes is 7%.
CPP on your T2125 net income
Self-employed people pay both halves of Canada Pension Plan contributions. For 2026 the full rate is 11.9%, based on net business income after expenses. You don't contribute on other income such as investment earnings.
For 2026, the maximum pensionable earnings are $74,600 and the basic exemption is $3,500, so the maximum contributory earnings are $71,100 and the maximum self-employed contribution is $8,460.90.
Second additional contributions (CPP2) apply to 2026 pensionable earnings between $74,600 and $85,000. The self-employed rate is 8% and the maximum is $832. The CPP doesn't operate in Quebec, where the Quebec Pension Plan provides similar benefits.
GST/HST and your T2125
Amounts 3A and 3B assume you know your GST/HST status. You have to register once you are no longer a small supplier, meaning your worldwide taxable supplies, with those of your associates, went over $30,000 in a single calendar quarter or over the last four consecutive calendar quarters. You then have 29 days from your effective date of registration to register.
Self-employed taxi drivers and commercial ride-sharing drivers have to register even if they are small suppliers.
Aldro's team prepares and files the T1 with T2125 for one flat yearly price that covers everything tax, and bookkeeping at $20 a month keeps the reconciled records each Part 3 and Part 4 line is built from.
Worked example
Say a sole proprietor's 2026 T2125 shows net business income of $80,000 after expenses. Base and first additional CPP: the contributory earnings are capped at $74,600 minus the $3,500 basic exemption, or $71,100, and 11.9% of $71,100 is $8,460.90, the 2026 self-employed maximum. CPP2: earnings between $74,600 and $85,000 attract 8%, so $80,000 minus $74,600 = $5,400, and 8% of $5,400 is $432. Total CPP on the return: $8,460.90 + $432 = $8,892.90. With net income of $40,000 instead, the CPP is 11.9% of ($40,000 minus $3,500) = 11.9% of $36,500 = $4,343.50, and no CPP2 applies. The 2026 return carrying this T2125 is due June 15, 2027, with any balance owing due April 30, 2027.
Common questions
What is Form T2125?
The CRA's Statement of Business or Professional Activities. Self-employed people use it to report business or professional income and expenses and to work out the gross and net income for their T1 return.
Do I need more than one T2125?
Yes, if you have both business and professional income, or two or more separate business or professional activities. Each gets its own form.
Where do gig workers and influencers report income on the T2125?
In Part 3A, amount 3A. The CRA includes all money and non-money income from ride-sharing, accommodation sharing, gig work, online peer-to-peer sales and influencer activities, plus self-employed commissions.
When is a return with a T2125 due?
June 15 of the following year for self-employed people and their spouses or common-law partners: June 15, 2027 for 2026. Any balance owing is due April 30, 2027.
Do I include GST/HST in my T2125 sales?
Amount 3A includes GST/HST collected or collectible. You then take it back out at amount 3B, along with provincial sales tax, returns, allowances and discounts.
The cheapest way to get your business taxes done: $399 flat.
Business tax filing is $399 CAD a year, and it covers everything tax for that year. US clients pay in USD. Canadian clients pay the same number in CAD.
How it works
- Tell us about your business. A two-minute form. No payment is collected through it.
- Get your next steps by email. We’ll email you the next steps within one business day. After you sign up we’ll send you a secure upload link for your documents.
- We file it. Our team prepares and files your return. Add bookkeeping for $20 a month if you want it.
What's included
$399 a year covers everything tax for that tax year.
- Every business return for the year. All the federal and state or provincial business returns you need for the tax year: Schedule C, 1065, 1120-S, 1120 and their state returns in the US; T2, or T1 with T2125, in Canada.
- More than one state. Multi-state returns are included at the same price.
- Your personal return. The owner’s personal return (1040 or T1) is included when it’s needed for the business income.
- Quebec. Quebec returns (CO-17, TP-1 and TP-80) are included. Our Quebec pages are in French, and our team works with you in English.
- Extensions and reminders. Extensions (Form 7004 or 4868) and quarterly estimate reminders are included.
- Information returns. 1099-NEC, T4/T4A and T5018 slips are included in the tax price.
- City and excise returns. City and local business tax returns, and state excise returns such as Washington B&O, are included in the yearly price.
- Franchise tax reports. State franchise tax reports, such as the Texas franchise tax report, are included.
- Estimated tax and instalment amounts. We work out your quarterly estimated tax payments in the US, or your CRA instalments in Canada, and tell you what to pay and when.
- Unfiled past years. Each unfiled prior-year return is $399 per tax year, the same flat price.
- Bookkeeping at $20 a month. Unlimited bank and card accounts, monthly reconciliation and monthly statements.
Basic inventory tracking for online stores, such as Shopify, is included. Full cost-of-goods reconciliation is quoted separately. Payroll processing and sales-tax filing aren’t included in bookkeeping. US clients pay in USD. Canadian clients pay the same number in CAD. Our team prepares and files your return.
Sources
- CRA: T2125 Statement of Business or Professional Activities · checked October 31, 2026
- CRA: Completing Form T2125 · checked October 31, 2026
- CRA: Part 3A, Business income · checked October 31, 2026
- CRA: Guide T4002 · checked October 31, 2026
- CRA: Guide T4002, table of contents · checked October 31, 2026
- CRA: Filing due dates for the tax return · checked October 31, 2026
- Canada.ca: 2026 tax deadlines for Canadian businesses and self-employed individuals · checked October 31, 2026
- CRA: Income tax instalments · checked October 31, 2026
- CRA: Late-filing penalty · checked October 31, 2026
- CRA: Prescribed interest rates, Q4 2026 · checked October 31, 2026
- Canada.ca: CPP contributions · checked October 31, 2026
- CRA: CPP contribution rates, maximums and exemptions · checked October 31, 2026
- CRA: When to register for and start charging the GST/HST · checked October 31, 2026
This guide explains general rules from the sources listed. It isn’t tax advice for your situation.