Tax guide for independent tutors in Canada — income reporting, home office deductions, HST rules, and T2125 filing.
Independent tutors — whether in-person or online — are self-employed. All tutoring fees, session payments, and course materials sold are self-employment income reported on Form T2125. This applies whether you tutor one student or run a multi-student operation.
Parents paying tutors usually do not issue T4As. Keep your own records of all payments received by student, date, and amount. E-transfer histories and receipts are your primary documentation.
Independent tutoring services are generally taxable supplies. Register for HST once total taxable revenues exceed $30,000. Many part-time tutors stay well under this threshold. Full-time tutors or those running tutoring centres will likely need to register.
Once registered, charge HST on sessions and claim ITCs on business expenses (materials, software, home office utilities, etc.).
| Expense | Notes |
|---|---|
| Home office | If you tutor from home — workspace area ÷ total home area |
| Tutoring materials | Textbooks, workbooks, practice tests |
| Whiteboard / teaching tools | 100% if used exclusively for tutoring |
| Computer / tablet | Business-use % as CCA |
| Video conferencing software | Zoom, Google Meet subscriptions |
| Online learning platforms | Khan Academy premium, tutoring platforms |
| Platform fees | Wyzant, Tutor.com, Varsity Tutors commissions |
| Phone | Business-use % for scheduling and communication |
| Internet | Business-use % for online tutoring sessions |
| Advertising | Kijiji, Facebook, flyers — 100% |
| Professional development | Courses, certifications relevant to subject matter |
| Vehicle mileage | If you travel to students' homes: 70¢/km (first 5,000), 64¢/km after |
| Accounting fees | 100% deductible |
Online tutors may have students across Canada or internationally. Canadian students: charge HST (once registered). US or foreign students: services are zero-rated (no HST charged, but ITCs still claimable). Keep records of where your students are located.
Online tutoring also often means you can deduct a higher percentage of your internet plan and more of your home office, since your workspace is central to the business.
Business type: "Educational Services / Private Tutoring." NAICS code: 611691. Report all gross fees, then deduct business expenses. Net income flows to T1 line 13500. CPP contributions (11.9% combined) apply on net self-employment income. If taxes owing exceed $3,000, quarterly installments are required.
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Get KOHO Free — Use Code 45ET55JSYAInformational only. Not tax or legal advice. Consult a CPA for your specific situation.