The Canada workers benefit: money low-income gig workers often miss
Self-employment income counts toward the Canada workers benefit, a refundable credit worth up to $1,633 for single people for 2025. Who qualifies and why you have to file to get it.
Self-employed people don't have a workplace pension, so an RRSP matters more. It's also one of the few legal ways to lower your tax bill after the year has ended.
Gig income creates RRSP room
The CRA counts net self-employment income as earned income for RRSP purposes. Your new room each year is 18% of last year's earned income, up to the annual maximum: $32,490 for 2025 and $33,810 for 2026.
Unused room carries forward forever. Your notice of assessment shows your exact limit.
A driver with $25,000 of net profit in 2025
| New RRSP room for 2026: 18% of $25,000 | $4,500 |
| Plus any unused room from earlier years | carried forward |
What a contribution saves
An RRSP deduction reduces your taxable income, so you save tax at your marginal rate. In Ontario, for 2026:
- Taxable income in the lowest bracket: roughly 19 cents saved per dollar contributed
- Taxable income in the second federal bracket: roughly 30 cents or more per dollar
If you have very little taxable income, an RRSP saves little. You can contribute now and hold off on deducting until a higher-income year.
It doesn't reduce CPP
CPP is calculated on your net business profit, before the RRSP deduction. An RRSP lowers income tax only. The only way to lower CPP is to claim every legitimate business expense.
The deadline
Contributions made in the first 60 days of the year can go on the previous year's return. For the 2026 tax year, the deadline is March 1, 2027.
RRSP or TFSA?
A TFSA (limit $7,000 for 2026) doesn't give you a deduction, but withdrawals are tax-free. When your income is low, a TFSA is often the better first choice. As your income grows, an RRSP deduction is worth more.
How MyGigLedger helps
MyGigLedger shows your net profit through the year, which is both your RRSP room for next year and the number that decides how much an RRSP contribution would save you.
Sources
This article is general information based on CRA guidance as of September 29, 2026. It isn't tax advice. Rules change, and your situation may differ, so check with the CRA or a tax professional before you file.