What is Form T2125?

Form T2125 — Statement of Business or Professional Activities — is the CRA form Canadian self-employed individuals and sole proprietors attach to their T1 personal income tax return. It reports your business income and expenses, calculates your net income (or loss), and identifies which deductions you're entitled to claim.

You need to file a T2125 if you earned any self-employment income during the year, including freelance work, consulting fees, side-business revenue, or professional income not reported on a T4 slip.

What is a NAICS Code?

NAICS stands for the North American Industry Classification System. It's a standardized six-digit code that classifies your business activity into a specific industry. The CRA requires you to enter a NAICS code on your T2125 so they can compare your reported income and expense ratios against industry norms.

Canada uses the NAICS Canada 2022 edition, which contains over 900 industries across 20 sectors — from agriculture and manufacturing to professional services and the arts.

Tip: Your NAICS code affects which expense categories are standard for your industry. If your deduction ratios look unusual compared to peers in the same code, it can increase the likelihood of a CRA review. Choosing the most accurate code for your work is the best practice.

How to Read a NAICS Code

The six digits are hierarchical:

  • First 2 digits — Sector (e.g., 54 = Professional, Scientific and Technical Services)
  • First 3 digits — Subsector
  • First 4 digits — Industry group
  • First 5 digits — NAICS industry
  • All 6 digits — National industry — the most specific level, used on T2125

How to Find Your Code

Use the search table below. Search by keyword (e.g., "software", "photography", "consultant") or by the six-digit code if you already know it. Select the code that best describes your primary business activity. If you have multiple activities, use the code for the one that generates the most income.

If you're unsure, Statistics Canada's NAICS search page, the Government of Canada's official NAICS Canada 2022 dataset, and the NAICS Canada 2022 PDF guide are helpful references.

Common Codes for Self-Employed Professionals

  • 541110 — Offices of Lawyers
  • 541211 — Offices of Certified Public Accountants
  • 541310 — Architectural Services
  • 541511 — Custom Computer Programming Services
  • 541512 — Computer Systems Design Services
  • 541611 — Administrative Management and General Management Consulting Services
  • 541810 — Advertising Agencies
  • 541922 — Commercial Photography
  • 711510 — Independent Artists, Writers and Performers
  • 722511 — Full-Service Restaurants