Should I pay a contractor in cash to save the tax?
Researched by the LokalMatch editorial team1 answer
A contractor quoted one price with an invoice and a lower one for cash, no paperwork.
Answers (1)
LokalMatch EditorialLokalMatch editorial
No, and the tax is the smallest thing you give up. The Canada Revenue Agency’s point — made with the Canadian Home Builders’ Association in the Get It In Writing campaign — is that a cash job with no paperwork leaves you with no warranty, no recourse for bad work, and exposure if someone is injured on your property.
Play out what the discount buys. The roof leaks in year two and there is no written warranty to enforce. Somebody falls off a ladder in your driveway and you are the one who can be sued. You go to sell and the buyer’s lawyer asks for permits and invoices that do not exist.
A contractor who is registered and invoicing properly charges GST or HST and gives you a receipt. That receipt is also the thing you need if you ever want to claim a renovation credit on your return.
Answers come from pros and are reviewed by LokalMatch before they’re published. They’re general information — for regulated or safety-critical work, have a licensed professional assess your situation.
Sources
Where the facts on this page come from.
Underground economy — Canada Revenue Agency (accessed September 21, 2026)
Renovating or rebuilding your home? Protect yourself by getting it in writing — Canada Revenue Agency (accessed September 21, 2026)