How to use the self-employed tax calculator
- 1 Enter your net self-employment profit after business expenses.
- 2 Choose your province or territory.
- 3 Add any RRSP or other deductions.
- 4 Read your total tax and CPP, take-home pay and quarterly instalments.
Worked example
$70,000 of net self-employment profit in Ontario with no RRSP deduction. CPP for both halves is 11.9% of $66,500 = $7,913.50. Federal tax is about $6,834 and Ontario tax about $3,550, so tax and CPP total $18,298.32 and you keep $51,701.68 (73.9%). Set aside about $4,575 each quarter for instalments.
Managing tax as self-employed
- Set aside 25-30% of each payment for tax and CPP.
- Keep receipts for every business expense.
- Pay instalments on March 15, June 15, September 15 and December 15.
- Register for GST/HST once sales pass $30,000.
Charge sales tax with the GST/HST Calculator, see CPP with the CPP and EI Calculator, and cut tax with the RRSP Calculator.
Features
Both CPP halves
11.9% to $74,600 plus 8% to $85,000, with the right deduction and credit.
Every province
2026 federal and provincial tax, including Quebec QPP.
Instalments
Quarterly amount if your tax owing is over $3,000.
When to use it
Freelancers and contractors
Set aside the right amount from each invoice. Add GST/HST on sales with the GST/HST Calculator.
Starting a business
See your take-home pay at different profit levels. Compare with a job using the Take-Home Pay Calculator.
Lowering tax
See the effect of RRSP contributions. Find your refund with the RRSP Calculator.
Planning instalments
Use the quarterly figure for March, June, September and December.
Related Tax tasks
Frequently asked questions
How much tax do self-employed people pay in Canada?
Income tax at the same rates as employees, plus both halves of CPP: 11.9% of earnings between $3,500 and $74,600 in 2026, plus 8% between $74,600 and $85,000. You do not pay EI unless you opt in.
Can I deduct CPP as self-employed?
Yes. You deduct the employer half and the enhanced part of the employee half from income, and claim a tax credit on the base employee part.
When do I need to pay instalments?
If your net tax owing is more than $3,000 ($1,800 in Quebec) in 2026 and in either 2025 or 2024. Instalments are due March 15, June 15, September 15 and December 15.
When is my tax return due?
June 15, 2027 for self-employed people, but any balance owing is due April 30, 2027. Interest is charged after April 30.
What is net self-employment profit?
Your business income minus allowable expenses such as supplies, home office, vehicle costs, phone and professional fees.
Do I need to charge GST/HST?
Once your taxable sales are over $30,000 in four consecutive quarters, you must register and charge GST/HST.
Can I get EI as self-employed?
Only if you register for the EI special benefits programme, which covers maternity, parental, sickness and caregiving benefits.
Should I incorporate?
Incorporating can defer tax if you leave profits in the company, but it adds costs. It is usually worth considering once profit is well above what you need to live on.
Does this include the QPIP in Quebec?
No. Self-employed Quebec residents also pay the Quebec Parental Insurance Plan, which is not included.
What expenses can I deduct as self-employed?
Reasonable costs to earn business income, such as supplies, advertising, professional fees, a share of home office and vehicle costs, phone and internet, and capital cost allowance on equipment. Keep receipts for six years.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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