Self-employed tax calculator for Canada

Province or territoryWhere you lived on 31 December. It sets your provincial tax.

Net business income for the yearGross business income minus expenses (Form T2125, line 9946).CAD

Employment income from a jobA job uses up the CPP maximum first. Leave at 0 if you are only self-employed.CAD

You keep after tax and contributions

$45,397

Effective rate 24.3 %

CPP on business income (both shares)11.9 %−$6,724
Net income for tax$56,073
Federal tax14 %−$7,850
Federal basic personal amount and other credits+$2,695
Ontario tax9.15 %−$2,921
Ontario basic personal amount and other credits+$797
Ontario Health Premium−$600
Quarterly instalment if required$3,651

An estimate under the rules for the chosen year, for typical cases. It is not tax advice: check the result with the tax office or an adviser before you file.

How it is calculated

As a sole proprietor you pay both the employee and the employer share of CPP on your net business income. That is 11.9 % on earnings between $3,500 and the yearly maximum, plus 8 % CPP2 on the slice above it. In Quebec you pay QPP and a QPIP premium instead.

Half of your contributions, the enhanced part of the other half and all of CPP2 are deducted from income. Your business income is then added to any employment income and taxed with the federal brackets and those of your province. The federal rate on the first bracket is 14.5 % for 2025 and 14 % for 2026.

The result shows what the business adds to your tax bill: the tax with the business minus the tax on your job alone. If you owe more than $3,000 ($1,800 in Quebec) when you file, the CRA can ask you to pay by quarterly instalments on 15 March, 15 June, 15 September and 15 December.

You run an unincorporated business as a sole proprietor and are resident in the province you pick on 31 December.
Net business income is income minus deductible business expenses. The calculator does not work out expenses or capital cost allowance.
CPP is 11.9 % of net earnings between $3,500 and the YMPE ($71,300 in 2025, $74,600 in 2026) and CPP2 is 8 % up to the YAMPE ($81,200 in 2025, $85,000 in 2026). Employment income uses up the ceilings first.
In Quebec QPP is 12.8 % (2025) or 12.6 % (2026) and QPIP is 0.878 % (2025) or 0.764 % (2026) on business income.
Half of CPP or QPP plus the enhanced part of the other half and all of CPP2 are deducted from income. The base part of your own half gives a credit at the lowest rate.
Optional EI special benefits for the self-employed are not included.
Credits other than the basic personal amount, the Canada employment amount, contribution credits and the dividend tax credit are not included.
The Ontario and B.C. tax reductions and the Ontario LIFT credit (which needs job income) are included. Low-income reductions in other provinces, the Canada Workers Benefit and GST/HST are not.
The quarterly figure is a quarter of this year's tax and contributions on the business. You must pay instalments if your net tax owing is more than $3,000 ($1,800 in Quebec) this year and in either of the two previous years.

Questions

How much CPP do I pay if I am self-employed?

In 2026 you pay 11.9 % of net business income between $3,500 and $74,600, up to $8,460.90, plus 8 % on income from $74,600 to $85,000, up to $832. In 2025 the maximums were $8,068.20 and $792.

When is my tax return due if I am self-employed?

You have until 15 June to file. Any balance owing is still due by 30 April, so interest runs from then.

Do I have to pay EI as a self-employed person?

No. You can opt in to EI special benefits, such as maternity or sickness benefits, but it is voluntary.

Is this the same as the tax on a corporation?

No. This calculator is for an unincorporated business. A corporation pays its own corporate tax, and you pay personal tax only on salary or dividends you take out.

Sources

Now keep it on track Set the result as a budget in Spendee and see each month how much is left.

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