Taxes
Self-Employed Tax Calculator Canada 2026
Estimate net income after federal tax, provincial tax, and self-employed CPP contributions — with HST threshold and quarterly installment guidance.
Updated May 26, 2026
MoneyMapCanada Editorial Team
Editorial review and fact-check team
The MoneyMapCanada Editorial Team reviews every article and calculator for factual accuracy, source integrity, and consistency with current Canadian government guidance. Each piece is cross-checked against CRA publications, FCAC consumer guidance, CMHC rules, or CDIC coverage definitions before publication. The team also monitors for rate and rule changes and flags outdated content for revision.
Self-employment inputs
Estimated take-home pay
$44,463
$6,384/quarter estimated CRA tax instalment.
Your revenue of $85,000 exceeds the $30,000 GST/HST registration threshold — you are required to collect and remit GST/HST.
CRA requires quarterly tax instalments when annual net tax exceeds $3,000. Set aside funds each quarter.
Net income
$70,000
Total tax
$17,802
Self-employed CPP
$7,735
Take-home
$44,463
Income allocation
Assumptions used
| Gross revenue | $85,000 |
|---|---|
| Business expenses | $15,000 |
| Net income | $70,000 |
| Province | Ontario |
| Self-employed CPP rate | 11.9% (employee + employer share) |
| CPP deduction | $3,868 (half of CPP is deductible) |
How this calculator works↓
| CPP | Self-employed pay 11.9% on net income between $3,500 and $68,500; half is deductible against taxable income |
|---|---|
| Federal tax | Simplified bracket estimate — 15% up to $56k, 20.5% to $110k, 26% above |
| Provincial tax | Simplified flat-rate estimate for Ontario |
| HST threshold | Must register for GST/HST once annual revenue exceeds $30,000 in a 12-month period |
| Note | Does not model RRSP deductions, business-use-of-home carryforward, CCA, or provincial surtaxes |
This calculator is best for
- ✓Freelancers, contractors, and sole proprietors estimating Canadian self-employment taxes
- ✓Anyone calculating self-employed CPP contributions and quarterly instalments
Not suitable for
- ✕Incorporated businesses — pay corporate tax rates
- ✕Quebec residents — distinct QC tax and QPP rules apply
What if scenarios
+$10k more expenses
$41,912
Higher deductions lower tax and CPP
GST/HST on revenue
$11,050 collectible
13.00% Ontario rate
Quarterly instalment
$6,384
Due March, June, September, December
Max RRSP contribution
$12,600
18% of net income up to $32,490
Related guides and tools
Note: This calculator is designed to be conservative and may show slightly higher costs or lower returns than promotional tools. Use it for planning purposes only — not as a commitment from any lender or institution.
Calculator method
How to use this result before making a decision
Run a conservative scenario first, then test a best-case and stress-case version. A calculator is most useful when it shows whether the decision survives higher costs, slower payoff, lower returns, or a tighter monthly budget.
Methodology and limits
- Inputs are educational estimates and may use simplified formulas or rounded assumptions.
- Actual results can change because of tax rules, lender terms, fees, timing, compounding, province, credit profile, or provider eligibility.
- Use the output as a planning checkpoint, then confirm final numbers with official sources, your financial institution, employer, insurer, lender, or a qualified professional.
How is self-employed tax calculated in Canada?
Self-employed tax in Canada includes federal income tax, provincial income tax, and self-employed CPP contributions. Unlike employees, the self-employed pay both the employee and employer CPP share (11.9% on net business income between $3,500 and $68,500). You can deduct eligible business expenses from gross revenue before calculating tax.
How much CPP does a self-employed person pay?
Self-employed Canadians pay 11.9% CPP on net business income between $3,500 and $68,500 — double the 5.95% employee rate, because there is no employer to split the contribution. Maximum self-employed CPP contribution in 2026 is approximately $7,735. Half of the CPP paid is deductible as a business expense.
Do self-employed people have to pay HST in Canada?
Self-employed Canadians must register for GST/HST once annual revenue exceeds $30,000 in a 12-month period. You collect the applicable rate (5% GST or up to 15% HST) from clients and remit it to CRA minus input tax credits. Businesses below $30,000 are 'small suppliers' and registration is optional.
How do I estimate quarterly tax installments as self-employed?
CRA requires tax installments if you owe more than $3,000 in net tax in the current year and either of the two preceding years. Divide your expected annual tax (income tax + self-employed CPP) by 4 to estimate quarterly payments, due in March, June, September, and December.
What business expenses can self-employed Canadians deduct?
Common self-employed deductions include home office expenses (business-use percentage of rent/mortgage interest, utilities), vehicle expenses (business km ÷ total km), professional fees, advertising, equipment, phone, and office supplies. Keep all receipts — deductions reduce net income before tax and CPP are calculated.
Sources used
Official references checked for this page
Updated May 26, 2026
Each claim on this page is traceable to one of the government authorities or regulators below. Rates, tax rules, eligibility requirements, and product terms can change — verify current details directly with the linked source before making any financial decision.
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