Freelancers · contractors · sole proprietors
Self-Employed Tax Calculator
Income tax, CPP and what to put aside on your business income. Results update as you type.
Yours to keep
$57,874
$4,823 a month after tax and CPP
Net business income
$80,000
Income tax
$13,234
CPP (both halves)
$8,893
Total owing
$22,126
Set aside
28%
Quarterly instalment
$5,532
Marginal rate
35.3%
QPIP
$0
Put aside about 28% of every dollar of profit ($1,844 a month). You will likely need to pay instalments: about $5,532 on March 15, June 15, September 15 and December 15.
Your revenue is over $30,000, so you must register for and charge GST/HST (and QST in Quebec). Sales tax you collect isn’t income: keep it separate. Use the GST/HST calculator to price your invoices.
Self-Employed vs Employee in Ontario (2026)
Same income, no other income or deductions. Employees also pay EI; the self-employed pay both halves of CPP.
| Net income | Income tax | CPP | Self-employed keeps | Employee keeps | Set aside |
|---|---|---|---|---|---|
| $30,000 | $2,455 | $3,154 | $24,391 | $25,482 | 19% |
| $40,000 | $4,221 | $4,344 | $31,435 | $32,814 | 21% |
| $50,000 | $5,962 | $5,534 | $38,505 | $40,145 | 23% |
| $60,000 | $7,879 | $6,724 | $45,397 | $47,340 | 24% |
| $80,000 | $13,234 | $8,893 | $57,874 | $60,303 | 28% |
| $100,000 | $19,045 | $9,293 | $71,662 | $74,206 | 28% |
| $120,000 | $25,482 | $9,293 | $85,226 | $87,343 | 29% |
| $150,000 | $38,349 | $9,293 | $102,358 | $104,320 | 32% |
| $200,000 | $61,165 | $9,293 | $129,542 | $131,278 | 35% |
Tax on $80,000 of Self-Employment Income by Province (2026)
Lowest total first. Quebec includes QPP and QPIP.
| Province | Income tax | CPP/QPP + QPIP | Total owing | Set aside |
|---|---|---|---|---|
| Nunavut | $11,321 | $8,893 | $20,214 | 25% |
| Northwest Territories | $12,404 | $8,893 | $21,297 | 27% |
| British Columbia | $12,450 | $8,893 | $21,343 | 27% |
| Yukon | $12,615 | $8,893 | $21,508 | 27% |
| Alberta | $12,834 | $8,893 | $21,727 | 27% |
| Ontario | $13,234 | $8,893 | $22,126 | 28% |
| Saskatchewan | $14,427 | $8,893 | $23,319 | 29% |
| New Brunswick | $15,124 | $8,893 | $24,016 | 30% |
| Manitoba | $15,212 | $8,893 | $24,105 | 30% |
| Newfoundland and Labrador | $15,483 | $8,893 | $24,376 | 30% |
| Prince Edward Island | $15,920 | $8,893 | $24,813 | 31% |
| Quebec | $15,541 | $10,002 | $25,542 | 32% |
| Nova Scotia | $16,805 | $8,893 | $25,698 | 32% |
How Self-Employed Tax Works in Canada
If you freelance, run a sole proprietorship or earn gig income, you pay tax on your net business income: revenue minus business expenses, reported on form T2125 with your return. Nobody withholds tax for you, so the whole bill comes due at once unless you pay instalments.
You also pay both halves of CPP (or QPP in Quebec): the employee share and the share an employer would pay. On $80,000 of profit in Ontario that's $8,893, about twice what an employee pays. Half of it is deducted from your income and the other half earns a tax credit, which softens the blow. You don't pay EI unless you opt in for special benefits.
Your return is due June 15, 2027, but any balance owing is due April 30, 2027. If you owe more than $3,000 ($1,800 in Quebec) this year and in either of the last two years, the CRA asks for quarterly instalments on March 15, June 15, September 15 and December 15.
Common deductible expenses include supplies, software and subscriptions, a share of your phone and internet, professional fees, advertising, the business part of vehicle costs, and a home office if it's your main place of business. RRSP contributions lower the tax but not CPP.
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Frequently asked questions
How much should I set aside for taxes when self-employed in Canada?
About 25% to 35% of your profit, depending on income and province. On $80,000 of net business income in Ontario, set aside about 28% ($22,126 for the year) to cover income tax and CPP.
Do self-employed people pay more tax than employees?
Income tax is about the same, but the self-employed pay both halves of CPP, so the total is usually higher. In return they don't pay EI and can deduct business expenses.
When do I need to register for GST/HST?
Once your revenue passes $30,000 in a single quarter or over four consecutive quarters. From then on you charge GST/HST (and QST in Quebec) on your sales and can claim back the sales tax you pay on business expenses.
When are self-employed taxes due?
You must file by June 15, 2027, but any tax owing is due April 30, 2027. Interest starts on April 30, 2027 even though the return itself isn't late until June.
Do I pay CPP on self-employment income?
Yes, at double the employee rate on net self-employment earnings up to the yearly maximum, plus CPP2 above it. In 2026 that's up to $9,293 a year.
More for the self-employed
Figures for 2026. Sources: CRA: business income; CRA: instalments; CRA: GST/HST registration. Estimates for planning, not tax advice.
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