Self-Employed Tax Calculator Canada 2026

Calculate Self-Employed Tax

Gross Business Revenue ($) Business Expenses ($) RRSP Contribution ($) Province

Self-Employed Tax: What's Different

Key Warning: Self-employed Canadians must set aside 25–35% of net income for taxes and CPP. Many new freelancers are caught off guard by large tax bills.

You Pay Both Sides of CPP

Employees pay 5.95% CPP and their employer pays a matching 5.95%. As a self-employed person, you pay BOTH sides — 11.90% on net earnings between $3,500 and $73,200. The maximum self-employed CPP contribution in 2026 is approximately $7,734 annually. However, you can deduct the employer half (5.95%) on your tax return, and the employee half generates a 15% federal tax credit.

Quarterly Tax Instalments

If you owe more than $3,000 in taxes (federal) for 2026 AND either 2024 or 2025, you must make quarterly tax instalment payments. Instalments are due March 15, June 15, September 15, and December 15. Missing or underpaying instalments triggers instalment interest charges from CRA.

GST/HST Registration (Mandatory at $30,000+)

Once your annual revenue exceeds $30,000, you must register for GST/HST and collect tax from clients. For most provinces this is 5% GST or 13–15% HST. You remit collected tax to CRA quarterly or annually, but you can also claim Input Tax Credits (ITCs) on GST/HST you paid on business expenses.

Home Office Deduction

Self-employed Canadians can deduct a percentage of home expenses (rent/mortgage interest, property tax, utilities, internet) based on the portion of the home used exclusively for business. A dedicated office that's 10% of your home's square footage allows a 10% deduction of home costs. This is more generous than the employee flat-rate method.

Vehicle Expenses

If you use your car for business, keep a mileage log. You can deduct the business percentage of actual vehicle expenses: gas, insurance, maintenance, loan interest (limited), and CCA (depreciation). Alternatively, use the simplified logbook method after establishing the business-use percentage in a full base year.