Self-Employed Tax Calculator

Enter your net self-employment income (after expenses) and province to see the income tax plus both halves of CPP you should be setting aside through the year. Unlike an employee, nobody withholds this for you — and you pay the employer share of CPP too. Rates are current for the 2025 tax year.

2025 tax year rates All 13 provinces Updates as you type

Your business income

$

How it works. Self-employed people pay both the employee and employer halves of CPP on their net business income, but the employer half is deductible — so the calculator computes CPP first, deducts that half, then applies the federal and provincial brackets to what remains. EI is not included because it is optional for the self-employed.

Set aside for tax and CPP

$0

0% of your net income goes to tax and CPP

You keep $0 Income tax $0 CPP $0
Income tax (federal + provincial)$0
CPP — both halves$0
After-tax income$0

The deductible employer half of CPP is approximated here rather than solved exactly. No EI is included — the self-employed pay it only if they opt in for special benefits — and GST/HST is a separate obligation once you are registered.

An estimate is a starting point. Get your real number.

This calculator uses published rates. Your actual position depends on the credits, deductions and structure behind your numbers.

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Self Employed Tax Calculator Pricing and Fees

An employee and their employer each pay half of CPP; when you work for yourself, you are both parties, so you pay both halves — 5.95% twice on pensionable earnings up to the first ceiling, plus both sides of the CPP2 band above it. The consolation is that the employer half is deductible against income, which this calculator builds in. On top of CPP sits ordinary federal and provincial income tax on your net T2125 profit, with nothing withheld at source: the set-aside habit is the whole game.

Deadlines split too. Self-employed returns are due June 15, but any balance owing is due April 30 — interest starts running from May 1 regardless of the later filing date. And once your net tax owing passes $3,000 in back-to-back years, CRA expects quarterly instalments rather than one spring payment.

What this calculator does not cover

It starts from net income, so it does not optimize your expenses — home-office costs, vehicle use and capital purchases can move the number materially before tax is ever calculated. Vehicle claims have their own math in the mileage allowance calculator. GST/HST is also outside the estimate: once your revenue passes the small-supplier threshold you must register and remit, which the registration threshold checker tests for you. For a return that captures every deduction you are entitled to, see our personal tax filing services.

Employee vs self-employed, same $80,000
ItemEmployeeSelf-employed
CPP One halfBoth halves
EI RequiredOptional
Tax withheld Each chequeYou set aside
Filing deadline April 30June 15 (pay by April 30)

Rates reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Federal and provincial rates change annually, and this tool is an estimate for planning rather than tax advice. Confirm current figures before relying on them for a filing.

Frequently asked questions

Run your expected net income above for the precise figure — as a rule of thumb, 25% to 35% of net income covers income tax and both CPP halves at middle incomes, more as income rises. Setting aside a fixed percentage of every invoice into a separate account is the simplest system that actually survives a busy year.
CPP is designed as a matched contribution: employees pay half and employers pay half. Working for yourself makes you both, so you remit both halves on your net business income. The employer half is deductible against income, which softens the cost, and both halves build the same CPP retirement entitlement as an employee earns.
No. EI premiums are not required on self-employment income. You can opt in voluntarily to access special benefits — maternity, parental, sickness and caregiving — but once you claim a benefit, the opt-in becomes effectively permanent for as long as you are self-employed. Regular unemployment benefits are not available either way.
The return is due June 15, but the money is due April 30 — a split that catches many people out. Interest accrues on any unpaid balance from May 1 even though the return itself is not yet late. Practically, that means having the numbers done by April, not June.
Once your net tax owing is more than $3,000 in the current year and either of the two previous years, CRA expects quarterly instalments due March 15, June 15, September 15 and December 15. CRA mails reminder notices with suggested amounts; paying those amounts as billed protects you from instalment interest even if they turn out to be too low.
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