Self-Employed Tax Calculator
How much to set aside from self-employment income for income tax and both halves of CPP, per year and per month.
Want this number lower?
The Lower My Tax report takes these numbers, tests every legal way to cut the bill, and shows the saving of each in dollars, with what to do and by when.
The short version
- Enter your net self-employment profit, any other income, and your province. The calculator shows 2026 income tax, both halves of CPP, and the total to set aside.
- CPP for the self-employed is 11.9% of earnings between $3,500 and $74,600, plus 8% CPP2 up to $85,000, for 2026.
- Ontario example: $60,000 of profit means about $14,600 of income tax and CPP, roughly 24% of profit.
- Quarterly instalments are due if you owe more than $3,000 this year and in either of the two years before.
- Estimates only, with basic credits. Your actual return may differ.
How the Self-Employed Tax Calculator Works
It starts with your net profit (revenue minus business expenses, as on form T2125) and adds any other income you enter. It runs the total through the 2026 federal and provincial brackets, then adds CPP on the self-employment part: both the employee and employer shares. Part of that CPP is deducted from income and part becomes a credit, the same way CRA does it. The result is your estimated income tax, your CPP, and the combined amount to set aside.
The full explanation, with worked examples, is on how self-employment tax works.
Why Self-Employed People Get a Bigger Bill
An employee pays half the CPP and the employer pays the other half. When you work for yourself, you pay both. Nobody takes tax off your cheques either, so the whole bill arrives at once. A separate bank account and a fixed transfer from every payment is the cheapest way to avoid an April surprise.
Instalments and Deadlines
- Return due: June 15, 2027 for 2026, for you and your spouse.
- Balance due: April 30, 2027. Interest starts May 1; see paying CRA late.
- Instalments: March 15, June 15, September 15 and December 15, once your net tax owing passes $3,000 two years running.
Want a monthly set-aside number?
Tell the assistant your expected revenue, expenses, other income and province. It runs this calculator and turns the result into a monthly amount and an instalment schedule.
Lower the Number Legally
- Claim every legitimate business expense; each dollar cuts income tax and CPP. See T2125 explained.
- An RRSP contribution cuts income tax (not CPP).
- Over $30,000 in sales? GST/HST is a separate bill: use the GST/HST $30,000 test.
Get your GST/HST set up right the first time
The GST/HST SmartFile runs both $30,000 tests on your sales, compares the quick method with the regular method, and fills in form GST74 if the quick method wins.
Self-Employed Calculator Questions
How much should I set aside for taxes when self-employed?
Roughly 20% to 30% of profit in most provinces at incomes between $40,000 and $90,000, more at higher incomes, plus any GST/HST you collect. The calculator gives your figure.
Does the calculator include CPP?
Yes. It includes both halves of CPP on self-employment earnings for 2026, including CPP2, and applies the deduction and credit for CPP.
Does it include GST/HST?
No. GST/HST you collect is not income; it is held for CRA and remitted separately.
Is the self-employed tax calculator accurate?
It uses the 2026 federal and provincial rules with basic credits. Other credits and deductions on your return can change the result.
Estimates only, based on the 2026 rules as last checked; see our sources. CanadianTaxes.ai is not the Canada Revenue Agency and does not give tax advice.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.
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