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Taxes · 2026 calculator

Self-employed tax calculator

Freelancer, contractor or sole proprietor? Enter your net business income and see the full bill — federal and provincial income tax plus both halves of CPP, the part employees never see. Every 2026 bracket verified at the government source.

Brackets & CPP verified at canada.ca / CRA · 2026-06-13

Your numbers

Pure self-employment income. Mixed T4 + business income? Use the income tax calculator.

After-tax income
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— average rate · — marginal
Federal income tax
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Provincial income tax
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CPP (both halves)
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Total tax + CPP
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Set aside
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Marginal tax rate
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The self-employment CPP cost

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Frequently asked questions

How much tax do I pay if I am self-employed in Canada?
You pay the same federal and provincial income tax as anyone else on your net business income, plus you cover both halves of CPP — the employee and the employer share. An employee splits CPP 50/50 with their boss; a self-employed person pays all of it, up to about $9,293 in 2026. You generally pay no EI. This calculator adds it all up by province.
Why is my CPP so high as a self-employed person?
Because you are both the employee and the employer, you pay the full CPP contribution — roughly 11.9% on earnings between $3,500 and the $74,600 ceiling, plus 8% on the next band to $85,000 (CPP2). An employee pays half of that and their employer pays the other half. The good news: about half of your CPP is tax-deductible, which softens the blow — this calculator factors that in.
What can I deduct to lower my self-employment tax?
Net business income is what is left after legitimate business expenses (home-office, vehicle, supplies, capital-cost allowance, professional fees), so enter your income after those. On top of that, an RRSP contribution reduces taxable income further, and roughly half of your CPP contribution is deductible. See when an accountant is worth it for more complex situations.
Do self-employed people pay EI?
Generally no — self-employed Canadians do not pay regular EI premiums and cannot collect regular EI benefits. You can opt in to EI special benefits (maternity, parental, sickness, caregiving) by registering with the Canada Employment Insurance Commission, but it is voluntary. In Quebec, self-employed workers do pay into QPIP (parental insurance) at a higher rate than employees — not modelled in the headline figure here.
Should I set money aside for taxes, and how much?
Yes — nothing is withheld from self-employment income, so you owe it all at filing (and may have to pay quarterly instalments once your tax bill passes $3,000). A common rule of thumb is to park 25–30% of net income for a lower earner and more as you climb brackets. The "total tax" figure here, divided by your income, is your real set-aside percentage.
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Educational planning calculator, not tax filing or advice. Federal and provincial 2026 brackets, basic personal amounts and age amounts are verified at the government source; CPP figures are the official 2026 contribution rates and ceilings. CPP for the self-employed is the full both-halves contribution, with roughly half treated as deductible — a standard simplification; the exact base-vs-enhanced credit split can shift the result slightly. EI is excluded (self-employed are generally exempt); Quebec residents also pay QPP and QPIP at self-employed rates not fully modelled here. Confirm with a tax professional before filing. See our methodology.