Self-Employment Tax Calculator (Canada)
Calculate your Canadian self-employment taxes including CPP contributions, income tax, and quarterly instalments.
Enter values to see results
Fill in the form and click Calculate
Self-Employment Tax in Canada
Unlike employees who have taxes deducted at source, self-employed Canadians are responsible for calculating and remitting their own taxes. This includes both income tax and CPP contributions.
CPP for Self-Employed
Self-employed individuals pay both the employer and employee portions of CPP, totaling 11.9% on net earnings between $3,500 and $68,500. The maximum 2024 contribution is $7,735.
Tax Instalments
If you expect to owe more than $3,000 in taxes, you must pay quarterly instalments:
- March 15 - First instalment
- June 15 - Second instalment
- September 15 - Third instalment
- December 15 - Fourth instalment
Frequently Asked Questions
How much CPP do self-employed Canadians pay?
Self-employed Canadians pay both the employer and employee portions of CPP, totaling 11.9% (2 x 5.95%) of net self-employment earnings between $3,500 and $68,500. The maximum contribution for 2024 is $7,735. Half of CPP contributions are deductible from income.
Do I have to pay EI if self-employed?
EI is optional for self-employed Canadians. You can opt in to receive special benefits (maternity, parental, sickness, compassionate care), but you cannot receive regular EI benefits. If you opt in, you pay 1.66% of net self-employment income up to $63,200.
When do I need to pay tax instalments?
You must pay quarterly tax instalments if you expect to owe more than $3,000 ($1,800 in Quebec) in taxes for the current year and owed more than $3,000 in either of the two previous years. Instalments are due March 15, June 15, September 15, and December 15.
What business expenses can I deduct?
Common deductible expenses include: home office costs (proportional to space used), vehicle expenses (business use percentage), professional fees, advertising, supplies, equipment depreciation, business insurance, and professional development. Keep detailed records and receipts.