Freelancer & Self-Employed Tax Calculator Canada (2026)

Self-employed Canadians pay the part of CPP that an employer would normally cover, on top of income tax, and nobody withholds any of it from an invoice. This calculator estimates your full 2026 bill on net business income, income tax plus both halves of CPP, and turns it into the percentage of every invoice you should be setting aside.

Net self-employment income for the year (after business expenses) ($)Province or territory

Uses 2026 CPP: 11.9% (both halves) on earnings between $3,500 and $74,600, plus CPP2 at 8% on earnings from $74,600 to $85,000; half of the base CPP is deductible from income. EI is not included because it is optional for most self-employed people (opt-in). Quebec residents pay QPP instead. GST/HST you collect is never income and is not included.

How it works

The surprise in a freelancer’s first tax bill is rarely the income tax. It is CPP: employees split the 5.95% with their employer, but a sole proprietor pays both halves, 11.9%, on pensionable earnings, plus the CPP2 layer on higher earnings. On $80,000 of net income that CPP bill alone is $8,892.90 for 2026.

The second lesson is instalments. Once your net tax owing passes $3,000 in two consecutive years, the CRA expects quarterly instalment payments, and charges interest on late ones. Setting aside the percentage this calculator shows, in a separate account, from the very first invoice, is the habit that keeps self-employment stress-free.

Worked example

The calculator’s own output for $80,000 of net self-employment income in Ontario in 2026:

Item	Amount
Net self-employment income (Ontario)	$80,000.00
CPP payable, both halves incl. CPP2	$8,892.90
Taxable income after half-CPP deduction	$75,553.55
Federal + Ontario tax + health premium	$14,178.88
Total tax + CPP to set aside	$23,071.78
Share of every invoice to set aside	28.84%
You keep	$56,928.22

Frequently asked questions

How much tax do I set aside as a freelancer in Canada?

It depends on income and province. At $80,000 net in Ontario, this calculator says 28.84% of income covers income tax plus both halves of CPP. A common rule of thumb is 25% to 30% in a separate savings account.

Do self-employed people pay both halves of CPP?

Yes. The employee and employer shares total 11.9% on earnings between the $3,500 exemption and the $74,600 ceiling in 2026, plus 8% total CPP2 on the $74,600 to $85,000 band. Half of the base contribution is deductible, and the other half earns a tax credit.

Do freelancers have to charge GST/HST?

Once your taxable revenues pass $30,000 over four consecutive quarters (or in a single quarter), you must register and charge GST/HST. Many register voluntarily earlier to claim input tax credits on expenses.

Can I deduct expenses as a sole proprietor?

Yes: reasonable business expenses reduce your net income, which is the figure this calculator starts from. Home office, vehicle (by business kilometres), supplies, software and professional fees are the usual categories. Keep receipts for six years.

Should I incorporate as a freelancer?

Incorporation can defer tax when income is well above what you need to live on, because corporate rates are lower, but it adds legal and accounting costs and the money is taxed again when paid out. It rarely pays at lower incomes; get advice once profits consistently exceed your spending.

More free calculators

For education only. This calculator gives estimates, not financial, tax or legal advice. Figures use 2026 rates where a rate is built in; confirm your own numbers before making a decision.