Self-Employed Tax Calculator Canada — Tax + CPP

Net self-employment income (after business expenses)

Province

Tax year

estimated total for 2025 — income tax + CPP

Federal income tax (after basic personal amount + CPP credit)

Ontario tax (incl. surtax)

Ontario Health Premium

CPP + CPP2 (self-employed pays both halves)

Set aside monthly so April doesn't hurt

After-tax income

Effective (average) rate

What this calculator includes (and most don't)

CPP and CPP2, both halves — self-employed people pay the employee AND employer portions, and 2024's second ceiling (CPP2) adds more above the YMPE. This is usually the biggest surprise on a first freelance return.

The CPP deduction/credit split — part of your CPP reduces taxable income, part earns a credit. We apply it the way Schedule 8 does instead of ignoring it.

Ontario surtax and Health Premium — the surtax quietly adds 20-56% on top of Ontario basic tax at higher incomes, and the health premium adds up to $900. Calculators that skip these understate an Ontario bill by thousands.

The federal basic personal amount phase-down for higher incomes.

FAQ

How much tax do self-employed people pay in Canada?

How much should I set aside for taxes as a freelancer?

Do I pay more tax as a freelancer than an employee?

Your income tax rates are the same — there's no special "self-employment tax rate" in Canada. The differences: you pay both halves of CPP (an employee pays half and their employer pays half), nothing is withheld from your invoices (so the bill lands at filing or through instalments), and you deduct business expenses on form T2125 before tax applies.

Why isn't my province's tax included?

We only ship figures that have passed our verification suite against CRA-published sources. Ontario is fully covered (including surtax and health premium); for other provinces the estimate shows federal tax + CPP with a clear note, rather than silently guessing. More provinces are being added the same verified way.

Does this include GST/HST?

No — GST/HST is a separate tax you collect from clients once registered (mandatory over $30,000 of revenue in 4 consecutive quarters). Use the T2125 Generator for an estimate that includes your net GST/HST owing.

Now lower that number. Find the deductions you're missing, then generate your T2125 with the right amounts on the right lines.

Find My Missing Deductions → T2125 Generator →

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Self-Employed Tax Calculator — Canada

What this calculator includes (and most don't)

FAQ