Self-Employed Tax Calculator 2026

What you keep from your business after income tax and both halves of CPP, how much to put aside from each payment, and how it compares with a job paying the same.

2026 rates · verified Oct 21–29, 2026

Take-home

$52,023.11 a year

$4,335.26 a month

Breakdown
Net business income	$70,000.00
CPP, both halves	$7,913.50
CPP2	$0.00
EI special benefits	$0.00
Federal tax	$6,834.42
Provincial tax	$3,228.97
Income tax	$10,063.39

Set aside about 25.7% of each payment for tax and CPP.

As an employee earning $70,000.00, you’d take home $54,107.21; your employer would also pay $5,529.05 of CPP and EI.

You’d owe about $17,976.89 with your return: $10,063.39 of income tax and $7,913.50 of CPP. Your net tax owing (the income tax) is over $3,000: if it was also over $3,000 in 2025 or 2024, CRA asks for quarterly instalments of about $4,494.22, CPP included. Plan your instalments

GST/HST: you must register once your taxable sales pass $30,000 in a calendar quarter or over four in a row. See the GST/HST calculator.

Your inputs

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Confirmed for 2027: outside Quebec, the self-employed CPP rate (both halves) drops from 11.9% to 11.5% on earnings up to $76,700, and the CPP2 ceiling rises from $85,000 to $87,400. The calculators move to 2027 rates from January 1, once the rest of the 2027 figures are published. Sources: Finance Canada (Bill C-30), CRA’s YMPE table.

What changes when you’re self-employed

You pay both halves of CPP: 11.9% of your net business income between $3,500 and $74,600 (up to $8,461), plus 8% between $74,600 and $85,000 (up to $832). If you also have a job, you only pay on the room the job leaves.
No employer, no withholding: nobody takes tax off as you earn, so it’s all due with your return, and often in instalments the year after.
No EI by default: you can sign up for special benefits only.
No Canada employment amount on business income: that credit is only for employment income.

How this is calculated

Net income = business income − business expenses.
CPP on net income, both halves (CRA Schedule 8), less what a job already covered.
Income tax with our income tax engine: half the base CPP is a credit (line 31000); the other half and the enhanced contributions are a deduction (line 22200); EI premiums, if you’ve signed up, are a credit.
Take-home = net income (and any job income) − income tax − CPP − EI.

Business expenses

Expenses you incur to earn business income come off before tax and CPP: supplies, a share of your home office, vehicle costs for business driving, phone and internet, professional fees and more, each with its own rules. CRA’s guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income explains them; keep your receipts for six years.

Paying yourself and setting money aside

Because nothing is withheld, the safest habit is to move a fixed share of every payment you receive into a separate account. The share depends on your income and province; with no other income:

Province or territory	Net $40,000	Net $70,000	Net $120,000
Alberta	20.16%	25.68%	28.50%
British Columbia	20.06%	25.43%	27.74%
Manitoba	22.95%	28.72%	31.94%
New Brunswick	22.75%	28.43%	31.89%
Newfoundland and Labrador	22.49%	28.87%	32.47%
Northwest Territories	20.16%	25.25%	27.93%
Nova Scotia	23.79%	30.47%	34.13%
Nunavut	19.18%	23.90%	26.30%
Ontario	21.41%	26.14%	28.98%
Prince Edward Island	22.84%	29.24%	33.32%
Saskatchewan	21.59%	27.63%	30.66%
Yukon	20.65%	25.49%	27.99%

Income tax and CPP as a share of net business income, 2026 rates. Quebec isn’t in the table yet.

Worked example

A consultant in Alberta bills $80,000 and has $10,000 of expenses, with no other income.

Net income: $70,000.00.
CPP: 11.9% × ($70,000.00 − $3,500) = $7,913.50; no CPP2 below $74,600.
Income tax: $6,834.42 federal + $3,228.97 Alberta = $10,063.39.
Take-home: $52,023.11, or $4,335.26 a month; set aside about 25.7% of each payment.
An employee paid $70,000.00 would take home $54,107.21, and their employer would add $3,956.75 of CPP and $1,572.30 of EI.

EI special benefits: worth it?

Signing up costs 1.63% of your net income up to $68,900 ($1,123.07 at most in 2026; 1.3% in Quebec). It pays maternity, parental, sickness, compassionate care and family caregiver benefits, not regular EI. It makes the most sense if you’re planning a family; once you claim, you can never opt out while you’re self-employed.

What this calculator assumes

You’re a sole proprietor (not incorporated), resident in the province or territory you choose all year, and your business made a profit.
Only the basic personal amounts and the CPP and EI credits; no other deductions or credits.
A job’s income tax, CPP and EI are withheld from your pay.
Quebec: QPP (12.6% and 8%) and QPIP (0.764%) on your business income only, without the income tax estimate.

Frequently asked questions

Do I need to charge GST/HST?

Only once you’re no longer a small supplier: when your taxable sales pass $30,000 in a single calendar quarter or over the last four calendar quarters together. Then you must register and start charging GST or HST. You can register voluntarily before that, which lets you claim back the GST/HST you pay on business expenses.

When is my tax due if I’m self-employed?

Your return is due June 15, 2027, but any balance owing for 2026, including the CPP on your business income, is due April 30, 2027. Interest starts on May 1. If your net tax owing (the income tax, not counting CPP) is more than $3,000 ($1,800 in Quebec) this year and in either of the two previous years, CRA asks for quarterly instalments, which then include your CPP. The quarterly tax calculator works them out.

Can I contribute to an RRSP?

Yes. Net self-employment income counts as earned income for RRSP room, so it builds room the same way a salary does: 18% of the previous year’s earned income, up to the yearly limit. An RRSP contribution lowers your income tax but not your CPP, which is worked out on your net business income.

Why do I pay double CPP?

An employee pays 5.95% and the employer pays the same again. When you work for yourself you’re both, so you pay 11.9% (up to $8,461 in 2026), plus 8% on earnings between $74,600 and $85,000. Half of the base part is a tax credit and the rest is a deduction, so the real cost is lower than the headline rate.

Is EI for self-employed people worth it?

It only covers special benefits: maternity, parental, sickness, compassionate care and caregiving, not regular EI if your business slows down. You pay the employee rate (1.63% in 2026) with no employer share, you must wait 12 months after signing up before claiming, and once you’ve received benefits you must keep paying for as long as you’re self-employed.

Rates for tax year 2026, verified October 21 to October 29, 2026 · Page updated October 29, 2026

Sources