Self-Employment Tax Calculator
Calculate your total tax liability as a self-employed Canadian, including both shares of CPP, federal and provincial income tax, and quarterly installment amounts.
Self-Employment Income
Self-Employment Tax Summary
Effective Tax Rate
29.0%
Quarterly Installment
$6,102
How it works: Self-employed Canadians pay both the employee and employer shares of CPP (11.9% combined). Half of CPP contributions are deductible from taxable income. EI is optional for self-employed individuals and is not included here. CRA requires quarterly tax installments if your net tax owing exceeds $3,000.
Self-Employment Tax in Canada
Self-employed individuals pay both the employee and employer portions of CPP contributions, totaling 11.9% of net self-employment earnings (up to the YMPE). However, the employer half is deductible from income, reducing your taxable income.
CPP2 (Enhanced): An additional 8% (both shares) applies on earnings between the YMPE and the second earnings ceiling.
Quarterly installments: If your net tax owing exceeds $3,000 in the current year and either of the two previous years, CRA requires you to pay tax in quarterly installments (March 15, June 15, September 15, December 15).
EI: Employment Insurance is optional for self-employed individuals and is not included in this calculation. You can opt in through Service Canada for special benefits.