How much CPP do self-employed Canadians pay?

Self-employed individuals pay both the employee and employer portions of CPP, totaling 11.9% of net self-employment earnings up to the YMPE. The employer half is deductible from income, which reduces your taxable income. CPP2 adds an additional 8% (both shares) on earnings between the YMPE and the second ceiling.

Do self-employed Canadians pay EI?

Employment Insurance is optional for self-employed individuals. You can opt in through Service Canada to access special benefits like maternity, parental, sickness, and compassionate care benefits, but you cannot access regular EI benefits for unemployment.

When do I need to pay quarterly tax installments?

If your net tax owing exceeds $3,000 in the current year and either of the two previous years, the CRA requires quarterly installments due March 15, June 15, September 15, and December 15. Failing to pay on time results in installment interest charges.

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.

01 —INPUTS

Self-Employment Income

Gross Income (CAD)

Business Expenses (CAD)

Province / Territory

Tax Year

02 —RESULTS

Self-Employment Tax Summary

Gross Income$100,000

Business Expenses-$15,000

Net Profit$85,000

CPP (Self-Employed)$8,461

CPP2 (Enhanced)$832

Half-CPP Deduction-$4,646

Taxable Income$80,354

Federal Tax$10,365

Provincial Tax$4,487

Total Tax (Income Tax + CPP)$24,145

Net Income$60,855

Effective Tax Rate

28.0%

Quarterly Installment

$6,036

03 —BREAKDOWN

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.

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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.

Sources

Last updated April 2026. Reflects 2026 tax year rates.

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