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. Of the base 9.9% portion, the employer-equivalent half is deductible from income and the other half generates a non-refundable tax credit; the CPP enhancement layered on top is fully deductible. CPP2 adds an additional 8% (both shares) on earnings between the YMPE and the second ceiling, fully deductible with no credit portion.

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

CPP Deduction (Lines 22200/22215)-$5,773

Taxable Income$79,227

Federal Tax$9,641

Provincial Tax & Levies$4,956

CPP Tax Credit Applied (Line 31000, already reflected above)$670

Total Tax (Income Tax + CPP)$23,890

Net Income$61,110

Effective Tax Rate

28.0%

Quarterly Installment

$5,973

03 —BREAKDOWN

How it works: Self-employed Canadians pay both the employee and employer shares of CPP (11.9% combined). The employer-equivalent half of the base CPP rate plus all of the CPP enhancement (including CPP2) is deductible from taxable income; the remaining base-CPP half generates a non-refundable tax credit instead, same as an employee’s own CPP withholding. 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). Of the base 9.9% portion, the employer-equivalent half is deductible from income; the other half generates a non-refundable tax credit instead. The CPP enhancement layered on top of the base rate is fully deductible.

CPP2 (Enhanced): An additional 8% (both shares) applies on earnings between the YMPE and the second earnings ceiling, and is fully deductible from income (no credit portion).

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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Self-Employment Tax in Canada

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