How the estimate works
Your net business income is revenue minus the expenses you can deduct. That amount is taxed at the federal and provincial or territorial rates for 2026, using the same engine as the income tax calculator on this site.
Self-employed people pay both the employee and employer halves of CPP. For 2026 that is 11.9% on net earnings from $3,500 to $74,600 and 8% on earnings from $74,600 to $85,000. You deduct the employer half and the enhanced portions, and claim a credit for the base employee half.
In Quebec, the QPP replaces CPP and you also pay QPIP premiums on your net income, at a self-employed rate of 0.764%.
Because nothing is withheld, the CRA expects instalments if your net tax owing is over $3,000 in the year and in each of the two preceding years.
What this leaves out
- GST/HST you collect and remit, which is not income.
- Employment or investment income, and credits such as tuition or the Canada workers benefit.
- EI special benefits, which self-employed people can opt into for a premium that we do not model.
- Quebec figures: we could not read the Revenu Québec pages by automated means, so Quebec QPP, QPIP and income tax parameters are cross-checked against secondary summaries. Confirm them with Revenu Québec.
- Ontario Health Premium is included in provincial tax; other provincial surtaxes and reductions are applied only where the income tax engine models them.
Frequently asked questions
How much should I set aside from each payment?
The result shows the share of net income going to tax and contributions. Many people set aside a bit more as a buffer, then adjust once they see their actual expenses.
Why is self-employed CPP so high?
You pay both the employee and employer halves. For 2026 that is 11.9% of earnings between $3,500 and $74,600, plus 8% on the second tier up to $85,000.
Can I deduct part of my CPP?
Yes. You deduct the employer-equivalent half of base CPP and the enhanced contributions, and claim a non-refundable credit for the base employee half.
Do I pay EI if I am self-employed?
Not unless you register for the special benefits program. This estimate does not include EI.
Does this include GST/HST?
No. GST/HST you collect belongs to the government and is not income. Use the GST/HST calculator for that.
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How we check
The tests compare the CPP part with the CRA 2026 maximums (employee $4,230.45 and CPP2 $416.00, doubled for both halves) and a hand calculation at $80,000. Income tax uses the engine tested in the income tax calculator against 2026 CRA T4032 constants.
Limits: we did not compare totals with CRA tools or tax software. Quebec parameters are unconfirmed.