Self-Employment Tax Calculator
Calculate income tax and double CPP contributions for self-employed Canadians.
2026 Tax YearData stays on your deviceUpdated Apr 1, 2026
$
$
Take-Home (After All Taxes)
$56,202.84
Net Business Income
$80,000.00
Effective Tax Rate
29.75%
Federal Tax
$10,292.73
Provincial Tax
$4,611.53
CPP (Both Portions)
$8,892.90
2x employee amount
CPP Deduction
$4,446.45
Half of CPP is deductible
Note: This is a simplified estimate. The employer portion of CPP is deductible, which slightly reduces your taxable income. Consult an accountant for precise figures.
Frequently Asked Questions
Why do self-employed pay double CPP?
Employees split CPP contributions 50/50 with their employer. Self-employed people are both the employee and employer, so they pay both halves — effectively doubling their CPP cost.
Do self-employed pay EI?
EI is optional for self-employed. If you opt in, you only get special benefits (maternity, parental, sickness, compassionate care) — not regular unemployment benefits.
What expenses can I deduct?
Business expenses including home office costs, vehicle expenses, supplies, professional fees, advertising, and more. Keep all receipts and records for CRA audit purposes.
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Built and reviewed by Konstantin Iakovlev · Data from CRA, CMHC, Bank of Canada · MethodologyDisclaimer: This calculator provides estimates based on publicly available data from CRA and other government sources. It does not constitute financial advice. Consult a qualified advisor for decisions about your specific situation.
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