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Canada Self-Employed Tax Calculator for Freelancers

Use this Canada self-employed tax calculator to see your full bill before the CRA does. Outside Quebec, sole proprietors pay both halves of CPP — 11.9% instead of 5.95% — plus federal and provincial income tax. Quebec is different: it does not use CPP/EI — it uses QPP (Quebec Pension Plan) and QPIP (Quebec Parental Insurance Plan) instead. Enter your net business income to see the full picture for all 13 provinces and territories, with quarterly instalments.

Last updated: 19 October 2026 · 2025 federal and provincial rates, CPP/CPP2 ceilings and QPP/QPIP rules for Quebec · Official sources: Canada Revenue Agency (CRA) · Revenu Québec · How ToolNova builds its calculators

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Canada self-employed tax calculator — your numbers

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This is your T2125 net income — revenue minus deductible business expenses.

2025 figures — outside Quebec: CPP at 11.9% on earnings between $3,500 and $71,300 (YMPE), plus CPP2 at 8% on earnings between $71,300 and $81,200 (the second ceiling, YAMPE) for high earners. The employer-equivalent half of CPP is deductible. Quebec: QPP at 12.8% (both halves) on the same pensionable range plus QPP2 at 8% between $71,300 and $81,200, and QPIP at 0.878% for the self-employed on income up to $98,000 — Quebec does not pay CPP or EI. Federal basic personal amount $16,129 (Quebec residents receive the 16.5% federal abatement); provincial amounts vary. Outside Quebec, EI is optional for the self-employed and not included.

Your self-employed tax result

Total tax + CPP to set aside
C$–
Enter your income and calculate.
Federal income tax–
Provincial / territorial tax–
CPP contributions (both halves)–
Total owing–
Suggested quarterly instalment–
You keep–

Rule of thumb: set aside the percentage shown above from every payment you receive. Once your net tax owing passes $3,000 in a year, the CRA expects quarterly instalments. Register for GST/HST once your worldwide revenue passes $30,000 in any four consecutive quarters (in Quebec, register for QST with Revenu Québec).

Why freelancers pay more CPP — and why Quebec is different

Outside Quebec, employees split CPP with their employer — 5.95% each. As a sole proprietor you are both sides, so you pay 11.9% up to the year’s maximum pensionable earnings ($71,300 in 2025), plus CPP2 at 8% on earnings between $71,300 and $81,200 — the second ceiling (YAMPE) introduced for the enhanced CPP. The employer half is deductible from your income, which softens the blow slightly. A widely-cited worked example puts an Ontario freelancer netting $80,000 at roughly $22,000 in combined tax and CPP (about 27.7%) — use this calculator to get your own province’s figure.

Quebec does not use CPP or EI. Quebec residents contribute to the QPP (Quebec Pension Plan / Régime de rentes du Québec) instead of CPP — 12.8% both halves for the self-employed on pensionable earnings, plus QPP2 at 8% between the same two ceilings — and to QPIP (Quebec Parental Insurance Plan) instead of EI for parental benefits — 0.878% for the self-employed on income up to $98,000. Selecting Quebec in this calculator switches the pension line to QPP and adds a separate QPIP line; it also applies the 16.5% federal abatement Quebec residents receive. Do not pay CPP/EI on Quebec self-employment income.

When do I have to register for GST/HST?

Once your taxable revenue exceeds $30,000 over any rolling four quarters, registration becomes mandatory (some industries, like taxis, must register immediately). Many freelancers register voluntarily earlier to claim input tax credits. In Quebec you also register for QST with Revenu Québec.

What is CPP2?

CPP2 is the second additional CPP tier. Outside Quebec, if your pensionable earnings exceed the first ceiling (YMPE, $71,300 in 2025), you pay an extra 8% — 4% as employee + 4% as employer, so 8% total when self-employed — on the slice between $71,300 and $81,200 (YAMPE). Above $81,200 no further CPP/CPP2 is due. Quebec has the parallel QPP2 tier at the same 8% rate and ceilings.

I live in Quebec — do I pay CPP or QPP?

QPP, not CPP — and QPIP, not EI. Quebec opted out of CPP and runs its own pension plan (QPP) and parental insurance plan (QPIP). This calculator handles Quebec separately: choose Quebec above and the results show QPP + QPIP contributions instead of CPP/EI.

Should I incorporate?

Incorporation can defer personal tax on money left inside the company and opens the small-business deduction, but adds accounting and legal costs. It usually starts to pay off when you consistently earn well above what you need to live on — an accountant can model your exact case.

Sources: Canada Revenue Agency (CRA) — self-employed taxes, CPP and instalments · Revenu Québec — QPP and QPIP for the self-employed. Estimates for planning only — confirm with the CRA (or Revenu Québec in Quebec) or an accountant.

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