Skip to main content
Calculators/

Self-Employed Tax Calculator

2025
Business Details
$

Your net self-employment income after business expenses

$

Already deducted from your net income above — shown for reference

Your Results

Net Business Income

$100,000.00

Take-Home Income

$71,399.25

Total Deductions

$28,600.75

Effective Rate

28.6%

Marginal Rate

29.6%

Tax Breakdown
Net Business Income$100,000.00
CPP/QPP Deduction (employer half)-$4,646.45
Taxable Income$95,353.55
Federal Income Tax-$13,440.20
Provincial Tax (Ontario)-$5,867.65
Total Income Tax-$19,307.85
CPP/QPP (both portions @ 11.9%)-$9,292.90
Total Deductions-$28,600.75
Net Take-Home Income$71,399.25
Period Breakdown
PeriodNet Income
Annual$71,399.25
Monthly$5,949.94
Weekly$1,373.06
Quarterly Instalment (tax only)$4,826.96
More Information
Understanding Self-Employed Tax in Canada

Everything you need to know about self-employment tax obligations

Self-employed individuals in Canada report business income on their personal T1 tax return using form T2125 (Statement of Business or Professional Activities). You pay the same federal and provincial income tax rates as employed individuals, but you also pay both the employee and employer portions of CPP/QPP contributions.
Form T2125 is the Statement of Business or Professional Activities. It is used to report self-employment income and expenses. You attach it to your T1 personal tax return. It captures gross revenue, cost of goods sold, operating expenses, and calculates your net business income.
Employed workers split CPP contributions with their employer (each paying 5.95% in 2025). Self-employed individuals have no employer, so they must pay both portions — a combined rate of 11.9% on pensionable earnings between $3,500 and $71,300. You can deduct the employer-equivalent portion (half) from taxable income.
Yes. Self-employed Canadians can voluntarily opt into EI special benefits through the Canada Employment Insurance Commission. This gives access to maternity, parental, sickness, compassionate care, and family caregiver benefits — but not regular EI benefits. Once you opt in, you must wait 12 months before claiming.
If your net tax owing (after withholdings) exceeds $3,000 in the current year and either of the two preceding years, the CRA will require you to make quarterly instalment payments. Instalments are typically due March 15, June 15, September 15, and December 15.
Your RRSP contribution room is based on 18% of your previous year's earned income, up to the annual maximum ($32,490 for 2025). Net self-employment income (after expenses but before tax) counts as earned income for RRSP purposes. Unused room carries forward indefinitely.
Common deductible expenses include office supplies, advertising, professional fees, insurance, vehicle expenses (business portion), home office costs, meals and entertainment (50%), travel, phone and internet (business portion), and capital cost allowance on equipment. Expenses must be reasonable and incurred to earn business income.
You need a CRA business number if you must charge GST/HST (revenue over $30,000/year), have employees, or import/export goods. Even without these requirements, having a business number helps manage your tax accounts and is needed for GST/HST registration.

CRA-Aligned: This calculator uses official CRA tax rates and CPP thresholds for the 2025 tax year. Self-employed CPP is calculated at the combined rate of 11.9%. Results are estimates — consult a tax professional for personalised advice.

Disclaimer: This calculator provides estimates based on current CRA rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant before making financial decisions. Read our terms

Related Calculators

GST/HST Calculator

Add or remove GST/HST/PST by province — from 5% GST to 15% HST.

Business Deductions Calculator

Which expenses are deductible — vehicle, home office, supplies, travel.

CPP for Self-Employed

Calculate both employer and employee CPP portions on self-employment income.

Home Office Deduction Calculator

Calculate home office deductions using detailed method (T2200) or flat rate.

Invoice Calculator

Build invoices with correct GST/HST — inclusive and exclusive amounts.

Sole Proprietor Tax Calculator

Complete tax breakdown for sole proprietor T2125 business income.