Calculate income tax, CPP (both sides), deductions, and quarterly instalments for Canadian freelancers and business owners — 2025.
Opt Into EI (Employment Insurance)?
Self-employed can opt in for maternity/parental/sickness benefits — $689/yr max premium
All deductions reduce your net business income and tax owing
Home Office
% of home expenses × business use
Vehicle (business %)
Business km ÷ total km × vehicle costs
Phone & Internet
Business portion only
Office Supplies
Directly used in earning income
Software & Tools
Subscriptions, apps, equipment
Advertising & Marketing
Website, ads, business cards
Professional Fees
Accountant, lawyer, consultant
Business Insurance
Liability, E&O, commercial
Business Travel
Flights, hotels for business
Meals & Entertainment
50% deductible for business meals
Training & Education
Courses, books, conferences
Other Expenses
Any other allowable business expense
Enter your revenue above
Your full self-employment tax breakdown will appear here.
Self-employed Canadians face a unique tax situation: you pay income tax like everyone else, but you also pay both the employee and employer portions of CPP — nearly double what an employee pays. Planning ahead and understanding your deductions is essential.
In 2025, the self-employed CPP contribution is 11.9% of net business income between $3,500 and $71,300 — up to $8,068. Additionally, CPP2 applies to income between $71,300 and $81,900 at 8%, adding up to $848. The employer half of CPP is deductible from income; the employee half generates a 15% federal tax credit.
CRA allows deductions for expenses incurred to earn business income: home office, vehicle (business portion), phone and internet, software, supplies, marketing, professional fees, business insurance, travel, and 50% of business meals. Keep all receipts and maintain a mileage log for vehicle claims.
Once your revenue exceeds $30,000 in any 12-month rolling period, you must register for GST/HST. After registration, you collect tax from clients and remit it to CRA — but you can also claim input tax credits for GST/HST paid on business expenses, which often results in net refunds.
The federal small business tax rate is 9% (vs 26%+ personal). If you're consistently earning more than you personally need, incorporation lets you leave profits in the corporation at a low rate and draw income as needed. The decision is complex and depends on your province, personal income needs, and plans for the business.
This calculator uses 2025 federal and provincial tax brackets, CPP rates, and EI premiums. Actual tax owing may differ based on other credits, deductions, and circumstances. HST/GST is not included in this calculation. Consult a CPA for self-employment tax planning. Not tax advice.