Self-Employed Tax Calculator (2026)
No employer means no one withholding tax for you — and a CPP bill at double the employee rate. Enter your net income to see what to set aside for tax and CPP, and when HST kicks in.
Set aside for tax + CPP
$0
What self-employment really costs at tax time
Two things make self-employed tax feel heavier than employment. First, nothing is withheld through the year, so the whole bill arrives at once — most people set aside 25–30% of net income to be safe. Second, CPP is doubled: you pay both the 5.95% employee share and the 5.95% employer share, up to the combined maximum, because you're both. Half of that CPP is deductible, which takes some of the sting out.
Watch the $30,000 line. Once your revenue passes $30,000 over four rolling quarters, you have to register for and charge GST/HST. Below it, registering is your choice. The calculator flags the threshold as your income crosses it.
Common questions
How much tax will I pay on $40,000 self-employed?
On $40,000 net in Ontario for 2026, expect roughly $4,300 income tax plus about $4,300 CPP — the CPP is double an employee's because you pay both halves. Budget to set aside close to a quarter of the income. Enter your own figure above for the exact split.
Why is CPP double when you're self-employed?
An employee pays 5.95% and the employer matches it. Working for yourself, you're both, so you pay the full 11.9% on pensionable earnings from $3,500 to $74,600, plus CPP2 above that. Half is deductible from income, which softens it at tax time.
Do I have to charge HST when self-employed?
Once revenue crosses $30,000 over four consecutive calendar quarters you must register for GST/HST and charge it. Below $30,000 you're a small supplier and it's optional. The calculator flags when you reach the threshold.
Do self-employed people pay EI?
Not automatically — EI isn't deducted from self-employment income. You can opt in to EI special benefits through Service Canada and pay the employee rate. Tick the opt-in box above to include it.