Self-Employed Tax Calculator 2026: How Much to Set Aside

Updated October 2026

Enter your net self-employment income (revenue minus business expenses, before GST/HST) and your province. You'll get an estimate of federal and provincial income tax plus CPP (or QPP in Quebec), and the share of each payment to put aside. GST/HST you collect isn't income and should be set aside separately.

Net self-employment income for 2026

After expenses. Use the home office and mileage calculators to work out some of those.

Other income (optional)

We assume tax on this is already withheld. Only the extra tax caused by your self-employment goes into the set-aside.

RRSP contribution you'll deduct for 2026 (optional)

An RRSP deduction lowers your income tax but not your CPP (or QPP): CPP is worked out on net self-employment income before the RRSP deduction. Your limit is on your notice of assessment (18% of last year's earned income, up to $33,810 for 2026).

Province or territory of residence on December 31, 2026

Typical payment (optional)

Gross revenue for the last 12 months / four calendar quarters (before expenses, optional)

Estimate, not tax advice. Uses 2026 rates where published (all figures used here were published by October 2026) and only the basic personal amount and CPP/QPP credits and deductions. Your actual tax depends on your full return. Check with the CRA, Revenu Québec or a qualified professional before you rely on it.

Sources

What this estimate leaves out

Other credits and deductions besides the optional RRSP amount (tuition, medical, donations, dependants)
The Ontario and BC tax reductions and other low-income reductions
CPP you already paid through a job
Quebec QPIP premiums and the Quebec worker deduction

At low incomes it errs toward setting aside a little too much.

How the estimate works

This estimate starts with net self-employment income. That is business revenue minus allowable expenses, before GST/HST. Sales tax you collect is not part of that number.

CPP or QPP is worked out on the self-employment income first. The deductible portion comes off taxable income. Federal tax then uses the 2026 brackets, the basic personal amount, and the CPP or QPP credit. Provincial or territorial tax uses that province's brackets and its own basic amount.

If you enter other income, such as a salary, the calculator taxes the combined income and subtracts the tax on that other income alone. Only the extra tax from self-employment is in the set-aside. Tax already withheld on a paycheque is not counted twice.

If you enter an RRSP deduction, it lowers taxable income for the income-tax part only. CPP and QPP stay based on net self-employment income.

Why CPP is a big part of it

Self-employed people pay both halves. In 2026 the base and first additional contribution is 11.9% of net earnings between $3,500 and $74,600. CPP2 adds 8% on earnings between $74,600 and $85,000. Quebec uses QPP, at 12.6% plus 8%. See the CPP self-employed calculator for the split.

The employer half, the enhanced 1% portion, and all of CPP2 are deductible. The employee base portion (4.95%, or 5.30% for QPP) is a non-refundable credit instead. You still pay the full amount in cash. On $60,000 of net income outside Quebec, CPP is $6,723.50 before any credit.

What % should I set aside?

There is no one percentage for every province. A modest income can land in the mid-teens once CPP is included. Higher income, or a higher-rate province, often lands between 25% and 35%. Many people end up somewhere from 20% to 35% of net self-employment income.

The recommendation rounds up to the next whole percent. A 24.3% result becomes 25%. The extra sliver is there so a small miss in your expenses does not leave you short. It is a planning figure, not the amount on a notice of assessment.

Quarterly instalments

If income tax (not CPP) is over $3,000, or federal tax is over $1,800 in Quebec, and that was also true in one of the two previous years, the CRA expects quarterly instalments. Use the tax instalment calculator to compare the three ways to work out the payments. The usual dates are March 15, June 15, September 15 and December 15, moved to the next business day when a date falls on a weekend or holiday.

Under the threshold, you normally pay the balance by April 30, 2027. The return itself can wait until June 15 when you or your spouse have self-employment income, but any balance owing is still due April 30.

Don't forget GST/HST

GST/HST and QST collected on sales are not income. Keep that money apart from the income-tax set-aside. Use the sales tax calculator to see the tax on a price, and the GST registration checker to see how close you are to the $30,000 small-supplier line.

Questions

How much should I set aside for taxes when self-employed in Canada?

Many people land between 20% and 35% of net income once CPP is included. Use the calculator for your province.

Do self-employed people pay both halves of CPP?

Yes. 11.9% on net self-employment earnings between $3,500 and $74,600 in 2026, plus 8% CPP2 up to $85,000. Most of it is deductible; the employee base part is a tax credit.

When do I have to pay tax instalments?

Income tax, not including CPP, is what counts toward $3,000 ($1,800 of federal tax in Quebec). Instalments apply when that amount is over the threshold this year and in either of the two previous years.

Is GST/HST part of my income?

No. It's collected for the government, so keep it separate.

What is net self-employment income?

Business revenue minus allowable expenses: line 9946 of Form T2125.

Is this tax advice?

No. It's an estimate using 2026 brackets, basic personal amounts and CPP only.

Does an RRSP contribution reduce CPP for self-employed people?

No. CPP is worked out on net self-employment earnings. An RRSP deduction lowers taxable income, and the income tax on it, but not CPP or QPP.

How much should I set aside each month?

Divide the total to set aside by 12. The calculator shows that amount, and the quarterly amount (total divided by 4).