A Canada-specific calculator with the official 2026 brackets, CPP / QPP (self-employed pay both halves), and GST/HST threshold. See your true net profit after tax — and exactly how much to set aside per invoice.
🇨🇦 2026 tax year (calendar year)
Pick your country, enter your gross income and expenses — the math updates live in CAD.
In Canada, self-employed individuals are taxed on their net business income (gross revenue minus allowable expenses) at both the federal and provincial/territorial level. The 2026 federal brackets are 14% to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482, and 33% above, with a federal Basic Personal Amount of $16,452, claimed as a 14% non-refundable tax credit. Provincial tax is layered on top and varies materially by province — from low-rate Alberta to higher-rate Nova Scotia and Quebec — so selecting your province is essential for an accurate estimate. Combined top marginal rates range from roughly 44% to 54% depending on where you live.
Self-employed Canadians pay both the employee and employer halves of the Canada Pension Plan. CPP1 is 11.9% combined on net earnings between the $3,500 basic exemption and the $74,600 Yearly Maximum Pensionable Earnings (YMPE), up to $8,460.90. CPP2 (the enhanced component) adds 8% on earnings between $74,600 and $85,000 (YAMPE), up to $832. Quebec residents pay QPP instead at a higher 12.6% combined base rate. The employer half and the enhanced portion of your CPP/QPP contributions are deductible from income, and the base employee portion earns a non-refundable tax credit (14% federally, plus a provincial credit) — both are applied automatically in this calculator.
If you owe more than $3,000 in a year ($1,800 for Quebec residents), the CRA requires quarterly instalment payments on 15 March, 15 June, 15 September, and 15 December, calculated from your prior-year liability. Any balance owing for 2026 is due by 30 April 2027; self-employed individuals have until 15 June 2027 to file the return. Underpaying instalments can trigger instalment interest. GST/HST registration is compulsory once worldwide taxable revenue exceeds $30,000 in a quarter or over four consecutive quarters.
Common deductible expenses include equipment, software, a home-office (use-of-home) portion, professional fees, insurance, and travel/vehicle costs. Capital equipment is generally depreciated through the Capital Cost Allowance rather than expensed in full, though immediate expensing may apply to some assets. Keep receipts and records for six years. The payment calendar on this page lists the instalment dates.
Canadian freelancers pay federal income tax on net profit (gross minus expenses) using the 2026 brackets — 14% to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482, and 33% above — plus provincial/territorial tax (select your province), plus CPP. The federal Basic Personal Amount of $16,452 is claimed as a 14% non-refundable tax credit. Provincial tax varies significantly, from low-rate Alberta to higher-rate provinces like Nova Scotia and Quebec.
Because you pay both the employee AND employer halves. The combined CPP1 rate is 11.9% on net self-employment earnings between $3,500 (basic exemption) and $74,600 (YMPE), up to a maximum of $8,460.90. CPP2 adds 8% on earnings between $74,600 and $85,000 (YAMPE), up to $832. The employer half and the enhanced portion of your CPP contributions are deductible from income, and the base employee portion earns a non-refundable tax credit (14% federally, plus a provincial credit) — both are applied automatically in this calculator.
Yes — select Quebec in the province dropdown. Quebec residents pay QPP instead of CPP at a higher combined base rate (12.6%), and Quebec has its own provincial tax brackets and a separate tax return filed with Revenu Québec. The calculator applies Quebec rates and flags the QPP difference.
You must register for GST/HST once your worldwide taxable revenue exceeds $30,000 in a single calendar quarter or over four consecutive quarters. Once registered, you collect GST/HST on sales and remit it to the CRA (net of input tax credits). GST/HST you collect is not your income — it is held in trust. This calculator flags the $30,000 threshold based on your gross income.
Yes, if you owe more than $3,000 in a year ($1,800 for Quebec residents). The CRA requires quarterly instalments (March 15, June 15, September 15, December 15) based on your prior-year liability. If you underpay, you may be charged instalment interest. The payment calendar on this page lists the dates.
Common deductible expenses include equipment and hardware, software and subscriptions, a home-office (use-of-home) portion, professional fees (accountant, legal), insurance, and travel/vehicle costs. Only claim expenses incurred to earn your business income, and keep receipts. Capital equipment may need to be depreciated (capital cost allowance) rather than expensed in full.
Your estimate subtracts your business expenses from your gross income to get net profit, then applies Canada's official 2026 income tax brackets and CPP / QPP (self-employed pay both halves), using the GST/HST threshold flag for your gross income. The result shows your take-home pay and how much to set aside per invoice.