Self-Employed Tax Calculator
Don't get hit with a giant tax bill in April. Estimate your 2026 net take-home pay today.
The Self-Employment Tax Reality
In Canada, when you are self-employed, you are both the employer and the employee. This means you are responsible for paying both portions of the Canada Pension Plan (CPP).
The CPP Hike: For 2026, the combined CPP rate is nearly 12%. This can be a major shock for new freelancers who are used to having their employer cover half.
How to Use This Calculator
- Gross Revenue - Everything you billed your clients this year.
- Deduct Expenses - Sub-contractors, software, office space, and travel expenses.
- Check Take-Home - The results show what's actually yours to keep after the government takes its share.
Calculation Formula & Example
The Formula
Net = (Revenue - Expenses) - (Double CPP) - (Income Tax) - (Optional EI)
Where:
- CPP Rate = 11.9% total (5.95% × 2).
- EI = Optional for self-employed individuals.
Example Calculation
If you net $100,000, you'll owe ~$8,000 in CPP and ~$20,000+ in income tax. Real take-home is closer to $70,000.
Benefits of Using This Calculator
- Quarterly Budgeting - Know how much to put in your 'Tax Savings' account every month.
- Expense Tracking Impact - See how every $100 of business expense saves you ~$40 in taxes.
- CPP Clarification - Understand the 'hidden' employer portion you are now responsible for.
Calculator Use Cases
Calculate the real profit of your gig work after the tax hit.
Use this to determine how much you should charge clients to maintain your desired standard of living.
Frequently Asked Questions
Related Financial Tools
Related Articles
Stay Updated with Financial Tips
Subscribe to our newsletter for the latest updates on personal finance, investment strategies, and financial tools.