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Example and reference only. This calculator produces illustrative estimates to help you plan. Figures are not exact, do not account for your full circumstances, and must not be used to file, remit, or make financial commitments. Confirm every amount with the CRA, Revenu Québec, or your accountant before acting on it. Nothing here is tax, accounting, or financial advice.

Self-employed

Self-Employed Tax and Instalment Estimator

For sole proprietors and freelancers: how much of your profit goes to income tax and both halves of CPP, how much to set aside each month, and whether the CRA will expect quarterly instalments.

Assumes the basic personal amount only and no RRSP or other deductions. Employment income is assumed to have had CPP and EI withheld already. Optional EI for the self-employed is not included.

Set aside each month $1,991 $23,890 for the year — about 28.1% of your net business income.
For the year
Net business income $85,000
CPP (both halves, 11.9%) $8,461
CPP2 (both halves, 8%) $832
Federal income tax $9,641
Ontario income tax $4,956
Total to set aside $23,890

Instalments and deadlines

  • →You will likely be asked to pay quarterly instalments: about $5,973 on March 15, June 15, September 15 and December 15. The CRA requires them when net tax owing is over $3,000 this year and in either of the two previous years.
  • →Self-employed returns are due June 15, but any balance owing is due April 30. Interest runs from May 1.
  • →GST/HST you collect is not income and is not in these figures. Keep it in a separate account and remit it on its own schedule.
  • →Incorporating, RRSP contributions, the home-office and vehicle deductions can all change this number. Run it past an accountant before you rely on it.
Self-Employed Tax and Instalment Estimator | CanadianSME