Self-Employed
Tax Calculator 2025
Calculate your freelancer or business taxes including both portions of CPP, business expenses, and how much to set aside for quarterly instalments.
Full CPP Calculation
Self-employed pay both employer and employee CPP (11.9% total). We calculate your exact contribution and show the tax credit you'll receive.
Business Expense Tracking
Enter your business expenses to calculate net self-employment income. Only pay tax on your actual profit.
Instalment Planning
See how much you should set aside quarterly. Avoid penalties and interest by paying instalments on time.
Province/Territory
Income Sources
Click + to add your first income source
Deductions & Credits
Common Self-Employed Deductions
🏠 Home Office
Deduct portion of rent/mortgage interest, utilities, insurance, and property tax based on square footage used for business.
🚗 Vehicle Expenses
Gas, insurance, repairs, parking. Track business vs personal kilometres. Can use simplified or detailed method.
💻 Equipment & Software
Computers, phones, software subscriptions. Items over $500 may need to be depreciated (CCA).
📱 Phone & Internet
Business portion of cell phone and internet bills. Keep records of business usage percentage.
✈️ Travel
Business travel including flights, hotels, and transportation. Must be primarily for business purposes.
🍽️ Meals & Entertainment
50% of business meals with clients. Keep receipts with client names and business purpose.
2025 Self-Employed CPP Contributions
| Component | Rate | Maximum |
|---|---|---|
| Employee Portion | 5.95% | $3,867.50 |
| Employer Portion | 5.95% | $3,867.50 |
| Total Self-Employed | 11.9% | $7,735.00 |
| Basic Exemption | — | $3,500 |
| Maximum Pensionable Earnings | — | $68,500 |
Note: You receive a tax credit for the employee portion and a deduction for the employer portion.
Self-Employed Tax FAQ
When do I need to file as self-employed?
Self-employed Canadians have until June 15 to file, but any balance owing is still due April 30. If you owe money, you'll pay interest from May 1.
Do I need to register a business?
You can operate as a sole proprietor without registering. However, you need a business number if you earn over $30,000/year (GST/HST registration).
Can I deduct EI premiums as self-employed?
Self-employed individuals don't pay EI unless they opt into the EI special benefits program. If opted in, you pay the employee portion only (1.66%).
How much should I set aside for taxes?
A safe rule is 25-30% of net income for most people. Our calculator shows your exact amount based on your income and province.
How BracketBuddy Works
Enter Your Income
Add all your income sources: employment (T4), self-employment, investments, rental properties, and more. Use your paystub or tax slips to fill in the details.
Add Deductions
Enter your RRSP contributions, FHSA, childcare expenses, and other deductions that reduce your taxable income.
Get Your Results
See your estimated federal and provincial taxes, effective tax rate, and whether you'll owe money or get a refund.
Optimize & File
Review personalized recommendations to reduce your tax bill, then file your taxes with confidence.