Plan business taxes using current rates and inputs. Review federal, provincial, CPP, EI, and profit. Export results, compare scenarios, and budget cash flow better.
| Scenario | Province | Revenue | Expenses | Other Income | RRSP |
|---|---|---|---|---|---|
| Freelance Designer | Ontario | $95,000 | $18,000 | $4,000 | $6,000 |
| Consultant | British Columbia | $140,000 | $33,000 | $12,000 | $10,000 |
| Independent Contractor | Quebec | $88,000 | $20,000 | $0 | $5,000 |
Net business income equals gross revenue minus deductible business costs. Taxable income equals net business income plus other income minus RRSP deduction.
Federal tax is calculated with progressive federal brackets. Provincial or territorial tax is calculated with the selected local brackets.
Basic personal amount credits reduce tax. The calculator applies the federal credit rate and the lowest local rate to the selected basic personal amounts.
Self employed CPP or QPP uses pensionable earnings after the basic exemption. A second additional contribution applies on earnings above the first ceiling.
EI special benefits premium is optional. It applies to net business income up to the annual insurable earnings limit.
Choose your province or territory first. Enter your annual self employed revenue.
Add ordinary business expenses, home office costs, vehicle costs, and any other deductible costs.
Enter other taxable income if you also have employment, investment, or side income. Add your RRSP deduction if planned.
If you already paid CPP, QPP, or EI through employment, enter those values. This helps reduce duplicate contribution estimates.
Use the adjustment fields for local credits, health premiums, surtaxes, or custom changes. Submit the form to see the estimate above the calculator.
A self employed tax estimate helps you plan cash flow. It reduces filing surprises. It also shows how deductions change taxable income. Many business owners earn uneven revenue during the year. A clear estimate helps you set aside enough money each month.
This calculator combines federal tax and provincial tax. It also estimates CPP or QPP and optional EI special benefits premiums. You can include revenue, expenses, home office costs, vehicle costs, other income, and RRSP deductions. That makes the result more useful than a simple percentage guess.
Business deductions reduce net income. Lower net income usually lowers income tax. It can also reduce pension contributions and optional premiums. Home office costs, supplies, travel, software, phone bills, and vehicle use often affect the final number. Enter realistic values. Avoid aggressive assumptions.
Canada does not use one tax rate everywhere. Each province and territory has different brackets and credits. Quebec also uses QPP. Ontario has different local rules than Alberta or British Columbia. Because of that, changing the province can shift your estimate even when business income stays the same.
The quarterly and monthly reserve figures support budgeting. They are not your filed instalment notice. Still, they help you build a savings habit. Many sole proprietors transfer a fixed amount after each client payment. That approach protects working capital and supports year end filing.
Clean records improve tax accuracy. Save invoices, receipts, mileage logs, and home office support. Separate personal spending from business spending. Review your numbers every month, not only at filing time. Small updates are easier than a rushed year end cleanup. Better records also help you explain deductions if questions come up later.
This tool is designed for planning. It is not a substitute for a filed return. Credits, surtaxes, health premiums, loss carryovers, and special Quebec items may change the final amount. Use the result to compare scenarios, review deductions, and prepare for professional tax advice.
Yes. It includes all provinces and territories. Quebec is handled separately because it uses QPP and separate provincial tax rules.
No. It is a planning estimate. Final tax can change because of surtaxes, health premiums, special credits, prior year balances, and return specific adjustments.
RRSP deductions lower taxable income. Lower taxable income can reduce both federal and provincial income tax. It is useful for year end planning.
Some self employed people also have employment income. Entering prior payroll contributions helps reduce double counting when the calculator estimates annual contribution room.
It estimates the optional premium for self employed EI special benefits. Leave it off if you do not participate in that program.
Yes. The reserve amounts help planning. They are not a government notice. Use them as budgeting targets and verify formal instalment requirements separately.
Each province and territory has different tax brackets and credit amounts. Quebec also has separate pension rules. Local differences can materially change take home income.
Only if you are modelling a custom case. The default values are useful for planning. Override them when your filing facts require a different amount.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.