How self-employed tax works
- You pay both the employee and employer CPP: 11.9% on earnings from $3,500 to $74,600 and 8% CPP2 up to $85,000 (2026).
- The employer half and the enhanced portion are deducted from income; the employee base half is a tax credit.
- No EI unless you opt in to special benefits.
- If you owe more than $3,000 in tax in 2026 and either of the two previous years, the CRA asks for quarterly instalments (March 15, June 15, September 15, December 15).
Quebec residents pay QPP and QPIP instead and file a separate provincial return; this calculator excludes Quebec.
FAQ
How much tax does a self-employed person pay on $80,000 in Ontario?
About $22,100 in total: roughly $8,900 of CPP (both halves plus CPP2) and $13,200 of income tax.
Sources (checked Nov 6, 2026): CRA tax rates and income brackets 2026; T4127 Payroll Deductions Formulas (2026); provincial budgets 2026. CRA, CPP contributions for self-employed (2026).