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Business revenue minus business expenses, before CPP.
Self-Employed Tax Estimate
CPP (both halves)
Base CPP (11.90% to $74,600)
CPP2 (8.00%, $74,600–$85,000)
Total CPP owing
Income tax
Net income
CPP deduction (employer half)
Taxable income
Income tax owed
Total
Tax + CPP combined
Suggested quarterly instalment
Frequently asked questions
Why do self-employed workers pay double CPP?
Employees split CPP with an employer. Self-employed individuals are both employer and employee, so they pay both halves — 11.90% up to the YMPE and 8.00% between the YMPE ($74,600) and YAMPE ($85,000) for 2026.
Why does the CPP deduction reduce taxable income?
CRA treats the employer-equivalent half of your CPP contribution as a business deduction, while the employee-equivalent half is claimed as a non-refundable credit. This tool applies the deduction to keep the estimate simple.
Do I really need to pay quarterly instalments?
If you expect to owe more than $3,000 in net tax for two consecutive years (including CPP), CRA generally requires quarterly instalments rather than one lump sum at filing.