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If you work for yourself, you report business income and expenses on your own return and pay both halves of CPP. The return is due June 15, but any tax you owe is still due April 30. Register for GST/HST once sales pass $30,000.
When you are self-employed in Canada, nobody withholds tax from your income. You report your net business income, pay both halves of CPP (11.9% of net earnings between $3,500 and $74,600 in 2026) and pay tax by instalments if the CRA asks. Your return is due June 15, but any balance is due April 30. You must register for GST/HST once taxable sales pass $30,000.
What do you report when you’re self-employed?
You report your business income and subtract what it cost you to earn it. What’s left, your net business income, is taxed at your personal rates along with any other income you have. Keep receipts and invoices for every cost you claim, because the CRA can ask to see them for years afterwards.
The self-employed tax calculator turns net income into tax and CPP for your province. Our article on business expense deductions covers what usually qualifies, and the self-employed expenses checklist is handy when you’re sorting a year of receipts. Working from a spare room? The home office deduction calculator estimates that claim.
How does CPP work when you’re self-employed?
An employee pays half of the CPP contribution and the employer pays the other half. When you work for yourself, you pay both. For 2026 the combined rate is 11.9% of net earnings between $3,500 and $74,600, which comes to as much as $8,460.90. The limits page shows the employee figures for comparison.
A quick ballpark: Priya, a freelance designer in Halifax, nets $40,000. Her CPP is 11.9% of $36,500 (that’s $40,000 less the $3,500 exemption), or about $4,343.50. That’s before any income tax, so set some money aside as the cheques come in rather than in April.
When do tax instalments apply?
Because no one withholds tax, the CRA may ask you to pay in four instalments, due March 15, June 15, September 15 and December 15. The tax instalments calculator checks if you must pay and splits the year into four payments.
Your return is due June 15, but the balance is due April 30. That gap catches plenty of first-year freelancers. The tax calendar puts both dates side by side. If the bill lands and the money isn’t there, the article on what to do when you can’t pay a CRA balance owing covers your options.
When do you have to register for GST or HST?
Once your taxable sales pass $30,000 you have to register, charge the tax and file returns. The CRA’s general information for GST/HST registrants defines the small supplier limit.
Below that registering is optional, and plenty of freelancers register early anyway, since you can’t claim back the tax you pay on a laptop or a software subscription until you’re in the system. The GST, HST, PST and QST guide has the whole picture.
Should you be a sole proprietor or a corporation?
A sole proprietor and the business are one taxpayer. A corporation is a separate taxpayer with its own return and its own rates, and it brings extra filing and payroll work that you can’t skip. The corporate tax calculator shows the difference in tax, the salary vs dividends calculator compares ways to pay yourself from a company, and the payroll remittance calculator covers what an employer sends the CRA.
Is a side hustle self-employment?
Often it is, once it earns money. The article on side hustle or hobby tax explains how the line gets drawn, and the side hustle tax calculator estimates the bill.
What do new freelancers usually miss?
A few things come up again and again. Mixing personal and business spending makes receipts hard to sort. The tax bill arrives in one lump if you didn’t set money aside. And the June 15 filing date doesn’t move the payment date.
More for small businesses
- How Income Tax for Self Employed People Works in Canada
Your business income is taxed after expenses, plus both halves of CPP. See the filing dates, instalments and an $80,000 Ontario example
- Corporate Tax Rate in Canada for 2026
Federal 15%, small business 9% and combined provincial corporate tax totals, with a worked example for a $600,000 profit in BC
- Corporate Tax Rates by Country and How Canada Compares
OECD averages, Canada's 15% federal rate, provincial add-ons and a $300,000 profit example show how corporate rates by country compare
- Associated Corporations and the CRA Small Business Limit
Companies under common control share a single $500,000 small business limit. See who counts as associated, how Schedule 23 splits it and the cost
- Uber Tax Summary in Canada: What Drivers Must Report
What an Uber driver reports for tax: all fares and tips as business income, GST/HST from the first fare and a $40,000 example
- Restaurant Taxes in Canada: What an Owner Pays
Restaurant owners collect GST/HST on meals, deal with tip rules and pay payroll costs: an $80 Ontario meal carries $10.40 of HST, for example
- What Counts as Office Expenses for a Small Business
Which office expenses go on form T2125, what counts as capital instead, and what a $1,500 claim really saves a self-employed person
- Self Employed Tax Deductions in Canada Explained
See which self employed tax deductions Canada allows, how the home office and 50% meals rules work and what $6,000 of expenses saves on tax
Frequently asked questions
When is the tax return due if I am self-employed?
The filing deadline is June 15 for you and your spouse. Any tax you owe is still due April 30, so filing late in June does not delay the payment.
How much CPP do self-employed people pay?
You pay both the employee and the employer share. For 2026 that is 11.9% of net earnings between $3,500 and $74,600, up to $8,460.90.
Do I need to register for GST/HST?
Once your taxable sales pass $30,000 you must register. Below that it is optional, and some people register earlier to claim back tax on costs.
Should I pay tax instalments?
Nobody withholds tax from business income, so the CRA may ask for four payments a year. The instalments calculator checks whether the rule applies to you.
Is a sole proprietor taxed differently from a corporation?
A sole proprietor and the business are one taxpayer, so the income lands on your personal return. A corporation is a separate taxpayer with its own return and rates, plus extra filing and payroll work.
What if I can't pay my tax on April 30?
Contact the CRA early. Interest builds on a balance, so ask about a payment arrangement rather than ignoring it. Filing on time still matters even when the payment is short.