Self-Employed Taxes in Canada: Which Forms, Rates and Dates (2026)

Short answer: Self-employed taxes in Canada come in three parts: income tax on your net profit (federal rates of 14% to 33% for 2026, plus provincial tax), both halves of the Canada Pension Plan (11.9% of net self-employment income between $3,500 and $74,600, plus 8% CPP2 up to $85,000), and GST/HST once your revenue passes $30,000. It all goes on one personal return: the T1, with Form T2125 for your business income and Schedule 8 for CPP. For the 2026 tax year, file by June 15, 2027, but pay by April 30, 2027.

These are the Canada Revenue Agency (CRA) rules and figures for the 2026 tax year, the return you file in 2027, for sole proprietors, freelancers and contractors who have not incorporated. This page is the map: each section gives the answer and links to the guide that covers it in full. If you are still setting up, start with how to be self-employed in Canada.

What taxes does a self-employed person pay in Canada?

You pay income tax and CPP on your net business profit, and you collect GST/HST from clients once you are registered.

Obligation	What it is	2026 figure	Full guide
Income tax	Federal plus provincial tax on net profit (income minus deductible expenses)	Federal 14% to 33%; provincial rates on top	Canada tax brackets 2026
Canada Pension Plan	Both the employee and the employer share	11.9% from $3,500 to $74,600, plus 8% CPP2 to $85,000; maximum $9,292.90	CPP for the self-employed
GST/HST	Sales tax you collect from clients and send to the CRA	Register once revenue passes $30,000	Register for GST/HST
Employment Insurance	Not automatic; optional cover for special benefits	Only if you opt in	EI for the self-employed

What about “small business tax”? The 9% federal small business rate you may have read about applies to a Canadian-controlled private corporation, not to you as a sole proprietor. Your business profit is personal income taxed at your personal rates, and the trade-off is explained in sole proprietor vs corporation. In Quebec, the Quebec Pension Plan (QPP) replaces CPP and you file a provincial return with Revenu Québec as well.

Which tax forms do self-employed people file?

A self-employed person outside Quebec files one return, the T1, with Form T2125 and Schedule 8 attached; GST/HST, if you are registered, is a separate return.

Form	What it does	Who files it
T1 Income Tax and Benefit Return	Your personal return. Gross business income goes on line 13499 and net on line 13500 (lines 13699 and 13700 for professional income)	Everyone with self-employment income
Form T2125, Statement of Business or Professional Activities	Gross income (line 8299) minus expenses gives net business income (line 9946)	Every sole proprietor, one form per business
Schedule 8, CPP contributions on self-employment	Works out CPP on your net income; the amount owing goes on line 42100, part is deducted on line 22200 and part claimed as a credit on line 31000	Self-employed residents outside Quebec
Schedule 13	EI premiums on self-employment earnings	Only if you opted in to EI special benefits
GST/HST return (GST34 or GST/HST NETFILE)	Tax collected minus input tax credits	Only if registered for GST/HST

Quebec residents report QPP on their Revenu Québec return instead of Schedule 8. If a client sent you a T4A slip, those fees are still business income on the T2125 and do not replace it; see T4A for contractors. The T2125 is the form that takes the most work, and Form T2125 explained walks it line by line.

How do you file a self-employed tax return?

Total the year’s business income and expenses, complete the T2125, let Schedule 8 work out CPP, and file the T1 online or through an accountant.

1. Total your income from your invoices for the calendar year, leaving out any GST/HST you collected.
2. Total your deductible expenses from your receipts and logbook.
3. Complete Form T2125. Net income from line 9946 carries onto your T1.
4. Complete Schedule 8 so CPP is calculated on that net income.
5. File the T1 with certified tax software (NETFILE) or through an accountant, by June 15.
6. Pay the balance by April 30, even though the return is due later. Payment options are in how to pay CRA tax owing.

When are self-employed taxes due?

For the 2026 tax year, you file by June 15, 2027 but pay any balance by April 30, 2027; interest runs on anything unpaid after April 30.

Date	What is due
March 15, June 15, September 15, December 15, 2026	Income tax instalments, if the CRA requires them
April 30, 2027	Payment of any 2026 balance owing
June 15, 2027	Filing your 2026 return (you or your spouse or common-law partner self-employed)

You have to pay instalments for 2026 if your net tax owing is more than $3,000 ($1,800 in Quebec) in 2026 and in either 2025 or 2024; the CRA sends reminders with suggested amounts. The dates, the weekend rule and penalties are in the self-employed tax deadline guide, and who pays instalments and how much is in CRA tax instalments.

How much CPP do you pay when you are self-employed?

You pay 11.9% of net self-employment income between $3,500 and $74,600, up to $8,460.90, plus 8% CPP2 on income between $74,600 and $85,000, up to $832, for a 2026 maximum of $9,292.90.

That is both the employee and the employer share, because nobody pays half for you. Part of it is a deduction from income and part is a tax credit, which softens the cost. At $50,000 of net self-employment income, CPP is ($50,000 − $3,500) × 11.9% = $5,533.50. The split between deduction and credit, and what happens if you also have a job, are in CPP for the self-employed.

How much tax will you pay on self-employment income?

For 2026, an Ontario sole proprietor with no other income pays about $8,565 in income tax, the Ontario Health Premium and CPP on $40,000 of net profit (21%), about $18,298 on $70,000 (26%) and about $28,338 on $100,000 (28%).

Those totals come from the worked calculations in the self-employed tax calculator, which also gives Alberta figures. The brackets behind them are on the CRA’s 2026 tax rates page. A practical habit is to move 25% to 30% of every payment into a separate account, plus all the GST/HST you collect, which is not yours to spend.

What small business tax claims can you make?

You can deduct any reasonable expense you incur to earn business income, on Form T2125, limited to the business-use share of anything you also use personally.

Common claims are supplies, advertising, phone and internet (business share), professional fees, insurance, rent, business-use-of-home, motor vehicle expenses, and capital cost allowance on equipment; meals and entertainment are limited to 50%. Each guide covers one area:

• Self-employed expenses and receipts: the full deductions checklist and the six-year record rule.
• Business-use-of-home expenses: the home office percentage and its limits.
• Motor vehicle expenses: business kilometres, the logbook and line 9281.

When do you have to register for GST/HST?

When your worldwide taxable revenue passes $30,000 in a single calendar quarter or over four consecutive calendar quarters; taxi and ride-share drivers register from their first fare.

You then charge GST/HST from your effective registration date, including on the sale that took you over, per the CRA’s when to register page. You can also register voluntarily to claim input tax credits. The tax goes on your invoices as its own line (how to invoice in Canada) and onto a separate return (how to file a GST/HST return).

…and where does Keel fit?

Keel: Invoice Maker & Receipts, an iPhone app by Ilura Technology OÜ, keeps the records a T2125 is built from: invoices as PDFs, receipts and expenses, and business mileage records, each kept under its job, plus estimates that become invoices in one tap and “who owes you” reminder drafts you review and send yourself. Records stay on the iPhone, with no account, no bank connection and no cloud sync; the App Store privacy label reads “Data Not Collected”. At year end the Accountant Pack exports the year as a CSV plus a one-page summary PDF, built from an append-only, hash-chained ledger, and receipts are read on the device with Apple Intelligence as you capture them.

Keel does not file your return or GST/HST returns, connect to the CRA or calculate the tax you owe; you or your accountant still do that. It is free with no invoice limit (free invoices carry a small “Made with Keel” footer), and Keel Lifetime, a one-time purchase ($249.99 USD; local price on the App Store), adds accountant-ready exports and advanced reports, plus custom branding, a signature and premium templates. Keel on the App Store.

Frequently asked questions

Which tax form do I use if I am self-employed in Canada? Form T2125, Statement of Business or Professional Activities, filed with your T1 personal return. If you live outside Quebec you also complete Schedule 8 for CPP on your self-employment income. A separate GST/HST return applies only if you are registered, and Quebec residents file a Revenu Québec return as well.

When are self-employed taxes due in Canada? For the 2026 tax year, the return is due June 15, 2027, but any balance owing must be paid by April 30, 2027, or the CRA charges compound daily interest from May 1. The June 15 date applies if you or your spouse or common-law partner were self-employed. Instalments, if you owe them, fall on March 15, June 15, September 15 and December 15.

How much should I set aside for taxes as a freelancer? A common habit is 25% to 30% of every payment for income tax and CPP, plus all the GST/HST you collect if you are registered. That is a rule of thumb, not a CRA rule: at $40,000 of net profit in Ontario the 2026 bill is about 21% of profit, and at $100,000 about 28%. Run your own figures with the tax calculator.

Do I need a business number to be self-employed? Not to earn self-employment income as a sole proprietor; you can trade under your own name and report on the T2125 without one. You get a business number (BN) when you register for GST/HST, open a payroll account to hire employees, or open another CRA program account. Your GST/HST number is the BN plus RT0001.

What happens if I file late? If you owe a balance and file after the deadline, the CRA charges a late-filing penalty of 5% of the balance plus 1% for each full month the return is late, up to 12 months, on top of interest. Repeat late filing within the previous three years can roughly double those rates. Filing on time when you cannot pay in full avoids the penalty and leaves only interest.

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This article is general information, not tax advice. Consult a qualified accountant or tax professional.