Business plan

Self-employed tax (T2125) calculator

Net business income to take-home for sole proprietors and freelancers: personal tax plus both halves of CPP, by province.

Your self-employed year (T2125)

Business revenue ($/yr)Business expenses ($/yr)Other personal income ($/yr)Province

The bite

Net self-employment income: $100,000.00
Income tax: $19,715.43
CPP — both halves: $9,292.90
Total tax + CPP: $29,008.33
You keep: $70,991.67
Effective rate on net income: 29.0%

Sole proprietors report on form T2125 and pay personal rates on net income, plus both halves of CPP (11.9% to the first ceiling). No EI unless you opt in. Owing more than $3,000 (Quebec: $1,800) two years running means quarterly instalments. 2026 figures; deductions like home-office and CCA (see the toolkit) reduce the net income entered here.

Not financial, tax, or investment advice.