# Self-Employed Taxes in Canada: CPP, GST/HST, Instalments > How self-employed Canadians are taxed in 2026: income tax, both halves of CPP, GST/HST registration, instalments, expenses and the June 15 deadline. Source: https://trykosh.com/learn/self-employed-taxes-canada Guide - Income tax # Self-employed taxes in Canada: what you owe and when When you work for yourself, nobody withholds tax for you. You pay income tax, both halves of CPP, possibly GST/HST, and, once your bill is big enough, quarterly instalments. Here's how it all fits together for 2026. Updated October 31, 20264 min readBy the Kosh team On this page[What you pay as a sole proprietor](#what-you-pay)[Worked example](#example)[Deadlines: June 15 vs April 30](#deadlines)[Do I have to pay tax instalments?](#instalments)[When do I need to register for GST/HST?](#gst-hst)[What can I deduct?](#expenses)[Set money aside every time you're paid](#set-aside)[Should I incorporate?](#incorporate)[FAQs](#faq) ## What you pay as a sole proprietor - **Income tax** on net business income (revenue minus expenses), at the same federal and provincial rates as anyone else. - **CPP, both halves**: 11.9% on net self-employment earnings between $3,500 and $74,600, up to $8,460.90 in 2026, plus CPP2 at 8% on earnings from $74,600 to $85,000, up to $832. Part is deducted from income and part earns a credit. - **No EI** unless you opt in to the EI special benefits program for self-employed people. - **GST/HST** on your sales once you pass the small supplier threshold. ## Worked example A consultant in Ontario with $80,000 of net self-employment income and no other income pays about $13,572 of income tax and $8,461 of CPP for 2026, leaving about $57,967 (Kosh estimate). The CPP is the part that surprises people who leave a salaried job, where the employer paid half. ## Deadlines: June 15 vs April 30 You (and your spouse or common-law partner) can **file** by June 15, but any **balance owing is due April 30**. Interest runs from May 1 on anything unpaid. Treat April 30 as your real deadline and June 15 as time to finish the paperwork. ## Do I have to pay tax instalments? You must pay quarterly instalments if your net tax owing is more than $3,000 ($1,800 in Quebec) in the current year and in either of the two previous years. Instalments are due March 15, June 15, September 15 and December 15. The CRA sends reminders with suggested amounts. ## When do I need to register for GST/HST? You're a small supplier, and don't have to register, while your taxable revenue is $30,000 or less in a single calendar quarter and over the last four consecutive quarters. Once you go over, you must register (within 29 days when a single quarter takes you over), charge GST/HST and file returns. Taxi and commercial ride-share drivers must register from their first ride. Registering voluntarily lets you claim input tax credits on the GST/HST you pay on business costs. ## What can I deduct? - Equipment, software, subscriptions and supplies used for the business (larger assets through capital cost allowance). - A business-use share of home costs (rent, utilities, internet) if your home is your main place of business. - Vehicle costs for the business share of kilometres, backed by a log. - Professional fees, insurance, advertising, phone and business travel. - The employer half of your CPP, which is deducted rather than credited. You report it all on Form T2125 with your personal return. Keep receipts, and keep business and personal money in separate accounts; it makes both the return and any CRA review much simpler. ## Set money aside every time you're paid One habit prevents most problems: move a fixed share of every payment into a separate savings account for income tax, CPP and any GST/HST you collected. Your marginal rate plus CPP is a sensible upper bound. RRSP contributions reduce the bill, and a high-interest savings account or TFSA is a good place for the money until it's due. ## Should I incorporate? Incorporating can defer tax when you earn well beyond what you need to live on, but it adds accounting costs, a separate corporate return and complex rules for paying yourself. It's a conversation for an accountant once profits clearly exceed your spending, not before. [Free tool**Income tax calculator**Work out your 2026 federal and provincial income tax, CPP and EI, and what you keep, in any province or territory. Add self-employment income, capital gains and RRSP contributions to see how each one changes the bill.](/tools/income-tax-calculator)[Free tool**RRSP tax refund calculator**Find out how much tax an RRSP contribution saves you this year, and what it really costs once the refund comes back.](/tools/rrsp-calculator)[Free tool**CPP calculator**Enter your CPP estimate at 65 and see what you'd get starting anywhere from 60 to 70, and the age at which waiting pays off.](/tools/cpp-calculator) **Where Kosh fits** Kosh reads your business and personal bank statements, separates client payments from personal spending, estimates income tax and CPP as the year goes, and reminds you before each instalment and the April 30 payment deadline. ## Frequently asked questions How much tax do self-employed people pay in Canada? The same income tax rates as employees on net business income, plus both halves of CPP: 11.9% on earnings between $3,500 and $74,600 in 2026, plus CPP2 on earnings up to $85,000. There is no withholding, so you pay at filing or through instalments. When is the tax deadline for self-employed Canadians? You can file until June 15, but any balance owing must be paid by April 30. Interest is charged on unpaid amounts from May 1. Do I need to register for GST/HST? Once your taxable revenue is more than $30,000 in a calendar quarter or over the last four consecutive quarters, you must register. Taxi and ride-share drivers must register from the start regardless of revenue. When do I have to pay tax instalments? If your net tax owing is more than $3,000 ($1,800 in Quebec) this year and in either of the two previous years. Instalments are due March 15, June 15, September 15 and December 15. Do self-employed people pay EI? No, unless they opt in to the EI special benefits program for self-employed people, which covers benefits such as maternity, parental and sickness benefits. ## Sources - [CRA: Paying your income tax by instalments](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/making-payments-individuals/paying-your-income-tax-instalments.html) - [CRA: RC4022, General Information for GST/HST Registrants](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4022/general-information-gst-hst-registrants.html) - [CRA: Register for a GST/HST account](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/account-register.html) - [CRA: T4127 Payroll Deductions Formulas](https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4127-payroll-deductions-formulas.html) Written by the Kosh team and checked against the rules in force on October 31, 2026. This guide is general information, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not registered with any Canadian securities regulator as an adviser or dealer, does not recommend specific securities, and does not hold your money or execute trades. Tax figures are estimates; confirm with the CRA or a qualified professional before acting. Investing carries risk. ## Upload your statement and Kosh does this for you. Kosh reads your bank, card and investment statements, estimates your federal and provincial tax and turns guides like this one into your own numbers and next steps. [Start free](/signup?via=learn-self-employed-taxes-canada)