Self-employed in Canada
How much should I set aside for taxes?
Skip the 25 to 30% guess. Enter your income and province to see the real percentage of each payment to save for income tax and CPP as a self-employed Canadian.
- Your real percentage, not a rule of thumb
- Income tax plus both halves of CPP
- Accurate for your province, 2026 rates
Tax Set-Aside Calculator
How much of each payment to save for the CRA
Your revenue minus business expenses, for the whole year.
A salaried job or other income pushes your self-employment income into higher tax brackets, so set-aside goes up.
Enter your expected income to see how much of each payment to set aside.
Why a percentage beats a rule of thumb
“Set aside 25 to 30%” is everywhere because it is easy to remember, not because it is right for you. It is an average across incomes and provinces, and averages hide the two things that actually move your number: which tax brackets your income lands in, and CPP.
As a self-employed person you pay both the employee and employer halves of CPP, 11.9% of your net income between $3,500 and the yearly maximum. That alone is close to the entire “rule of thumb” before a dollar of income tax is added. It is why a realistic set-aside for many people sits above 30%, not below it, once income climbs.
The fix is boring and it works: move your set-aside percentage into a separate account every time you get paid. If your tax owing is likely to pass $3,000, the CRA will also want quarterly instalments, and money already set aside makes those a non-event. For the full tax picture, use our self-employment tax calculator.
Frequently asked questions
How much should I set aside for taxes when self-employed in Canada?
The common rule of thumb is 25 to 30% of your net income, but the honest answer depends on your province, your total income, and CPP. Someone earning $40,000 in Alberta sets aside a very different amount than someone earning $120,000 in Quebec. This calculator gives you your personal percentage instead of an average, by running your income through the real federal and provincial brackets plus self-employed CPP.
Why is the percentage higher than I expected?
Because self-employed Canadians pay both halves of CPP, 11.9% on income between $3,500 and the yearly maximum. That is on top of income tax, and it is the piece people forget when they only budget for the tax brackets. It is often the single biggest reason a set-aside number comes in higher than the 25% rule of thumb.
Does other income change how much I set aside?
Yes, a lot. If you also have a salaried job, that income fills up your lower tax brackets first, so your self-employment income is taxed at a higher marginal rate on top. Adding your other income to the calculator raises the set-aside percentage to reflect that, which is why a side hustle on top of a good salary needs more set aside than the same side hustle alone.
Where should I keep the money I set aside?
In a separate account from the one you spend from, moved over the day each payment lands rather than at year end. A high-interest savings account works well. Keeping it separate removes the temptation to treat tax money as income, which is the trap that turns an affordable tax bill into a scramble every April.
Do I have to pay tax instalments during the year?
If your net tax owing is over $3,000 (over $1,800 in Quebec) this year and in one of the two years before, the CRA asks you to pay in quarterly instalments rather than one lump sum. Setting money aside as you earn makes those instalments painless. See our guide to CRA tax instalments for the dates and thresholds.
Keep going
This calculator is for information only and is not tax advice. It estimates 2026 federal and provincial income tax plus CPP/QPP on self-employment income. Verify with the CRA or a qualified professional.