Using Tables to Plan for Income Tax and Contributions
No income tax or contributions are withheld from self-employment income. We recommend planning for income tax and contributions year-round to avoid unpleasant surprises when you file your income tax return. The tables on this page are designed to help.
Unlike an employee, as a self-employed person you pay both the employee and employer portions of certain contributions.
Estimate tables: income tax and contributions
The tables below show the amounts of income tax and contributions payable based on whether all your income comes from self-employment or you have a combination of self-employment and employment income.
The tables on this page provide an estimate of how much you may have to pay when filing your tax return. These are not official amounts, as the income tax and contributions payable depend on multiple factors. The aim is to give you a general understanding of your tax obligations as a self-employed person. We recommend consulting a tax professional (such as an accountant or tax specialist) to get an accurate picture of your tax situation.
End of note
The tables below are based on income type.
Person who has only self-employment income
If all your income comes from self-employment, use the following tables to calculate the income tax and contributions payable.
Income tax calculation
| Taxable income | Provincial income tax | Federal income tax | Total | Average combined tax rate |
|---|---|---|---|---|
| $10,000 | $0 | $0 | $0 | 0% |
| $15,000 | $0 | $0 | $0 | 0% |
| $16,452 | $0 | $0 | $0 | 0% |
| $18,952 | $0 | $292 | $292 | 1.5% |
| $20,000 | $147 | $415 | $561 | 2.8% |
| $25,000 | $847 | $999 | $1,846 | 7.4% |
| $30,000 | $1,547 | $1,584 | $3,130 | 10.4% |
| $40,000 | $2,947 | $2,753 | $5,699 | 14.2% |
| $50,000 | $4,347 | $3,922 | $8,268 | 16.5% |
| $54,345 | $4,955 | $4,430 | $9,385 | 17.3% |
| $58,523 | $5,749 | $4,918 | $10,667 | 18.2% |
| $60,000 | $6,029 | $5,171 | $11,200 | 18.7% |
| $70,000 | $7,929 | $6,883 | $14,812 | 21.2% |
| $80,000 | $9,829 | $8,594 | $18,424 | 23.0% |
| $100,000 | $13,629 | $12,018 | $25,647 | 25.6% |
| $108,680 | $15,279 | $13,504 | $28,782 | 26.5% |
| $117,045 | $17,286 | $14,936 | $32,222 | 27.5% |
| $125,000 | $19,195 | $16,663 | $35,858 | 28.7% |
| $132,245 | $20,934 | $18,236 | $39,170 | 29.6% |
| $181,440 | $33,602 | $28,916 | $62,518 | 34.5% |
| $200,000 | $38,381 | $33,456 | $71,837 | 35.9% |
| $258,482 | $53,440 | $47,761 | $101,202 | 39.2% |
Contributions calculation
| Net business income | QPP contributions | QPIP premiums | Contributions to the health services fund | Total contributions |
|---|---|---|---|---|
| $10,000 | $819 | $76 | $0 | $895 |
| $15,000 | $1,449 | $115 | $0 | $1,564 |
| $16,452 | $1,632 | $126 | $0 | $1,758 |
| $18,952 | $1,947 | $145 | $5 | $2,097 |
| $20,000 | $2,079 | $153 | $15 | $2,247 |
| $25,000 | $2,709 | $191 | $65 | $2,965 |
| $30,000 | $3,339 | $229 | $115 | $3,683 |
| $40,000 | $4,599 | $306 | $150 | $5,055 |
| $50,000 | $5,859 | $382 | $150 | $6,391 |
| $54,345 | $6,406 | $415 | $150 | $6,971 |
| $58,523 | $6,933 | $447 | $150 | $7,530 |
| $60,000 | $7,119 | $458 | $150 | $7,727 |
| $70,000 | $8,379 | $535 | $206 | $9,120 |
| $80,000 | $9,391 | $611 | $306 | $10,308 |
| $100,000 | $9,791 | $764 | $506 | $11,061 |
| $108,680 | $9,791 | $787 | $593 | $11,171 |
| $117,045 | $9,791 | $787 | $677 | $11,255 |
| $125,000 | $9,791 | $787 | $756 | $11,334 |
| $132,245 | $9,791 | $787 | $829 | $11,407 |
| $181,440 | $9,791 | $787 | $1,000 | $11,578 |
| $200,000 | $9,791 | $787 | $1,000 | $11,578 |
| $258,482 | $9,791 | $787 | $1,000 | $11,578 |
Example of a person who has only self-employment income
Annette is self-employed and has no other income. She contributes to an RRSP. Her net business income is $60,000, but after her RRSP deduction for the year ($10,000), her taxable income is $50,000. She uses the tax table to determine the total income tax payable and finds that the average combined tax rate for $50,000 in taxble income is 16.5%.
Annette uses the contributions table to find the total contributions payable on $60,000 in net business income (not her taxable income).
Person with a combination of self-employment income and income from employment
If you have multiple income sources (employment income, investments, retirement pension, etc.), use the table below to calculate the income tax payable on your self-employment income and then add it to your other income.
The tax table below does not take contributions into account. You may already have paid the maximum amount of contributions for your employment income. For more information about contributions and premiums payable on self-employment and employment income, and the rates in effect, see Paying Contributions and Premiums.
End of note
| Taxable income | Provincial marginal tax rate | Federal marginal tax rate | Total |
|---|---|---|---|
| $0 to $16,452 | 0.00% | 0.00% | 0.00% |
| $16,453 to $18,952 | 0.00% | 11.69% | 11.69% |
| $18,953 to $54,345 | 14.00% | 11.69% | 25.69% |
| $54,346 to $58,523 | 19.00% | 11.69% | 30.69% |
| $58,524 to $108,680 | 19.00% | 17.12% | 36.12% |
| $108,681 to $117,045 | 24.00% | 17.12% | 41.12% |
| $117,046 to $132,245 | 24.00% | 21.71% | 45.71% |
| $132,246 to $181,440 | 25.75% | 21.71% | 47.46% |
| $181,441 to $258,482 | 25.75% | 24.47% | 50.22% |
| $258,483 and over | 25.75% | 27.56% | 53.31% |
Example of a person with both self-employment and employment income
Joseph is both an employee and self-employed. He earns $30,000 a year as an employee and expects his net business income from self-employment to be around $10,000.
Because source deductions have already been withheld from his employment income, he adds the provincial marginal tax rate and federal marginal tax rate to determine how much income tax he has to pay on his net business income. He looks at his taxable income bracket ($18,952 to $54,345) in the above table and then the federal and provincial tax rates. It shows that his income will be taxed at a total rate of 25.69%.
The contribution rates for self-employment depend on the taxation year for which you file your income tax return. For more information about contributions and rates, see Contributions and Premiums Payable by a Self-Employed Person or a Member of a Partnership.
Instalment payments by a self-employed person
Since no tax is withheld from the income you earn from self-employment, you may have to pay your income tax in instalments.
Instalment payments are partial payments you make quarterly to cover your income tax and, if your income tax payable is over a certain amount, contributions and premiums. If you're required to make instalment payments, you'll receive a letter. For more information, see Instalment Payments.