Ontario
Average rate
26%
Marginal rate
42%
Set aside for tax
$15,671
≈ $1,306/month
You keep about 74% of what you earn.
Set aside the other 26% — that's $1,306/month — and it's all there when the bill comes.
- Federal income tax
- $6,193 · 10% of income
- Provincial income tax
- $2,755 · 5% of income
- CPP (both halves)
- $6,724 · 11% of income
Your next $100 of profit is taxed at about 42% — so set aside roughly $42 of every extra $100 you earn.
2026 CRA quarterly instalment dates (if you owe more than $3,000): March 15, 2026 · June 15, 2026 · September 15, 2026 · December 15, 2026
Estimate only — full 2026 federal + provincial brackets, the Basic Personal Amount, and self-employed CPP/QPP (both halves). Not tax advice; confirm specifics with a Canadian accountant. Uses the same engine as the VRITTI app.
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Why “set aside 25–30%” is the wrong answer
Almost every guide tells self-employed Canadians to set aside a flat 25–30% of income for tax. It's a guess that under-funds higher earners by thousands and over-funds lower earners who barely owe anything after the Basic Personal Amount. Your real set-aside has three parts:
- Federal income tax — progressive 2026 brackets from 14%, after the federal Basic Personal Amount ($16,452).
- Provincial income tax — your province's own brackets and Basic Personal Amount on top.
- CPP (both halves) — self-employed Canadians pay 11.9% on net income from $3,500 up to $74,600 in 2026 (Quebec: QPP at 12.6%). Employees only pay half; you pay both.
A worked example: $60,000 of net income in Ontario comes to roughly $15,671 for the year — about $6,193 federal income tax, $2,755 Ontario income tax, and $6,724 in CPP — or about $1,306 a month. That's an effective rate near 26%, not a flat 25%.
And remember: GST/HST is separate. Once you cross $30,000 in revenue you must register and charge it, and that money is held in trust for the CRA — never part of your income-tax set-aside. Full set-aside guide, rates by province, or how to track HST/GST.
Set-aside by province (on $60k net, 2026)
Your province changes the number. Here's the 2026 self-employed set-aside on $60,000 of net income, lowest rate first — tap any province for its full brackets and rate-by-income table:
| Province | Set aside / yr | Per month | Rate |
|---|---|---|---|
| Nunavut | $14,823 | $1,235 | 25% |
| British Columbia | $15,634 | $1,303 | 26% |
| Ontario | $15,671 | $1,306 | 26% |
| Northwest Territories | $15,685 | $1,307 | 26% |
| Yukon | $15,742 | $1,312 | 26% |
| Alberta | $16,684 | $1,390 | 28% |
| Saskatchewan | $17,434 | $1,453 | 29% |
| New Brunswick | $17,792 | $1,483 | 30% |
| Manitoba | $17,945 | $1,495 | 30% |
| Newfoundland & Labrador | $18,170 | $1,514 | 30% |
| Prince Edward Island | $18,492 | $1,541 | 31% |
| Quebec | $18,573 | $1,548 | 31% |
| Nova Scotia | $19,332 | $1,611 | 32% |
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People also ask
How much tax should I set aside as a self-employed person in Canada?
It depends on your net income and province, but it is rarely the flat "25–30%" rule of thumb. Your real rate is your federal income-tax bracket plus your provincial bracket plus both halves of CPP (11.9% on net income above $3,500, up to $74,600). For example, $60,000 of net income in Ontario works out to roughly $15,671 for the year (about 26% of net income), or about $1,306 a month. Use the calculator above for your own number.
Does the set-aside include GST/HST?
No. Income tax and CPP are what you owe on your profit. GST/HST is separate — once your revenue passes $30,000 you must register and charge it, and that money is held in trust for the CRA. Keep it in a separate account from your income-tax set-aside.
Why do self-employed people pay more CPP?
Employees split CPP with their employer. Self-employed people are both, so you pay both halves — 11.9% combined in 2026 on net income between $3,500 and $74,600 (Quebec residents pay QPP at 12.6%). Half of it is deductible on your return.
When are the 2026 CRA instalment payments due?
If you owe more than $3,000 in tax (more than $1,800 in Quebec) in the current year and one of the two previous years, the CRA expects quarterly instalments: March 15, June 15, September 15, and December 15, 2026.
Do I need to register for GST/HST if I make under $30,000?
Not yet. You must register once your taxable revenue (sales, not profit) crosses $30,000 over four consecutive calendar quarters — or in a single quarter. Below that you are a "small supplier" and registration is optional, though registering voluntarily lets you claim Input Tax Credits on business expenses.
Do self-employed people pay EI in Canada?
No — EI is not automatically deducted for self-employed people, and most do not opt in. You do pay both halves of CPP (11.9% in 2026; QPP 12.6% in Quebec), which is the bigger surprise on your first self-employed return.
Is this calculator tax advice?
No. It is an estimate using the full 2026 federal and provincial brackets, the Basic Personal Amount, and self-employed CPP/QPP — accurate to within a few percent for most incomes — but it does not account for deductions, credits, or your full situation. Confirm specifics with a Canadian accountant.
VRITTI sets it aside for you.
This is the math behind VRITTI's Tax Jar. The app does it every time you log income — a growing CRA set-aside with your instalment dates, so the money's already there when the bill comes.
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