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Canada Contractor Tax Calculator

Calculate Australian contractor/sole trader tax including income tax, Medicare levy, GST obligations, and deductible expenses for 2025-26.

Regional Rule Context

JurisdictionCanada
CurrencyCA$ (CAD)
Effective fromJan 1, 2025
Version1.0
Last reviewedMar 1, 2026
Next reviewJul 1, 2026
Source: Canada Revenue Agency (CRA)

Canada Rates and Rules

Minimum Wage (Federal)CA$17.3/hr
CPP Rate (Employee)5.95%
EI Rate (Employee)1.64%
Basic Personal Amount$16,129
CPP Max Earnings$71,300
EI Max Insurable$65,700
Standard Hours40hrs/week

Federal Tax Brackets

$0 - $57,37515%
$57,376 - $114,75020.5%
$114,751 - $158,46826%
$158,469 - $220,00029%
$220,001+33%

Enter Values

Total invoiced amount (ex-GST)

Business expenses you can claim

Result

Enter values above and click Calculate to see your result.

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Estimate tax obligations for self-employed contractors in Canada. Contractors pay both employee and employer portions of CPP and are not covered by EI.

Disclaimer: This calculator uses publicly available rules effective as of Jan 1, 2025 (version 1.0). Results are for informational purposes only. Always verify with official sources or a qualified professional. Last reviewed: Mar 1, 2026.

Formula

Net Income = Gross Income - Expenses - Income Tax - Medicare Levy

Contractors pay tax on their net business income (gross minus deductible expenses). GST registration is required if turnover exceeds $75,000.

Canada FAQs

Do contractors pay CPP?

Yes. Self-employed individuals pay both the employee and employer portions of CPP, totalling 11.90% on pensionable earnings.

Do contractors pay EI?

EI is not mandatory for self-employed individuals, but you can opt in to receive special benefits (maternity, parental, sickness, compassionate care).

Do I need to charge GST/HST?

You must register for and charge GST/HST once your revenue exceeds $30,000 in four consecutive calendar quarters.

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