Self-employed guide Canada
Guide self-employed readers through tax, CPP, deductions, instalments, and records.
Guide self-employed readers through tax, CPP, deductions, instalments, and records.
Guide self-employed readers through tax, CPP, deductions, instalments, and records.
Side hustle, freelance, gig worker, contractor, or full-time consultant — if you earned income outside a T4 in 2025, you file a T2125 with your T1 return. You also pay both halves of CPP (11.9%), might owe GST/HST, and have an extended June 15, 2026 filing deadline (with balance owing still due April 30). Here's everything you need.
| Item | 2026 amount | Why it matters |
|---|---|---|
| CPP rate (self-employed) | 11.9% | Both employee + employer share on net business income $3,500–$74,599 |
| CPP2 rate | 8% | Additional contribution between $74,599 and $81,200 |
| Max CPP contribution | $8,460.90 | Half is a deduction, half is a tax credit |
| GST/HST registration threshold | $30,000 | Trailing 12 months — register the next quarter once you cross |
| Per-km vehicle rate (first 5,000 km) | $0.72 | Simplified deduction — no logbook of actual costs needed |
| Per-km vehicle rate (after 5,000 km) | $0.66 | Drops 6¢ after the first 5,000 business km |
| Filing deadline | June 15, 2026 | Extended for self-employed AND their spouse |
| Balance owing deadline | April 30, 2026 | Same as everyone else — interest at ~8% after |
Anything you spent to earn business income is deductible — within reason. Keep every receipt for 6 years. Pair with the self-employed tax calculator to see your refund.
Advertising
Online ads, business cards, listings
Meals & entertainment
50% deductible only — food + drink with clients
Insurance (business)
Liability, contents — not personal
Interest & bank charges
Business loans/accounts only
Professional fees
Accounting, legal, consulting
Office supplies
Stationery, software subs, printer ink
Telephone & utilities
Business portion only
Travel
Mileage at $0.72/km first 5,000 km
Motor vehicle
Business-use % × actual costs OR per-km
Home office (BIA)
% of home expenses if principal place of biz
Wages & subcontractors
T4A required for subs paid >$500
Bank/payment processing fees
Stripe, PayPal, Square fees
Everything Canadian freelancers, gig workers, and contractors need for 2026 tax season: the T2125 walkthrough, self-employed CPP rules, GST/HST registration thresholds, home office deduction, and the April 30 vs June 15 deadline split.
Q
How do I file taxes as self-employed in Canada?
A
File a regular T1 return with a T2125 attached (Statement of Business Activities) listing your gross revenue, deductible expenses, and net business income. You pay regular income tax plus 11.9% CPP on net income above $3,500. Filing deadline is June 15, 2026 but any balance owing is due April 30, 2026.
Last reviewed 2026-04-21