Use our income tax calculator if you receive income from sources other than traditional employment. This tool helps you calculate taxes in Canada and figure out how much you need to pay on your self-employment income, capital gains, eligible and non-eligible dividends, and other forms of income as these types of earnings are taxed differently. Our self-employed tax calculator takes into account various deductions and tax credits and can be helpful in planning for your income tax obligations.
Enter the income you received from employment, eligible and non-eligible dividends, capital gains, and other sources to see how to calculate self-employed tax in each province and territory. The self-employed tax calculator will also show you your average tax rate and marginal tax rate.
Usage of the Tax Calculator
- Select the tax year: the tax calculator is updated with 2023 federal and provincial taxes
- Select the province: the calculator is updated with tax rules and regulations for all provinces and territories including:
- British Columbia
- Northwest Territories
- New Brunswick
- Nova Scotia
- Prince Edward Islands
- Enter your income from all sources: enter your income to the proper fields:
- employment income
- self-employment income
- capital gains
- eligible dividends
- ineligible dividends
- other income
- Based on your inputs the calculator estimates your payable taxes. The calculations are approximate and include the following non-refundable tax credits:
- the basic personal tax amount
- EI premiums
- Canada employment tax
- If you have contributed to your RRSP during the tax year, enter the amount to the calculator. This shows how your contribution reduces your taxes. Note that you can’t contribute more than your contribution limit, what you can see on your Notice of Assessment.
- If you have already paid taxes during the year (e.g. taxes withheld from your payslip), enter that amount into the tax calculator, and it will show you how much you still owe or how much refund you can expect.
Explanation of income types
Employment income: This type of income is defined as the money received by an individual from their employer. You can use an online payroll calculator to determine how much you still owe on standard employment income, or how much you may receive back.
Self-employment income: Self-employment income includes income from any activity you carry out for profit or with a reasonable expectation of profit. You may have self-employment income from a business, a profession, a commission, farming, or fishing. Self-employment income is separate and distinct from employment income that you receive from another business.
Capital gains: Capital gain is an increase in the value of an investment (such as stocks or shares in a mutual fund or exchange-traded fund) or real estate holding from the original purchase price.
Eligible dividends: Any taxable dividend paid to a resident of Canada by a Canadian corporation that is designated by that corporation to be an eligible dividend. Most dividends paid by public corporations are eligible dividends.
Ineligible dividends: non-eligible – or ineligible – dividends are any dividends issued by a Canadian corporation, public or private, which are not eligible for the eligible dividend tax credit.
Reduce your taxes
There are ways to reduce your tax liability. One of the most common is through RRSP deduction. Our RRSP contribution calculator helps you understand how much you contribute and how much that reduces your tax liability. Simply enter the amount of RRSP contribution that you paid during the tax year, and our RRSP calculator does the rest.
In some cases, you may have already paid income taxes throughout the year. Our income tax calculator helps identify what you’ve already paid and how much this reduces the amount you still have to pay. If you or your employer have already deducted taxes during the tax year, this can be beneficial to you at tax time.
- If you are planning to move to India and you want to know that how much taxes you’ll need to pay, use this Indian Income Tax Calculator.