What do Ontario trades actually owe in tax?
A free 2026 calculator built for self-employed Ontario contractors — not generic freelancers. It counts the CPP hit the trades always forget, and points you at the truck, tool and home-office write-offs a plain tax calculator never mentions.
Ontario adds two things most provinces don't: a surtax on higher provincial tax, and a Health Premium. Both are built into the number below.
On $80,000 net self-employment income, Ontario, 2026:
$23,072
estimated income tax + CPP for the year
Set aside $1,923/month and you will not be caught short at filing.
See exactly where every dollar goes
You have the number. The 2026 Tax-Year Pass shows the working behind it:
- Line-by-line breakdown with the CRA rule cited for each amount
- An accountant-ready PDF of your numbers to hand over or keep
- The incorporation break-even tool — should you incorporate, and what it saves
- Your numbers saved on this site through the whole filing season
$5 · one time · covers the entire 2026 tax year
Get the 2026 Pass →Already paid? Restore your pass →Checking for an existing pass…
What this assumes (read before you rely on it)
- Ontario resident, 2026 tax year, self-employed (sole proprietor) income only.
- Only the basic personal amount is credited — no spousal, tuition, or other credits.
- The federal BPA high-income phase-down above $181,440 is not modelled; estimates there run slightly low.
- Half of CPP contributions are treated as deductible (the standard self-employed treatment, slightly simplified).
- No Quebec, no capital gains, no employment income mixed in.
- This is an estimate for planning, not a filing calculation. Confirm with your accountant.
WSIB and your taxes
In Ontario construction, WSIB coverage is mandatory for most independent operators and sole proprietors — not only those with employees. Premiums are a deductible business expense.
The write-offs a generic calculator misses
- Writing off your work truckCCA Class 10 — federal, applies in Ontario too.
- Tools and equipmentClass 12 vs Class 8: the $500 line that changes everything.
- The home office deductionThe percentage-of-home method, done right.
- The 11.9% CPP surpriseWhy your first year self-employed costs more than you planned.
- The $30,000 HST decisionWhen you must register — a federal rule.
Common questions
How much tax does a self-employed contractor pay in Ontario?
In Ontario for 2026, a self-employed contractor pays federal income tax, Ontario provincial income tax, and both halves of CPP (11.9% up to the maximum). Ontario also adds a surtax and a health premium at higher incomes. Enter your numbers above for the exact total.
How much should I set aside for taxes as a contractor?
A safe rule for most self-employed trades is 25–30% of net income (after expenses), set aside monthly. The calculator on this page gives you the exact figure for your province and your numbers rather than a rule of thumb.
Do I have to charge HST?
You must register for and charge GST/HST once your gross revenue passes $30,000 over four consecutive calendar quarters. This is a federal rule and applies in every province.