Updated Checked by the Tax-Services.ca editorial team How we check
Do you need an accountant if you’re self-employed? Not on day one, and maybe never. But once your net income tops the point where tax and CPP take a quarter of it, a good one usually earns their fee back in claims you’d have missed. In Ontario, $65,000 of net income means $16,371 of income tax and CPP combined.
How much tax does a self-employed person really pay?
More than an employee on the same income, because you pay both halves of CPP. Here’s what the self-employed tax calculator shows for Ontario, using net business income after expenses.
| Net income | Income tax | CPP, both halves | Total | Share taken |
|---|---|---|---|---|
| $40,000 | $4,221.13 | $4,343.50 | $8,564.63 | 21.4% |
| $65,000 | $9,052.50 | $7,318.50 | $16,371.00 | 25.2% |
| $80,000 | $13,233.57 | $8,892.90 | $22,126.47 | 27.7% |
| $120,000 | $25,481.56 | $9,292.90 | $34,774.46 | 29.0% |
CPP flattens out at the top, which is why the share doesn’t climb faster. The tool leaves out EI, GST/HST and business expenses, so treat it as a floor.
Picture Dana, a freelance designer in Ottawa who clears $65,000 after expenses. Nobody is holding anything back from her invoices. When tax time rolls around, that $16,371 has to come out of money she may already have spent, which is the part that catches new freelancers off guard.
When does an accountant for self-employed people pay off?
Three moments stand out. The first is when you cross $30,000 of taxable sales and have to register for GST/HST, because a mistake in the sales tax is expensive and repeats every quarter. The second is when you’re weighing incorporation. The third is when you have a mixed year, say a job for part of it and a business for the rest.
If your income is under $30,000 from one clean source, honestly, software and the CRA’s own guidance will do. Pay for help when a wrong answer costs more than the fee. Fees vary a lot from one practice to the next, so ask for a written quote before any work starts.
What is a $3,000 expense worth?
Use the numbers above. On $68,000 of net income in Ontario, tax and CPP come to $17,527.40. On $65,000 they’re $16,371.00. So $3,000 of genuine expenses claimed saves about $1,156.
That’s the case for an accountant in one line. If they find $3,000 you missed, they’ve likely covered a year’s fee. If they find nothing, you’ve bought a second pair of eyes.
Deductions such as an RRSP contribution work differently in the calculator, since they lower income tax but not CPP. That’s how the tool is built, and it may not match the rules for every claim. Ask your accountant which claims lower CPP and which don’t.
What do you still have to do yourself?
Keep records. The CRA wants them kept for six years, and it wants receipts that show the date, the seller and a full description. An accountant can only claim what you can prove. One line from the CRA’s records guide is worth remembering:
Keep your records for six years from the end of the last tax year they relate to.
Keeping Records (RC188), canada.ca
Meet the dates too. For the 2025 return, filing was due June 15, 2026, but any balance owing was due April 30, and interest ran from then. The 2026 dates weren’t published when we looked. Instalments matter as well. The tax instalments calculator uses a $3,000 threshold and shows four payments on March 15, June 15, September 15 and December 15. On $6,000 expected owing, that’s $1,500 each.
If you’re weighing incorporation, the corporate tax calculator gives a first look. On $300,000 of active business income in Ontario it shows $35,088, or 11.7%, before any tax on money taken out. The provincial part is our blend for 2026, not a published rate.
Can you start with a checklist and go from there?
Yes, and it makes the first meeting cheaper. Our self-employed expenses checklist lists the usual categories, so you walk in with receipts sorted instead of a shoebox. For the bigger picture of registrations and filing, the self-employed and small business guide is a good next stop.
How do you pick one?
Ask about clients like you. A person who knows contractors will spot different claims from one who works mostly with corporations. Ask who prepares the return, how they handle CRA letters and what’s outside the fee. Check which professional body they belong to and search its public register.
Walk away from anyone who promises a refund before seeing your records. Nobody can know that.
Sources, and how we checked them
Deadlines, record rules and the GST/HST limit come from Canada Revenue Agency pages, read in September 2026. Tax and CPP figures come from the calculators on this site, using 2026 federal and Ontario schedules. We aren’t a government service and we don’t speak for one.
Frequently asked questions
Do self-employed people need an accountant?
Not always. With low income and simple expenses, you can file with software. Help pays off when GST/HST, incorporation or mixed income enter the picture.
How much tax does $65,000 of self-employed income leave?
In Ontario the calculator shows $9,052.50 of income tax and $7,318.50 of CPP, so you keep $48,629.
When do self-employed people file?
The 2025 return was due June 15, 2026. Any balance owing was due April 30.
What records must I keep?
Records that support your income and expenses, for six years from the end of the last tax year they relate to.
What does an accountant cost?
We couldn't confirm typical fees. Ask for a written quote that lists what's included.
- How to choose a tax preparer in Canada
How to decide if you need a tax preparer, what a preparer does, the questions to ask before you hire one and where to find free help in Canada