Updated Checked by the Tax-Services.ca editorial team How we check
Ontario has no tax credit made only for self-employed people, and none shows up in the official figures we checked. What you get is the same federal and Ontario tax as everyone else, CPP on both halves, and HST once you sell enough. On $80,000 of net business income, Ontario tax is $4,535.12 and federal tax is $8,698.44.
Why you can’t find an Ontario self employment credit
Most people search for one because running a business feels like it should earn a break, and it does, but the break comes as deductions, not credits. Business expenses come off your income before tax is worked out. Credits cut the tax itself, and any taxpayer who meets the conditions can claim them. The tax credits calculator lists the ones it models, and not one is reserved for business owners. If you’re wondering which costs count as expenses, the self-employed expenses checklist is a good starting point. A further $5,000 of real expenses on an $80,000 year would take net income down to $75,000, and every dollar of that is taxed at your top rates, which is why records matter more than any credit hunt.
What tax will you actually pay?
Ontario taxes your taxable income in five steps for 2026, and Ottawa adds its own scale on top. Here are the provincial rates.
| Ontario taxable income | Rate |
|---|---|
| Up to $53,891 | 5.05% |
| $53,891 to $107,785 | 9.15% |
| $107,785 to $150,000 | 11.16% |
| $150,000 to $220,000 | 12.16% |
| Over $220,000 | 13.16% |
Two extras push the bill up. The Ontario surtax adds 20% of provincial tax above $5,818, and another 36% above $7,446. Then there’s the Ontario Health Premium, a yearly amount that grows with income, from $0 at $20,000 or less to a top of $900. We confirmed the maximum for each tier but not how the amount climbs inside a tier, so don’t lean on an exact figure in the middle.
How much does CPP take when you work for yourself?
An employer normally pays half of CPP. You pay both halves, at 11.9% on earnings from $3,500 to $74,600 in 2026, which comes to $8,460.90. From $74,600 to $85,000 a second tier charges 8%, up to $832. Some of that comes back as a deduction and a credit, and the self-employed tax calculator applies both.
Here’s how the numbers stack up at four income levels.
| Net business income | Ontario tax | CPP | Left after both |
|---|---|---|---|
| $30,000 | $999.80 | $3,153.50 | $24,391.47 |
| $60,000 | $2,723.99 | $6,723.50 | $45,397.08 |
| $80,000 | $4,535.12 | $8,892.90 | $57,873.53 |
| $120,000 | $8,665.11 | $9,292.90 | $85,225.54 |
The last column takes off federal tax as well. Our guide to income tax for the self-employed walks through the method. Put plainly, an $80,000 year leaves about $57,874 of take-home, so April’s bill is a bigger bite than most employees ever see on one slip.
When do you have to register for HST?
Ontario charges 13% HST, which the CRA’s page on charging and collecting GST/HST lists by province. According to the CRA, you must register for GST/HST once your taxable sales pass the $30,000 small supplier limit. Under that you can still register if you like. You’d claim back the HST you pay on business costs, but you’d also have to charge it. On a $1,000 invoice, 13% HST adds $130, and the GST/HST calculator does the sum for any price.
Here’s the effect on a small year. Mia, a freelance editor in Ottawa, bills $45,000 of taxable services. She charges $5,850 of HST (13% of $45,000) and pays $260 of HST on $2,000 of business costs. She sends the CRA the difference, $5,590. That money was never hers, so park it in a separate account as it arrives.
Which credits can you still claim?
The same ones as anyone else. Our credits tool is built on federal amounts: age, pension income, disability, medical expenses, tuition, donations and the home buyers’ amount. Claim them on the same return as your business income. As a test, take $85,000 of income, a $5,000 RRSP deduction, $4,000 of medical costs and $500 of donations. Tax drops by $1,824, of which $1,483 is the RRSP and $341 is credits.
Ontario also has a low income credit called LIFT. The source we read shows a top amount of $875, but it isn’t in our tools and we couldn’t confirm its 2026 indexing. Check ontario.ca before you count on it, and see whether business income qualifies.
Where do self-employed people slip up?
- Hunting for a special credit and missing plain deductions like an RRSP contribution.
- Leaving CPP out when planning cash for April.
- Registering for HST late, or charging it before you have to.
- Assuming our estimates cover EI, instalments or business expenses. They don’t.
Our guide to self-employed and small business taxes covers the wider picture if you’re starting out.
Where the numbers come from
Federal and CPP figures are the 2026 values on canada.ca from the Canada Revenue Agency. Ontario rates, surtax and health premium tiers come from the Government of Ontario for 2026. The HST limit is from the CRA page on when to register. No level of government runs or endorses this site.
Frequently asked questions
Is there an Ontario self-employment tax credit?
No. We found no credit for self-employed people alone in the official figures, so you deduct business expenses instead.
How much Ontario tax do you pay on $80,000 of business income?
Ontario tax is $4,535.12 and federal tax is $8,698.44, with $8,892.90 of CPP on top.
When do you have to register for HST?
Once your taxable sales pass the $30,000 small supplier limit. Ontario HST is 13%.
What's the Ontario surtax?
It adds 20% of Ontario tax above $5,818, and 36% above $7,446.
Which credits can a business owner claim?
The same as anyone else: age, pension, disability, medical, tuition and donation credits, when you qualify.
- Canadian tax credits and government benefits explained
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- Ontario income tax and sales tax in 2026
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