Updated Checked by the Tax-Services.ca editorial team How we check
Tax software for a small business has to fit how the business is set up. A sole proprietor reports on a personal return with form T2125, and a corporation files a T2 return. On $50,000 of net business income in Ontario, the self-employed calculator puts income tax at $5,961.64 and CPP at $5,533.50.
Which tax software does your business need?
Start with the structure, then the product. The pick isn’t a matter of brand.
| You are | You file | Look for |
|---|---|---|
| Sole proprietor | Personal return with form T2125 | A personal program with a business income section |
| Corporation | T2 corporation return | Software certified for T2 filing |
| GST/HST registrant | GST/HST return | Check the CRA’s list for GST/HST filing software |
If you have both business and professional income, or more than one business, the CRA wants a separate T2125 for each. Check that a program supports that before you buy it.
Take Maya, a mobile dog groomer in Saskatoon. She works alone, has no employees and made a profit of about $50,000 last year. A personal program with a business section is the right tool for her, and a corporate package would just be a few bucks spent on screens she’ll never open. Change one fact, say she incorporates next spring, and the answer changes with it.
What does CRA certification tell you?
That the program works with CRA systems, nothing more. For T2 filing, the CRA lists over 25 certified products from different developers. It says it doesn’t endorse or recommend any product over another, and it tells you to confirm with the developer whether the software has restrictions and to use the newest version.
It also says it isn’t responsible if a software error changes your tax calculation. In plain words, the return is yours whichever program you use.
What should you ask before you pay?
We didn’t compare prices or features of any product, and we can’t vouch for claims about them. What we can do is give you questions that work for any of them.
- Does it cover your return type: T2125, T2, or both?
- Can it import last year’s file, or your bookkeeping data?
- Which slips and schedules are left out?
- Is there real help by phone or chat, and is it included?
- Does it file the GST/HST return too, or only income tax?
An accountant may be the better answer once you have staff, inventory or a corporation. Choose on complexity, not on how easy the software looks in an advert. And if you only sell a little on the side, a personal program with a business section is usually plenty.
One more check that costs nothing: ask whether the program lets you save the finished return and your supporting numbers as a file. You’ll want them if the CRA writes next year, and a subscription you let lapse shouldn’t take your records with it.
What do the numbers look like for a self-employed year?
Here’s a test to run against any program. The self-employed tax calculator gives these results for $50,000 of net business income in Ontario, and $22,126 of tax and CPP on $80,000.
| Net business income | Income tax | CPP, both halves | Left after both |
|---|---|---|---|
| $50,000 | $5,961.64 | $5,533.50 | $38,504.86 |
| $80,000 | $13,233.57 | $8,892.90 | $57,873.53 |
Net means after your business expenses. The calculator leaves out EI, GST/HST and the expenses themselves, so enter income after you’ve taken those off. You pay both the employee and the employer half of CPP, which is why the figure looks high. If a program’s answer lands far from these, ballpark or not, go back and check how it handled the expense lines before you file.
Which mistakes and deadlines catch business owners?
Deadlines. For the 2025 year, a self-employed person with a December 31 year end had until June 15, 2026 to file, but any tax owing was due April 30, 2026. Plenty of people read the June date as a payment date and get charged interest. Why does that happen? Because the software lets you file in June without ever mentioning the payment. The CRA’s due dates page sets out both dates side by side.
Then there are instalments, which nobody expects in year one. If your net tax owing is over $3,000, you may have to pay quarterly, and the tax instalments calculator shows the dates. Mixing personal and business spending is the next trap, and no software fixes that for you.
Corporations have their own numbers. To see the tax on a company’s profit, try the corporate tax calculator, and check the sales tax on your invoices with the GST/HST calculator. Not sure which return you even file? Our self-employed and small business guide sorts that out first.
Sources, and how we checked them
Income tax and CPP figures come from our 2026 tax data, which we checked on 29 September 2026. Software certification, T2125 and deadline facts come from the Canada Revenue Agency‘s web pages. TurboTax is named only as an example of a well known program. This site has no connection with the CRA, any government or any software company.
Frequently asked questions
Which form does a sole proprietor file?
Form T2125, Statement of Business or Professional Activities, filed with the personal return. A separate form is needed for each business or professional activity.
Does the CRA recommend a tax program?
No. It certifies software for compatibility but says it does not endorse or recommend any product over another.
When was the 2025 return due for the self-employed?
June 15, 2026 for filing, if the year end was December 31. Any tax owing was due April 30, 2026.
Does the self-employed calculator include everything?
No. It leaves out EI, GST/HST and business expenses, so enter income after expenses.
Do I need an accountant instead of software?
Often once you have staff, inventory or a corporation. Choose on how complex your affairs are.
- 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