Updated Checked by the Tax-Services.ca editorial team How we check
People who search for TurboTax for small business are usually asking one thing: can software file my business taxes? For a sole proprietor, often yes. The CRA says certified software can calculate and file your return electronically. This page doesn’t rank products or quote prices, since both change every season. It covers what small business tax software has to do and how to pick a package that fits.
A list of third-party software developers and their certified tax software products is provided each tax year.
Tax software for filing personal taxes, canada.ca
What kind of business are you?
The answer decides everything. A sole proprietor reports business income on Form T2125 as part of a personal return. A corporation files a T2 corporation return, which is a different filing with different dates. Check that the package you’re eyeing handles your type before you pay for it or enter a single number.
| Business type | What you file | 2026 dates |
|---|---|---|
| Sole proprietor | Personal return with Form T2125 | File by June 15, pay by April 30 |
| Sole proprietor with a tax shelter | Personal return | File by April 30 |
| Corporation | T2 return | File within six months of year end |
| GST/HST registrant, annual filer | GST/HST return | Three months after fiscal year end |
The June 15 date fools people. It moves the filing, not the payment. Anything you owe is still due April 30.
Picture Marcus, an electrician in Winnipeg who works for himself and also took a few weeks of wage work last year. He has T4 income and business income on one return. A package that only handles slips would leave half his year out. The CRA’s page on completing Form T2125 is a good thing to skim first, so you know what the software should be asking you.
What should small business tax software do?
Ask for five things before you buy. It should be certified by the CRA so you can file from home, and it should produce the T2125. It should handle GST/HST if you’re registered. It should keep enough history to help next year. And it should let you export your data. The CRA says records can be kept on paper, electronically or both, but they must stay available for six years.
Anything else is convenience. Bank feeds and receipt photos are nice. None of it changes what you owe. Judge those extras on how you actually work, and be sceptical of marketing that promises more deductions than your records can support.
If a package advertises a free tier, check whether it covers business income, because many stop short of it. Read the fine print before you spend an evening entering data, because switching halfway is a pain.
How much tax will the return show?
Software fills forms, and that’s all. It won’t tell you the number is sane. Run a rough estimate first. On $80,000 of net business income in Ontario, the self-employed tax calculator gives $13,233.57 of income tax and $8,892.90 of CPP, since you pay both halves. Together that’s $22,126.47, or 27.7% of income, leaving $57,873.53.
At $120,000 the total climbs to $34,774.46, or 29.0%. Mind what this tool doesn’t cover. It leaves out EI and business expenses, and its deductions reduce income tax but not CPP. Treat it as a ballpark, not your final bill.
Now compare with the software’s answer. If it’s far off, the gap is probably an expense or a credit, and you can find it. The tax deductions and credits calculator helps with the credit side, though it counts federal credits only.
What about instalments?
These catch new sole proprietors out, so find out if your package covers them. If it doesn’t, the job is yours. The CRA lists 2026 instalment dates of March 15, June 15, September 15 and December 15 for self-employed people. The tax instalments calculator uses a $3,000 threshold. If you expected $9,000 of net tax owing for the year, four equal payments would be $2,250 each ($9,000 divided by four). The CRA also lets you base payments on last year’s figures, which can cost less if your income changed.
If you collect sales tax, add the GST/HST calculator to the mix. A $30,000 sale in Ontario carries $3,900 of HST.
Common mistakes and limits
The first is buying a personal package for a corporation. Another is forgetting that free versions can have limits, which you should read before you start entering data. And there’s trusting the software’s default categories. If a claim looks too generous, ask whether the expense really belongs to the business.
Software can’t fix missing receipts either. Keep them for six years from the end of the last tax year they cover. Stuck on a messy year? That’s when a preparer earns the fee, and our page on how to choose a tax preparer covers what to check. At tax time, a few bucks of software is cheap next to a missed claim, but only if the claim holds up.
How we checked the figures
Dates and filing rules come from the Canada Revenue Agency‘s pages on 2026 business tax deadlines, T2125, and self-employed tax tips, read in September 2026. Estimates come from this site’s calculators, which use 2026 data. We don’t state any product price, feature or ranking, so none appears. This is an independent site, and no government body is behind it.
Frequently asked questions
Can I file my small business taxes with software?
Sole proprietors can. The CRA says NETFILE-certified software can file your return, and some products are free.
Which form reports self-employed income?
Form T2125, Statement of Business or Professional Activities, filed with your personal return.
When is the deadline for self-employed filers?
For the 2026 dates, filing is June 15 and any balance owing is due April 30.
Does personal tax software work for a corporation?
A corporation files a T2 return, which is a different filing. Check that a package supports it before you buy.
Which product is best or cheapest?
We couldn't confirm product prices, features or rankings from an official source, so we don't compare them.
- 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