Self-Employment Tax Calculator (USA & Canada)

Alex recently started his own freelance graphic design business. He works hard, takes on multiple clients, and finally starts seeing a steady income. But at tax time, he freezes.

“How much of my income will I actually keep after paying self-employment taxes and income tax?”

He’s heard terms like SE tax, CPP, federal tax, provincial tax, effective tax rate, and it all feels overwhelming. He knows miscalculating could cost him hundreds — maybe even thousands — of dollars.

This is exactly why the Self-Employment Tax Calculator was created. It makes complex tax rules simple and helps self-employed individuals like Alex understand their real take-home income.

What Is the Self-Employment Tax Calculator?

This tool is designed for self-employed individuals in the USA and Canada.

It allows you to input:

• Your annual self-employment income
  
• Your business expenses
  
• Filing status (single, married, etc.)
  
• Province or state (for Canadian provincial tax or U.S. state income tax)
  

And it instantly calculates:

• Net income
  
• Self-employment tax (or CPP in Canada)
  
• Income tax
  
• Total tax paid
  
• Effective tax rate
  
• After-tax income

Why Is This Important?

1. Avoid surprises at tax time – Know in advance what you owe.
   
2. Plan finances better – Understand what’s left for living, savings, and business reinvestment.
   
3. Maximise deductions – By entering business expenses accurately, you reduce taxable income.
   
4. Compare tax impact – See the difference between filing statuses or provinces/states.
   
5. Prepare for retirement contributions – Know how SE tax/CPP affects your future benefits.
   

How the Calculator Works (Step by Step)

1. Select your country – USA or Canada.
   
2. Enter annual self-employment income – Total revenue from your business.
   
3. Enter annual business expenses – Office supplies, software, equipment, etc. These reduce taxable income.
   
4. Select filing status – Single, Married Filing Jointly, or other options (U.S.) or your province (Canada).
   
5. Click calculate – The calculator automatically:
   
   • Determines net income = Income – Expenses
     
   • Computes self-employment tax (USA) or CPP (Canada)
     
   • Calculates federal and state/provincial income tax
     
   • Summarizes total tax, effective tax rate, and after-tax income
     

Everything is instant and accurate, using the latest tax rules for each country.

Formula

USA:

1. Net income = Self-employment income – business expenses
   
2. SE tax = Net income × 15.3% (12.4% Social Security + 2.9% Medicare)
   
3. Deductible portion of SE tax = SE tax ÷ 2
   
4. Taxable income = Net income – deductible portion
   
5. Income tax = Apply federal + state tax rates
   
6. Total tax = SE tax + income tax
   
7. After-tax income = Net income – total tax
   
8. Effective tax rate = Total tax ÷ Net income × 100
   

Canada:

1. Net income = Income – business expenses
   
2. CPP contribution = Net income × contribution rate
   
3. Taxable income = Net income – CPP contribution
   
4. Income tax = Apply federal + provincial tax rates
   
5. Total tax = CPP + income tax
   
6. After-tax income = Net income – total tax
   

Effective tax rate = Total tax ÷ Net income × 100