Tax Checksincome
I'm self-employed - why is my tax bill so high?
CPP catches people off-guard more than income tax.
Is this you?
- I earned self-employment income
- I saved for income tax but still owe more than expected
- I forgot that as my own boss, I pay CPP twice
"Saving 15-20% for income tax is enough."
Self-employed Canadians pay both employee and employer CPP, effectively doubling the CPP rate and creating balance-owing shock.
Why guessing is risky
- Unexpected balances often appear at filing time
- Interest applies if amounts aren't paid on time
- Better estimates prevent panic and late filing
Safe to ignore if
- I had no self-employment income
- I planned for both income tax and CPP
Stop and check if
- I had self-employment income and didn't plan for CPP
- I'm unsure whether my activity qualifies as self-employment
Resolve the doubt
Check my self-employed tax risk (2 minutes)We'll tell you if this needs reporting and what to do next.
"Most people uncover planning adjustments that prevent repeat shocks."