Calculator · Business Expenses

Self-Employed Expense Calculator

Estimate business-use expenses, net self-employment income, and how much your deductions may reduce income tax and CPP.

Your Business Expenses
✓ Filled from your Sidehub Pro data
Basic information
All provinces and territories except Quebec.
T4 salary, pension, or other taxable income. Enter 0 if self-employment is your only income.
Optional. Enter Box 26 from your T4 slips if your other income includes CPP-pensionable employment. Pension, investment, and other non-employment income should not be entered here. Enter 0 if you had no T4 employment.
Total freelance, consulting, gig, contract, or sole proprietor revenue before expenses and tax.
Expense categories Est. deductible
Advertising and marketing $0

Advertising and promotion costs related to earning business income.

Vehicle expenses $0
For a personal vehicle used for both business and personal driving, only the business-use portion is generally deductible. Keep records of total kilometres and business kilometres to support your claim. CCA/depreciation is not included in this estimate.
Home office $0
Business-use-of-home expenses may be deductible only if CRA conditions are met. Mortgage interest may be included but mortgage principal generally cannot. This calculator estimates the workspace percentage only and does not determine eligibility.
Phone and internet $0

Only the business-use portion should generally be included. Avoid double-counting internet already included under home office.

Software and subscriptions $0

Accounting software, design tools, cloud storage, industry software, website tools, domain/hosting.

Office supplies $0

Stationery, printer supplies, small office items used for business.

Professional fees $0
Meals and entertainment $0
Meals and entertainment are commonly limited to 50% of the lesser of the amount incurred and a reasonable amount. Special rules can apply. The default allowable percentage is 50%.
Travel $0

Travel meals are calculated separately and multiplied by the meals allowable percentage. Transportation, hotels, and other travel use the business-use percentage.

Subcontractors and outside services $0
Rent / coworking / studio space $0

Separate from home office. Use this for external office, coworking membership, or studio rental.

Business insurance $0

Professional liability, errors and omissions, or other business insurance policies.

Bank charges and interest $0
Other business expenses $0

Any other business expenses incurred to earn self-employment income.

Save these estimated deductibles to Sidehub Pro as your 2026 expense data. Unsaved changes

Total est. deductible
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across all categories
Est. tax + CPP saved
—
 
Effective savings rate
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cents saved per dollar deducted
Deductible expenses by category
Enter expenses above to see the category breakdown.
Expenses may exceed revenue. Your estimated expenses are greater than your gross revenue. This calculator shows net business income as $0 for planning purposes. Business losses, loss carryovers, and expense deductibility in this situation can be complex. Confirm with a tax professional.
Some expenses include a significant personal-use portion. Keep records showing how the business-use percentage was calculated. The CRA may ask for documentation to support the claimed percentage.
Home office expenses entered. Business-use-of-home expenses may be deductible only if the workspace meets CRA conditions — generally, the workspace must be where you principally carry on the business, or used exclusively for business and for meeting clients. This calculator estimates the workspace percentage but does not determine eligibility.
Vehicle expenses entered. Vehicle expense claims generally require records of total kilometres driven and business kilometres driven. Keep a log for the year the claim relates to.
Meals and entertainment entered. Meals and entertainment are commonly limited to 50% of the eligible amount, though special rules can apply (for example, certain employee events or amounts already limited by other rules). Confirm the applicable limit with the CRA or a tax professional.
GST/HST registration may apply. Your gross self-employment revenue is at or above the common $30,000 small supplier threshold. Depending on your business type and the timing of your revenue, you may need to register for, charge, and remit GST/HST. Use the GST/HST Registration Threshold Checker to assess your situation.
Income summary
Gross self-employment revenue —
Estimated deductible expenses —
Net business income after expenses —
Tax and CPP estimate
Estimated tax + CPP before expenses —
Estimated tax + CPP after expenses —
Estimated tax + CPP savings from expenses —
After-tax income
Estimated after-tax self-employment income —
Monthly equivalent tax + CPP savings —
Quarterly equivalent tax + CPP savings —
How this estimate is calculated
Gross self-employment revenue —
Minus estimated deductible expenses —
Net business income after expenses —
Estimated tax + CPP before expenses —
Estimated tax + CPP after expenses —
Estimated tax + CPP savings —

Planning estimate only — not tax advice. This calculator does not determine whether an expense is legally deductible, and does not include CCA, GST/HST input tax credits, RRSP deductions, EI premiums, or other taxpayer-specific credits and adjustments. Includes Ontario surtax and Health Premium where applicable. All supported provinces and territories except Quebec. Confirm your situation with the CRA or a qualified tax professional.

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Estimated expense breakdown
Category Total entered Business-use / allowable Est. deductible
Advertising and marketing — — —
Vehicle expenses — — —
Home office — — —
Phone and internet — — —
Software and subscriptions — — —
Office supplies — — —
Professional fees — — —
Meals and entertainment — — —
Travel — — —
Subcontractors — — —
Rent / coworking / studio — — —
Business insurance — — —
Bank charges and interest — — —
Other business expenses — — —
Total estimated deductible expenses —
Included
  • All provinces and territories except Quebec
  • 2026 federal income tax brackets and CPP rates
  • Self-employed CPP (both tiers) with deduction and non-refundable credit treatment
  • Optional T4 Box 26 to estimate remaining CPP room from employment
  • Ontario surtax and Health Premium where applicable
  • T2125 expense categories for sole proprietors
  • Business-use percentage adjustments
  • 50% meals/entertainment limit (configurable)
  • Tax + CPP comparison before and after expenses

CPP is estimated using the 2026 planning engine. If T4 Box 26 is entered, employment pensionable earnings are used to estimate remaining CPP room. Actual Box 16/16A contributions are not reconciled here — use the Self-Employed Tax Calculator for that precision.

Not included
  • Whether an expense is legally deductible
  • CCA/depreciation or capital asset classes
  • GST/HST input tax credits
  • Quebec (Revenu Quebec)
  • Incorporated business expenses
  • Inventory and cost of goods sold
  • EI premiums
  • RRSP deductions, specialized taxpayer-specific credits, and other adjustments not modelled by Sidehub
  • Actual T4 Box 16/16A CPP reconciliation

Understanding your estimate

Self-employed Canadians generally report business or professional income and expenses on Form T2125 (Statement of Business or Professional Activities), filed with the annual T1 personal income tax return.

Business expenses may reduce net business income when they are connected to earning income and are reasonable in the circumstances. The CRA generally requires that an expense be incurred for the purpose of earning income — not for personal reasons — and that it be supported by receipts or records.

This calculator estimates the income tax and CPP impact of entering different expense amounts. It does not approve or validate any specific expense.

Many expenses are mixed-use: partly personal, partly business. Only the business-use portion should generally be claimed. There is no single rule, but the method should be reasonable and supportable:

  • Vehicle: business kilometres ÷ total kilometres driven in the year
  • Home office: workspace area as a proportion of total home area
  • Phone and internet: estimated proportion of business use relative to total use

Keep records that support the percentage you claim. If the CRA reviews your return, you may need to provide documentation explaining how the percentage was determined.

A $1,000 deduction does not usually save $1,000 in tax. A deductible expense reduces your net business income, which in turn reduces the income on which you owe tax and CPP. The actual savings depend on:

  • Your marginal federal and provincial income tax rate at that income level
  • The CPP reduction on lower net self-employment income
  • Other income, deductions, and credits on your return

For a self-employed person in Ontario at $85,000 of gross revenue, a $1,000 deductible expense might save approximately $350–$450 in combined income tax and CPP. The effective savings rate shown in the stat cards approximates this percentage across all entered expenses.

Advertising and marketing

Online ads, website costs, printed materials, social media, and similar promotion costs.

Vehicle expenses

Fuel, insurance, repairs, lease payments, loan interest, and parking — multiplied by the business-use percentage. CCA on a vehicle and specific lease/interest limits are not included here.

Home office

Rent or mortgage interest, utilities, internet, insurance, and other home costs — multiplied by the workspace percentage. CRA conditions apply to eligibility.

Phone and internet

Mobile phone bills and internet service used for business, to the extent of business use.

Software and subscriptions

Accounting software, cloud tools, design applications, website hosting, domain names, industry-specific software.

Professional fees

Accounting, bookkeeping, legal, and other professional services incurred for the business. Professional memberships and licence fees may also apply.

Meals and entertainment

Business meals and entertainment, generally limited to 50% of the eligible amount. Special rules can apply for certain types of events.

Travel

Business travel costs including transportation, accommodation, and meals away from home. Travel meals are subject to the 50% limitation.

Subcontractors and outside services

Payments to subcontractors, freelancers, or outside service providers for work done on behalf of the business.

Rent and coworking

Rent for a dedicated business space or coworking membership, separate from any home office claim.

Insurance

Professional liability, errors and omissions, and other business insurance premiums.

Bank charges and interest

Business bank account fees and interest on business loans used to earn income.

Is this calculator tax advice?

No. It is an educational planning estimate only. It does not determine whether an expense is legally deductible.

Can I deduct the full cost of my phone or internet?

Only the business-use portion should generally be included if the expense is used for both business and personal purposes.

Are meals and entertainment fully deductible?

Often no. Meals and entertainment are commonly limited to 50% of the eligible amount, though special rules can apply.

Does this include GST/HST input tax credits?

No. This calculator estimates income tax and CPP impact. GST/HST input tax credits are separate.

Does this include CCA or depreciation?

No. CCA/depreciation and capital asset rules are excluded. CCA involves asset classes, declining balances, and half-year rules that require a more detailed calculation.

Why are my tax savings lower than my expenses?

Expenses reduce taxable income. The savings depend on your tax rate and CPP impact — typically 30%–50% of the deductible amount depending on your province and income level.

Sources: CRA — Form T2125; CRA — T4002 Self-employed Business, Professional, Commission, Farming, and Fishing Income; CRA — Expenses section of Form T2125. Last reviewed: June 2026.