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Salary plus self-employment · 2026 tax year · Rates verified October 20, 2026

Side Hustle Tax Calculator

Freelancing, reselling, driving or consulting on top of a job? Enter your salary and side income to see the extra tax and CPP, how much of each payment to set aside, and what to expect at tax time.

RRSP and tax withheld at work
Example: $65,000 salary, $18,000 side income, $3,000 expenses, Ontario

Set aside about 38% of your side profit: $5,755 of $15,000.

Extra income tax$4,181federal + Ontario
CPP on side income$1,574both halves
You keep$9,24562% of side profit

Breakdown

Side revenue$18,000.00
Business expenses−$3,000.00
Net side income$15,000.00
Extra federal tax$2,783.13
Extra Ontario tax$1,397.93
CPP on side income$1,574.40
Total extra tax and contributions$5,755.46
Side income you keep$9,244.54
Rate on your next $100 of side income35.28%

At tax time

Expect to owe about $5,755 when you file, assuming your employer deducted the right tax on your salary.

Instalments likely in 2027 You’ll owe more than $3,000 for 2026. That alone doesn’t require 2026 instalments, but if you owe that much again for 2027, the CRA will ask for quarterly payments of about $1,438.86, due Mar 15, 2027, Jun 15, 2027, Sep 15, 2027, Dec 15, 2027.

GST/HST optional You stay a small supplier while taxable sales are $30,000 or less in any calendar quarter and in the last four quarters together. You may still register voluntarily to claim back GST/HST on business purchases.

How side income is taxed

  • Your side profit (income minus expenses) is added to your salary, so it is taxed at your highest bracket, not from zero.
  • No tax is taken off side income when you’re paid, so the tax comes due when you file.
  • You pay both halves of CPP on self-employed earnings: 11.9% on total earnings between $3,500 and $74,600, and 8% between $74,600 and $85,000. Half is deducted from your income. A salary above $85,000 means no CPP on side income.
  • Self-employed income doesn’t pay EI unless you opt in.

How much to set aside, Ontario 2026

Extra tax and CPP on side profit, with the share to set aside in brackets. Pick your province in the calculator for your exact figure.

Salary$5,000 side$10,000 side$20,000 side$40,000 side
$40,000$1,434 (29%)$3,018 (30%)$6,065 (30%)$13,730 (34%)
$60,000$1,927 (39%)$3,855 (39%)$7,683 (38%)$13,898 (35%)
$80,000$1,764 (35%)$3,246 (32%)$6,234 (31%)$13,073 (33%)
$100,000$1,574 (31%)$3,174 (32%)$6,863 (34%)$15,545 (39%)
$150,000$2,231 (45%)$4,479 (45%)$8,976 (45%)$18,215 (46%)

Instalments

For 2026 you pay quarterly instalments only if you owe more than $3,000 at filing ($1,800 of federal tax in Quebec) and you also did for 2025 or 2024. The CRA sends reminders in February and August. Paying late or too little can bring instalment interest. 2026 due dates: March 16, June 15, September 15 and December 15.

GST/HST

You can stay unregistered as a small supplier while your taxable sales are $30,000 or less in every calendar quarter and over the last four quarters together. Cross $30,000 in one quarter and you must charge GST/HST from that sale; cross it over four quarters and you must start by the second month of the next quarter. Ride-sharing drivers must register from day one.

Key dates for 2026 income

  1. April 30, 2027: pay any balance owing to avoid interest.
  2. June 15, 2027: file your return with form T2125 for your business.

Want the full picture of your salary alone? Use the income tax calculator.

Frequently asked questions

How much should I set aside for taxes on side income?

It depends on your salary and province, because side income is taxed at your top rate and usually also pays both halves of CPP. With a $60,000 salary in Ontario, $10,000 of side profit costs about $3,855 in tax and CPP, or 39%. Enter your own numbers above for your rate.

Do I pay CPP on side hustle income?

Yes, if your total employment and self-employment earnings are under $85,000 in 2026. Self-employed earnings pay both the employee and employer shares: 11.9% between $3,500 and $74,600 of total earnings, and 8% between $74,600 and $85,000. Half of it is deducted from your income. If your salary is already above $85,000, you pay no CPP on side income.

Do I pay EI on self-employment income?

No. Self-employed people don’t pay EI unless they opt in to the EI special benefits program for self-employed people.

When do I have to pay tax instalments?

For 2026, you pay quarterly instalments if you owe more than $3,000 when you file ($1,800 of federal tax in Quebec) and you also owed more than that for 2025 or 2024. The CRA sends reminders with the amounts. 2026 due dates are March 16, June 15, September 15 and December 15.

When do I need to register for GST/HST?

Once your taxable sales pass $30,000 in a single calendar quarter, or over four consecutive quarters. Until then you are a small supplier and registration is optional. Commercial ride-sharing drivers, such as Uber and Lyft drivers, must register from their first fare.

When is my tax return due with self-employment income?

If you or your spouse had self-employment income in 2026, you have until June 15, 2027 to file. Any balance owing is still due April 30, 2027, so interest starts after that date. Report the business on form T2125.

What expenses can I deduct?

Reasonable costs to earn the income, such as supplies, software, advertising, professional fees, the business share of phone and internet, vehicle costs for business trips and a share of home costs if you work from home. Keep receipts; the CRA can ask for them.

Sources

Rates were last verified on October 20, 2026. The calculator uses the same 2026 engine as our income tax calculators, checked by 57 automated tests, including self-employed CPP, instalment and GST/HST rules.

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