Calculator · 2026 tax year
Subcontractor take-home calculator
General information for Saskatchewan and Alberta, checked November 14, 2026. It isn't tax, legal or accounting advice. Your situation may differ, so confirm with CRA, the Ministry of Finance or an accountant before you rely on it.
No one takes tax off a subcontractor's cheque, so you set it aside yourself. Enter a year of billings and costs to see roughly how much is CPP, how much is income tax, and what's left.
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Worked example (the default numbers)
A Saskatchewan sub bills $120,000 (before GST), has $30,000 of expenses, and is GST-registered:
| Net business income: 120,000 − 30,000 | $90,000.00 |
| CPP base: 11.9% × (74,600 − 3,500) | $8,460.90 |
| CPP2: 8% × (85,000 − 74,600) | $832.00 |
| Taxable income after CPP deductions | $84,226.55 |
| Federal tax (after basic personal amount and CPP credit) | $10,666.44 |
| Saskatchewan tax (after basic personal amount and CPP credit) | $6,928.13 |
| Set aside for CPP + tax | $26,887.48 (22.4% of billings) |
|---|---|
| Take-home | $63,112.52 |
| GST: 5% × 120,000 collected − 5% × (75% × 30,000) in credits | $4,875.00 to remit |
The same numbers in Alberta give about $15,762 of income tax, and take-home of about $64,945.
From this example: setting aside about a quarter of each invoice (before GST), plus the GST you collect, less your credits, would have covered CPP, income tax and GST. Your share will differ, so run your own numbers or ask an accountant. The share rises as income rises.
The 2026 figures used
| Item | 2026 figure | Source |
|---|---|---|
| CPP: max pensionable earnings / basic exemption | $74,600 / $3,500 | CRA |
| CPP self-employed rate / max | 11.9% / $8,460.90 | CRA (5.95% × 2) |
| CPP2 ceiling / self-employed rate / max | $85,000 / 8% / $832 | CRA (4% × 2) |
| Federal brackets | 14% to $58,523; 20.5% to $117,045; 26% to $181,440; 29% to $258,482; 33% above | CRA |
| Saskatchewan brackets | 10.5% to $54,532; 12.5% to $155,805; 14.5% above | CRA |
| Alberta brackets | 8% to $61,200; 10% to $154,259; 12% to $185,111; 13% to $246,813; 14% to $370,220; 15% above | CRA |
| Basic personal amounts | Federal $16,452 (down to $14,829 at high income); SK $20,381; AB $22,769 | CRA T4032-SK, T4032-AB |
| GST rate, SK and AB | 5% | CRA |
How the estimate is worked out
- Net income = billings − expenses.
- CPP = 11.9% of net income between $3,500 and $74,600, plus CPP2 at 8% between $74,600 and $85,000. Self-employed people pay both the employee and employer halves.
- The employer half of CPP, plus the "enhanced" part of the employee half and the employee half of CPP2, are deducted from income. The rest of the employee half is claimed as a tax credit.
- Federal and provincial brackets apply to what's left. The basic personal amount and CPP credit are then subtracted at the lowest rate. In Alberta, the 2% supplemental credit is applied when credits exceed $61,200.
- GST is shown separately because it isn't your income. You collect it for CRA.
What it leaves out: RRSP and other deductions, spouse and dependant credits, other income, EI special benefits for the self-employed (opt-in), the federal "top-up" credit, the quick method of GST accounting, and GST paid on equipment you bought this year (claimed separately). It assumes you claim the full basic personal amount. It's a set-aside guide, not a tax return. Your accountant or CRA's tools give the real number.
Paying it
If your net tax owing (income tax plus CPP, less credits) is more than $3,000 this year, and was also more than $3,000 in either of the two previous years, CRA generally expects you to pay income tax and CPP in instalments. For business income those instalments are due March 15, June 15, September 15 and December 15. The balance is due April 30, even though self-employed people have until June 15 to file their return. (CRA, Who has to pay instalments; CRA, filing and payment deadlines; checked November 14, 2026)
GST is separate. If you file annually and your net GST is $3,000 or more this year and last year, quarterly GST instalments are due one month after each fiscal quarter — for a December 31 year-end that's April 30, July 31, October 31 and January 31. For a self-employed person with a December 31 year-end, the annual GST return is due June 15 and any remaining GST is due April 30. (CRA, When to pay GST/HST instalments; CRA, filing and payment deadlines; checked November 14, 2026)
An invoicing app with GST tracking (Wave, FreshBooks, QuickBooks Online) makes the year-end numbers easy to pull. Compare them.
Estimate only, not tax advice. Checked against CRA figures on November 14, 2026.