Canada Tax Knowledge Base

Browse practical answers to common tax questions for Canada self-employed individuals, sole traders, and freelancers. Select a category or search for your question.

Getting Started

  • How does tax work for self-employed Canadians?
  • When does the Canadian tax year start and end?
  • Do self-employed Canadians have to pay Employment Insurance (EI)?
  • What is the difference between a sole proprietor and a corporation in Canada?
  • How do I get a Business Number (BN) from the CRA?

Income Tax

  • What are the Canadian federal income tax rates for 2024?
  • What is the Basic Personal Amount (BPA) and how does it reduce my tax?
  • How does provincial income tax work for self-employed Canadians?
  • How do RRSP contributions benefit self-employed Canadians?
  • Can a TFSA help reduce tax as a self-employed Canadian?

Cpp

  • How much CPP do self-employed Canadians pay?
  • Can I deduct CPP contributions as a self-employed person?

Gst Hst

  • When do I need to register for GST/HST in Canada?
  • What are the GST/HST rates in each Canadian province?
  • How do I file my GST/HST return in Canada?
  • What are Input Tax Credits (ITCs) and how do I claim them?
  • What is the GST/HST Quick Method and should I use it?

T1 Filing

  • What is a T1 Return and how do self-employed Canadians file it?
  • What is Form T2125 and what does it cover?
  • What is a Notice of Assessment (NOA) and what should I check?

Deadlines

  • What are the key CRA tax deadlines for self-employed Canadians?
  • When do self-employed Canadians need to pay tax by instalment?
  • What penalties does the CRA charge for late filing or late payment?

Business Expenses

  • What business expenses can self-employed Canadians deduct?
  • What is Capital Cost Allowance (CCA) and how do I claim it?
  • Can I deduct accountant and legal fees as a self-employed Canadian?
  • Can I deduct my phone and internet costs as a self-employed Canadian?
  • Can I deduct meals and entertainment as a self-employed Canadian?

Home Office

  • How do I claim home office expenses in Canada?

Vehicle Travel

  • How do I claim vehicle expenses as a self-employed Canadian?
  • What is the CRA mileage rate for 2024?

Record Keeping

  • How long do I need to keep records for the CRA?
  • What happens during a CRA audit and how do I prepare?

Related Resources

  • Frequently Asked Questions
  • Tax Glossary
  • Profession Guides