Clipping income tax in Canada: self-employed guide.

Worked example

$18,000 received and $1,500 of business expenses gives net self-employment income of $16,500.00. The 2026 CPP basic exemption is $3,500, so contributions apply to $13,000.00 at the 11.9% self-employed rate (5.95% employee plus 5.95% employer share), which is $1,547.00. Income tax is a separate calculation: the net amount is added to your other income on your return.

For GST/HST, if your taxable supplies over the last four calendar quarters are $31,000.00, that is above $30,000, so you would generally have to register. At $18,000 you would not, though the single-quarter test also applies.

Methodology: how this works

Net income is what you received after any withheld fee, minus expenses. CRA's Form T2125 is the statement where self-employed people report business income and expenses; the net amount flows to your tax return. CPP for self-employed people is calculated by the existing self-employed CPP/QPP calculator using the 2026 figures ($3,500 exemption, $74,600 maximum pensionable earnings, second tier to $85,000). Quebec residents contribute to the QPP, shown if you tick the box.

The GST/HST test compares your taxable supplies over four consecutive calendar quarters with $30,000. CRA counts zero-rated supplies in that total. This page checks only the four-quarter total: the single-quarter rule and the registration deadline are in the registration checker.

Federal and provincial income tax are not calculated here; use the Canadian self-employment tax calculator for a fuller picture. All figures are what you type, and nothing is stored or sent.

What this does not cover

• Federal and provincial income tax, credits and instalment rules
• The quarter-by-quarter GST/HST test and the deadline to register
• Whether income from a non-resident payer is zero-rated or how to report it
• Employment-versus-self-employment status for a specific campaign
• US tax on the same income (see the US calculator)

Results vary. This page uses the numbers you enter. It does not predict, estimate or promise what anyone will earn from clipping, and it collects nothing: everything runs in your browser.

Sources

Official pages checked 2026-10-19 (retrieved October 2026):

• CRA: Completing Form T2125, Statement of Business or Professional Activities
• CRA: CPP contribution rates, maximums and exemptions
• CRA: When to register for and start charging the GST/HST

FAQ

Do clippers pay taxes in Canada?

Self-employment income is generally taxable in Canada. You report business income and expenses on CRA Form T2125 and the net amount goes on your return.

Do I pay CPP on clip income?

Self-employed people pay both the employee and employer share of CPP on net self-employment income above the basic exemption. Quebec residents contribute to the QPP instead.

When do I need to register for GST/HST?

When your taxable supplies pass $30,000 over four consecutive calendar quarters, or in a single quarter, you generally must register. CRA counts zero-rated supplies toward that amount.

Does the platform fee count as an expense?

Fees and other costs of earning the income are generally business expenses. Enter them as a withheld percentage or in the expenses field, and keep records.

Is this different from the US page?

Yes. The US page models self-employment tax and federal brackets; this one covers CPP and the GST/HST limit, with CRA as the source.