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Self-Employed Tax Filing in Canada: What You Need to Know
Self-Employed in Canada? Here's How to File Your Income Taxes
Working for yourself comes with a lot of freedom, but tax season can feel a little different when there's no employer taking care of everything for you.
Whether you're a hairstylist, contractor, freelancer, online seller, or running a small business from home, you're generally responsible for reporting your business income and expenses.
Here's what you should know.
How Do Self-Employed People File Taxes in Canada?
If you're operating as a sole proprietor, you generally report your business income on your personal income tax return (T1).
You'll also typically complete Form T2125, Statement of Business or Professional Activities, to report your business income and expenses.
You don't necessarily need a separate business tax return just because you're self-employed.
Incorporated businesses are different and generally file a T2 corporate income tax return.
What Expenses Can You Claim?
One of the benefits of being self-employed is that you can deduct eligible expenses incurred to earn business income.
Depending on your business, these might include:
Advertising and marketing
Office supplies
Business software and subscriptions
Professional fees
Business-use portions of telephone and internet expenses
Eligible home office expenses
Business-related vehicle expenses
Not every purchase is fully deductible. Personal-use portions, capital purchases, and certain other expenses have different tax rules.
When Are Self-Employed Taxes Due?
For the 2026 tax year, most self-employed individuals and their spouses or common-law partners have until June 15, 2027, to file their personal income tax returns.
However, any income tax balance owing is generally due April 30, 2027.
That means you may have extra time to file, but not extra time to pay.
How Much Does It Cost to Have Your Self-Employed Taxes Prepared?
At Booked Solid Bookkeeping, self-employed income tax preparation starts at $229 for a T1 personal return with a T2125.
Your final fee depends on the complexity of your return and the information that needs to be reviewed.
If your bookkeeping is behind or your expenses aren't organized, we can discuss what needs to be completed before filing.
Can You File Your Self-Employed Taxes Online?
Yes! You don't have to visit an office.
Booked Solid Bookkeeping provides virtual tax preparation services for self-employed individuals across Canada, including Newfoundland and Labrador.
You can submit your documents electronically and have your return prepared without travelling to an appointment.
Need Help Filing Your Self-Employed Taxes?
Running your business is enough work without having to figure out every tax form yourself.
Whether you're filing your first self-employed return or have been in business for years, Booked Solid Bookkeeping can help you get your taxes prepared.
Self-employed tax preparation starts at $229.
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