2025 Calculator

Annual Tax Estimator

Stop guessing. We automatically calculate your Sales Tax and estimated Income Tax brackets based on your region.

Location

Annual Totals

$

Total bank deposits (incl. tax)

$

Estimated Take-Home (Net Profit)

$0
Effective Income Tax Rate0.0%

Where did the money go?

1

Sales Tax (To Remit)

Extracted at

-$0
2

Business Expenses

Gear, software, travel, contractors

-$20,000
3

Income Tax & CPP

Based on 2025 tax brackets for Ontario

-$0

True Net Revenue

Revenue excluding Sales Tax

$0

How to use this calculator

  1. Select Your Location: Choose between Canada and the USA, then select your specific province or state to pull accurate 2025 tax rates.
  2. Enter Your Totals: Input your total collected revenue (all money that hit your bank account) and your total business expenses for the year.
  3. Review the Breakdown: See exactly how much sales tax you need to remit vs. how much income tax you should set aside.
  4. Find Your "Take-Home": Use the final Take-Home number to plan your personal budget confidently.

Tax Breakdown Explained

  • Sales Tax: Money you collected on behalf of the government (GST/HST/State Tax). You are just holding it. It is not income.
  • Expenses: Money spent to run the business (Gear, Software, Contractors). This lowers your taxable income.
  • Income Tax: The tax you pay on your *profit* (Revenue - Sales Tax - Expenses). This includes Federal and Provincial/State taxes.

Frequently Asked Questions

Understanding your taxes is the first step to financial freedom.

The total amount collected includes Sales Tax (which belongs to the government) and Income Tax. This tool removes both to show your real spending power.
Yes! The 'Total Expenses' field represents your write-offs. The higher this number, the lower your Taxable Income, and the less Income Tax you will pay.
CPP (Canada Pension Plan) is mandatory for self-employed individuals earning over $3,500. You pay both the employer and employee portions, which is approx 11.9%.
If you collect more than $30k in a year, you must register. Remittance is usually annual or quarterly depending on your total revenue.

How is this calculated?

This tool uses 2025 Projected Tax Brackets.

  • Sales Tax: Extracted from your Gross Revenue first (money that belongs to the gov).
  • Expenses: Deducted next to find your Taxable Income.
  • Income Tax: Calculated progressively based on Federal + Provincial/State brackets.
  • Self-Employment: Includes estimated CPP (Canada) or Self-Employment Tax (USA).

Disclaimer: This is an estimation tool for planning purposes. Actual tax liability depends on marital status, deductions, and other factors. Consult a CPA.

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