Canada Gig Tax Calculator for 2026 (BC, in CAD)

How to use this calculator

1. Add up gross income from every app. Delivery and rideshare income is business income. Platforms may send a slip such as a T4A, but you must report the income whether or not a slip arrives. If the year is not over, project it: earned so far ÷ weeks worked × 52.
2. Enter business kilometres and total kilometres. Your vehicle deduction is the business share of your actual costs. If you drove 30,000 km of a 40,000 km year, 75% of your car costs are deductible.
3. Enter your total vehicle costs, not a per-km figure. Add fuel, insurance, maintenance, registration and loan interest or lease payments for the whole year. If you claim capital cost allowance (CCA) on a vehicle you own, add it to other expenses after working it out; passenger-vehicle limits apply.
4. Open Advanced if you also have a job, plan to contribute to an RRSP, or have already sent the CRA instalments.

What the result means

"Set aside from every payout" is the share of gross gig income to move into a separate savings account as money lands. If it says 20%, then every C$100 you earn means C$20 goes to the tax account. It covers federal tax, BC tax and CPP, and it is measured against what you would owe without the gig income, so it also works if you have a job.

"Still owed at filing" is total tax minus the income tax withheld at your job and any instalments you entered. This is the lump sum people are caught by when nothing was set aside during the year.

The box under the numbers answers the instalment question: whether your estimated net tax owing is over C$3,000 this year, and whether the prior-year test is met.

Three worked examples

These numbers were produced by the same engine that powers the calculator (2026 figures, BC), not typed by hand. Amounts are CAD.

1. Full-time driver, no other job

Gross C$50,000. Drove 40,000 km in total, 30,000 km for deliveries (75.0% business use). Vehicle costs C$12,000, other expenses C$1,000.

• Vehicle deduction: C$9,000 → net business income C$40,000
• CPP, both halves: C$4,343.50 (C$2,171.75 employer half + C$2,171.75 employee half)
• Federal tax C$2,689 + BC tax C$990
• Total: about C$8,022, which is 16.0% of gross

Without the vehicle claim, the same driver would owe about C$10,914. That is C$2,892 more, because both income tax and CPP are charged on a larger profit. The logbook is worth real money.

2. Part-time driver with a day job

Employment income C$45,000 with C$5,000 of income tax withheld (an assumed figure for the illustration). Gross gig income C$15,000, 8,000 business km out of 20,000 km, vehicle costs C$6,000, other expenses C$300.

• Net business income: C$12,300
• CPP on the gig income (both halves): C$1,463.70
• Total tax on the return: C$8,856; balance owing after withholding: C$3,856
• Extra tax caused by the gig work: about C$3,930, or 26.2% of gross gig income

The gig profit lands on top of the salary, so it is taxed at your highest bracket plus CPP. Your employer has no idea about it, so nothing is withheld on this extra income.

3. High business use, with and without an RRSP

Gross C$48,000, 27,000 business km of 30,000 km (90.0% business use), vehicle costs C$7,000, other expenses C$500.

• Vehicle deduction C$6,300 → net business income C$41,200
• Total tax: C$8,412 (17.5% of gross)
• Add a C$3,000 RRSP deduction and total tax drops to C$7,717, a saving of C$695. The RRSP reduces income tax; it does not reduce CPP.

How the calculation works

1. Net business income (T2125): gross income − business share of vehicle costs − other expenses.
2. CPP: 11.9% (5.95% employee half + 5.95% employer half) on net business income above the C$3,500 basic exemption, up to the C$74,600 earnings ceiling, plus CPP2 at 8% (4% + 4%) on earnings from C$74,600 up to C$85,000. If you also have a job, the CPP already withheld from it is subtracted first (Schedule 8 logic).
3. CPP tax treatment: the employer half, the enhanced part of the employee half (1% of 5.95%) and all of CPP2 are deductions from income. The base part of the employee half (4.95%) is a non-refundable credit at the lowest federal and BC rates.
4. Net income: employment income + net business income − CPP deduction − RRSP.
5. Federal tax: net income through the 2026 federal brackets, minus 14% of the basic personal amount, the CPP base credit, the EI credit on your job and (only if you have no self-employment income) the Canada employment amount.
6. BC tax: net income through the 2026 BC brackets, minus 5.6% of the BC basic personal amount, the CPP base credit and the EI credit, then minus the BC tax reduction credit.
7. Total: federal tax + BC tax + CPP on self-employment, minus tax withheld at your job and instalments paid.

No employer pays the other half of your CPP when you are self-employed. That is the single biggest reason a driver's tax bill is larger than a same-income employee's: you pay 11.9% instead of 5.95%.

The 2026 figures this calculator uses

What this calculator does not do

• Only British Columbia. Ontario, Alberta and the other provinces are not modelled. Quebec is excluded on purpose: it has its own pension plan (QPP) and a separate provincial return that we cannot reproduce here.
• No GST/HST. GST/HST you collect belongs to the CRA and is separate from income tax. See the GST/HST guide.
• Only the common credits. Credits for a spouse, dependants, medical costs, tuition, donations and benefits such as the Canada Workers Benefit are not included, so your real bill may be lower.
• Capital cost allowance is not calculated. If you own the vehicle and claim CCA, work it out separately and add the business part to other expenses.
• Employment CPP and EI are assumed to have been withheld correctly from your pay.

Frequently asked questions

Sources

All figures are for the 2026 tax year unless stated. Checked on October 11, 2026.

• CRA, Tax rates and income brackets to be used on the 2026 tax return (federal and British Columbia brackets and rates)
• CRA, Adjustment of personal income tax and benefit amounts (federal basic personal amount, Canada employment amount, 2.0% indexation)
• Government of British Columbia, B.C. personal income tax rates and B.C. basic personal income tax credits (basic personal amount C$13,216, tax reduction credit, CPP credit)
• CRA, CPP contribution rates, maximums and exemptions (YMPE C$74,600, basic exemption C$3,500, 5.95%, self-employed maximum C$8,460.90)
• CRA, Second additional CPP (CPP2) contribution rates and maximums (YAMPE C$85,000, 4% each half, self-employed maximum C$832)
• CRA, The Canada Pension Plan enhancement: what it means for you (self-employed split between credit and deduction)
• CRA, Line 22200 and Line 31000 (where the CPP deduction and credit are claimed)
• CRA, EI premium rates and maximums (1.63%, C$68,900, C$1,123.07)
• CRA, Line 31260, Canada employment amount (not available if you are self-employed)
• CRA, Motor vehicle expenses (business-use share of vehicle costs, logbook)
• CRA, Gig economy, Ride sharing and Tax obligations for commercial ridesharing and delivery services (C$30,000 small-supplier rule, ride-sharing from the first fare)
• CRA, Who has to pay required tax instalments and Required tax instalments for individuals (C$3,000 test, due dates)
• CRA, Due dates and payment dates for personal income tax (April 30 payment, June 15 filing for self-employed)