How the Canada self-employed (federal) calculator is verified

Inputs

Input	Field	Type
Annual net business income (CAD)	`annualProfit`	number

The formula

Each derived value below is computed by the Valem engine from the expression shown, in this order. Nothing else runs — there is no hidden code path.

Derived value	Field	Formula (JSONata)
CPP + CPP2	`cpp`	`$round($const.cppRate * $max([0, $min([annualProfit, $const.ympe]) - $const.cppExemption]) + $const.cpp2Rate * $max([0, $min([annualProfit, $const.yampe]) - $const.ympe]), 2)`
Taxable Income	`taxableIncome`	`$round($max([0, annualProfit - cpp / 2]), 2)`
Federal income tax	`federalTax`	`($t := taxableIncome; $round($max([0, $const.r1 * $min([$t, $const.b1]) + $const.r2 * $max([0, $min([$t, $const.b2]) - $const.b1]) + $const.r3 * $max([0, $min([$t, $const.b3]) - $const.b2]) + $const.r4 * $max([0, $min([$t, $const.b4]) - $const.b3]) + $const.r5 * $max([0, $t - $const.b4]) - $const.r1 * $const.bpa]), 2))`
Net income / year (federal only)	`netIncome`	`$round($max([0, annualProfit - cpp - federalTax]), 2)`

Rates and thresholds

The expressions above read these as $const. They are the figures the annual refresh replaces, so they live as data rather than being written into the formulas — which is what makes a year-on-year change a one-line diff instead of an edit to arithmetic.

Constant	Value
`cppExemption`	3500
`ympe`	74600
`yampe`	85000
`cppRate`	0.119
`cpp2Rate`	0.08
`bpa`	16452
`b1`	58523
`b2`	117045
`b3`	181440
`b4`	258482
`r1`	0.14
`r2`	0.205
`r3`	0.26
`r4`	0.29
`r5`	0.33

Test vectors (3)

Every case is executed against this model on each build, by the Java engine and independently by a JavaScript one. A mismatch of a single cent fails the build, so the page cannot ship advertising a figure the model no longer produces.

Case 1 — 80,000 CAD net business income — a typical full-time contractor

given `annualProfit`	80000
expect `cpp`	8892.9
expect `taxableIncome`	75553.55
expect `federalTax`	9381.2
expect `netIncome`	61725.9

Case 2 — 30,000 CAD — part-time, below the first earnings ceiling

given `annualProfit`	30000
expect `cpp`	3153.5
expect `taxableIncome`	28423.25
expect `federalTax`	1675.98
expect `netIncome`	25170.52

Case 3 — 200,000 CAD — above both CPP ceilings

given `annualProfit`	200000
expect `cpp`	9292.9
expect `taxableIncome`	195353.55
expect `federalTax`	38664.58
expect `netIncome`	152042.52

Sources

Canada.ca — Contributions to the Canada Pension Plan · checked 2026-08-22
Canada.ca — Current year tax rates and income brackets (2026) · checked 2026-08-22

Check it yourself — and reuse it

The whole model as JSON — inputs, outputs, formulas, vectors and sources in one re-runnable document.

This model is published under CC BY 4.0: use it, adapt it, build on it, with attribution. The licence covers the model — the expression of each rule and the arrangement of the catalog. The rates and thresholds are law, and nobody licenses those; the sources above are where they come from.

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