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🧮 Alberta Contractor Tax Calculator
Calculate your take-home pay as a self-employed contractor in Alberta, Canada (2025)
Gross Annual Income
$200,000
Before taxes and deductions
Net Monthly Take-Home
$11,767
After all taxes and CPP/EI
📊 Annual Tax Breakdown (2025)
Gross Income:
$200,000
Federal Income Tax:
-$31,500
Alberta Provincial Tax:
-$17,750
CPP Contributions (Base + Enhanced):
-$8,464
EI Contributions (Optional):
-$1,075
Net Annual Income:
$141,211
💼 Managing Your Business Account as a Contractor
As a sole proprietor contractor, here's how to properly manage your business account funds:
✅ What you CAN do:
- Pay yourself regularly: Transfer money to your personal account as "owner's draw" - this is your take-home pay
- Business expenses: Office supplies, software subscriptions, professional development, equipment
- Home office deduction: Portion of utilities, internet, phone bills (keep detailed records)
- Professional services: Accountant fees, legal fees, business insurance
- Vehicle expenses: If used for business (gas, maintenance, insurance portion)
- Save for taxes: Set aside 25-30% of each payment for quarterly tax installments
❌ What you should NOT do:
- Use business funds for personal expenses (groceries, entertainment, personal shopping)
- Mix business and personal transactions without proper documentation
- Forget to track business vs personal use of expenses
💡 Smart Money Management Tips:
- Separate accounts: Keep business and personal finances completely separate
- Regular transfers: Pay yourself monthly like a salary (e.g., $11,767/month based on your net)
- Tax savings: Open a separate high-interest savings account for tax obligations
- Track everything: Use accounting software like QuickBooks or Wave
- Quarterly installments: If you owe >$3,000 annually, pay CRA quarterly to avoid interest
⚠️ Important Notes:
• These calculations are estimates based on 2025 tax rates and brackets
• You'll need to file T1 General + T2125 forms annually
• If earning >$30k/year, register for GST/HST and charge clients accordingly
• Consider consulting a tax professional for your specific situation
• EI is optional for self-employed but recommended for income protection
• Tax rates and brackets are subject to change annually
📋 Disclaimer: This calculator is for informational purposes only and should not be considered as professional tax advice. Tax laws and rates change frequently, and individual circumstances vary. Always consult with a qualified tax professional or accountant for personalized advice regarding your specific tax situation. The calculations provided are estimates and may not reflect your actual tax obligations.
📚 Official Tax References