Tax & the CRA

Depreciating tools, vehicles and equipment as a Canadian tradesperson: Class 8, 10, 10.1 and 50, the 2026 $39,000 vehicle cap, and the half-year rule explained.

When self-employed Canadian trades pay quarterly tax instalments: the $3,000 trigger ($1,800 QC), the Mar/Jun/Sep/Dec dates, the three methods, and interest.

Sole proprietor tax in Canada: net profit on Form T2125 flows to your personal T1, the 2026 federal brackets, the $16,452 Basic Personal Amount and a worked example.

The 2026 federal brackets (14% to 33%), how provincial tax stacks on top, marginal versus average rate, and combined top rates by province for tradespeople.

The $30,000 small-supplier threshold, registering, charging the right GST/HST rate by province, input tax credits and the Quick Method, for Canadian trades.

Self-employed CPP at 11.90% (max $8,460.90) plus CPP2 at 8% (max $832): why you pay both halves, the 2026 maximums, the offsets, and a worked example.

What a self-employed tradesperson can deduct: section 9 business expenses, home office, tools and the Tradesperson Tool Deduction, plus a CCA overview for 2026.

Per-km versus actual-cost vehicle claims, the CRA reasonable allowance (73c/67c), the Class 10.1 $39,000 cap and the 2026 $350 interest and $1,100 lease limits.

How the GST/HST Quick Method works for Canadian tradespeople: who can elect it (under $400,000), the 1% credit on the first $30,000, and when it saves money.

Claiming back the GST/HST you pay as a Canadian tradesperson: how ITCs work, the documentary tiers (under $100 / $100 to $500 / $500+), and the common mistakes.

The T2125 self-employment form line by line for Canadian trades: where income, subcontracts, vehicle costs, CCA and business-use-of-home go, and the audit traps.

When a Canadian tradesperson hits capital gains: selling the business, equipment or property, recapture vs gain, the one-half inclusion rate, and Schedule 3.

What to do when you owe the CRA and cannot pay: file anyway, payment arrangements, taxpayer relief (RC4288), the Voluntary Disclosures Program, and daily interest.

How a self-employed tradesperson claims business-use-of-home on the T2125: the exclusive-use test, eligible costs, the loss limit, and a worked example.

The $1,000 employed-tradesperson tool deduction on Form T777: who qualifies, the T2200 and Canada Employment Amount offset, and the uncapped self-employed rule.

The six-year record rule for Canadian trades, what to keep, why construction is a CRA underground-economy target, and the audit red flags to avoid.

The complete GST/HST guide for Canadian trades: the $30,000 threshold, the 29-day rule, the all-13 rate table, input tax credits and the Quick Method.

The complete self-employed tax guide for Canadian trades: CPP 11.90% and CPP2, EI, instalments over $3,000, the June 15 / April 30 dates and key deductions.