E-commerce Seller Tax Calculator Canada
Estimate what you could get back as a e-commerce seller in Canada. Applies Canada marginal rates including province tax. Free, and no sign-up.
What e-commerce sellers can claim in Canada
- Cost of goods sold and inventory
- Shipping, postage and packaging
- Platform and marketplace fees
- Payment processing and merchant fees
- Advertising and paid social campaigns
- Product photography costs
- Warehouse or storage unit rent
- Capital cost allowance on equipment
- Customs duties and import charges
- Returns and refund costs
- Home office (T2125)
- GST/HST input tax credits
- CPP contributions on self-employment
In Canada an employee can only deduct employment expenses on Form T777 where the employer certifies the conditions of employment on a signed Form T2200, and the allowable categories are narrow (with special rules for commissioned, transport, tradesperson, apprentice mechanic, artist and musician employees), whereas a self-employed person reports on Form T2125 (or T2042 farming, T2121 fishing, T776 rental) and may deduct any reasonable business expense plus capital cost allowance.
You can only claim the work-related portion, you must have spent the money yourself without reimbursement, and you need a record to prove it.
Frequently asked questions
What can a e-commerce seller claim on tax in Canada?
Commonly claimed deductions include cost of goods sold and inventory, shipping, postage and packaging, platform and marketplace fees, payment processing and merchant fees. In Canada an employee can only deduct employment expenses on Form T777 where the employer certifies the conditions of employment on a signed Form T2200, and the allowable categories are narrow (with special rules for commissioned, transport, tradesperson, apprentice mechanic, artist and musician employees), whereas a self-employed person reports on Form T2125 (or T2042 farming, T2121 fishing, T776 rental) and may deduct any reasonable business expense plus capital cost allowance.
How much tax does a e-commerce seller pay in Canada?
It depends on your income and your province. The calculator applies Canada marginal rates including province tax.
Do I need to sign up to use this calculator?
No. This calculator is completely free and requires no account. Nothing you enter is saved.
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Estimate only — not tax advice. Confirm with the CRA or a registered tax professional.