Please check line 42100 for your CPP payable for self-employment this may explain the high rate that you see. In Turbotax online you may need to go the detailed tax summary to see this line, or it will be available on your PDF return.
It is erroneous to assume a tax rate of 67% on any bracket of income. For authoritative information on Canadian income tax rates, the Canada Revenue Agency provides a detailed breakdown, accessible at this link. Tax liability in Canada is calculated based on the total amount of income earned, taking into account various federal and provincial tax rates.
Misinterpretations may arise regarding how self-employment income is taxed. It’s important to understand that taxes are levied on net income, which is your total income minus any allowable expenses. For example, if you earned $100,000 and reported $33,000 in operational expenses, your taxable income would be $67,000. This system ensures that individuals are taxed fairly based on their actual profit, rather than their gross income.
You can review your T1 General Form to see how you are being taxed federally. Please see step 5 on this link.