Freelance Rate Calculator — Canada
Canadian freelancers pay federal and provincial income tax, plus both halves of CPP contributions (11.9% on pensionable earnings up to the YMPE, with an enhanced second ceiling above it). There’s no employer to remit for you, so the CRA expects quarterly instalments once you owe more than $3,000 in a year. Provincial rates vary widely — from Alberta’s flat-ish 10% opening rate to Quebec’s much higher combined burden — so treat this as a planning estimate.
Tax estimate: 2026 tax year (federal + average provincial). Details in theCanada tax calculator.
What Canadian freelancers need to price in
- This estimate applies a simplified ~10% average provincial rate; your province may differ significantly.
- Self-employed people pay both employee and employer CPP shares (11.9% combined, plus CPP2 above the first ceiling).
- Register for GST/HST once revenue passes $30,000 over four consecutive quarters.
- Quarterly instalments are due March, June, September and December once you owe over $3,000.
Data reviewed: August 2026. Primary source:CRA — Small businesses and self-employed income.
Worked example
Targeting $85,000 pre-tax with$5,000 of annual costs, billing 25 hours a week with 6 weeks off, gives a billable year of 1,150 hours. The calculator adds your margin, divides, and also estimates the tax bite on that income under the 2026 tax year (federal + average provincial) — so you can see in one glance what the rate on your invoices turns into in your pocket.
Frequently asked questions
What is a good freelance hourly rate in the Canada?
There is no universal “good” rate — it depends on your field, seniority and clients. What matters is that your rate covers your target income, your business costs, your unbillable time, and the tax profile described below. Use the calculator above with honest inputs; a Canadian freelancer billing 25 hours a week with 6 weeks off needs a rate roughly double the equivalent employee hourly wage to end up in the same place.
How much should a Canadian freelancer set aside?
A common range is 25–30% of net income for most provinces at moderate incomes, and more in Quebec or at six-figure profits. CPP alone takes nearly 12 cents of every dollar up to the ceiling, which surprises people who only budget for income tax.
Is this rate before or after tax?
Before tax. The target income you enter is pre-tax income; the calculator tells you what to bill to reach it. To see what you'll keep, run your profit through the Canada Tax Set-Aside Calculator linked below.
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Estimates for planning only — not tax or financial advice. Tax calculation is simplified (see the tax calculator for assumptions) and excludes state/provincial variations where noted. Full disclaimer.