Freelance Tax Set-Aside 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.
2026 tax year (federal + average provincial). Data reviewed August 2026.
What’s in this estimate
- 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.
Primary source: CRA — Small businesses and self-employed income. Rates and thresholds are reviewed when new tax-year figures are published; always confirm current numbers against the official source before filing.
How to use the number
The headline percentage applies to gross revenue, not profit — because invoices are what actually land in your account. When a client pays $5,000, move that percentage into a separate tax account the same day. The buffer input adds a small cushion on top of the pure calculation: prepayment systems and mid-year rate changes punish exact planning.
Frequently asked questions
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.
Do freelancers pay EI in Canada?
Not by default. Self-employed Canadians can opt into EI special benefits (like parental leave) but most don’t; this calculator excludes EI.
Should I incorporate?
Incorporation defers tax when you can leave profits in the company (small business rate ~9–12% federally+provincially on the first $500k), but adds cost and complexity. It usually starts to pay off when you consistently earn more than you spend personally.
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Simplified estimate for planning only — not tax advice. It assumes all profit is taxed as self-employment income for a single individual with no other income, and excludes credits, reliefs and regional variations noted above. Confirm withCRA — Small businesses and self-employed income or an accountant.Full disclaimer.