How much tax do freelancers pay in Canada?

Freelancers in Canada pay federal income tax (15-33%), provincial income tax (varies by province), and CPP contributions (11.9% of pensionable earnings as both employee and employer portions). Your effective tax rate depends on your province and taxable income after deductions.

Do I need to charge GST/HST as a freelancer?

You must register for and charge GST/HST once your revenue exceeds $30,000 over four consecutive calendar quarters. Below this threshold, registration is voluntary but can be beneficial if you have significant business expenses.

What expenses can I deduct as a Canadian freelancer?

Common deductions include home office expenses, computer equipment, software subscriptions, internet and phone bills, professional development, marketing costs, travel expenses, and professional insurance premiums.

When are freelance taxes due in Canada?

Self-employed individuals must file their tax return by June 15, but any taxes owed are due by April 30. If you owe more than $3,000 in net tax, you must make quarterly instalment payments.

How is CPP calculated for self-employed workers?

Self-employed individuals pay both the employee and employer portions of CPP, totalling 11.9% of pensionable earnings between $3,500 and $71,300 (2025 figures). This means the maximum CPP contribution for self-employed workers is approximately $8,068.

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Understanding Freelance Taxes in Canada

As a self-employed worker in Canada, you're responsible for calculating and remitting your own income taxes, CPP contributions, and potentially GST/HST. Unlike employees who have taxes deducted at source, freelancers must estimate their tax obligations and make quarterly instalment payments.

What Taxes Do Canadian Freelancers Pay?

Federal Income Tax: Progressive tax brackets from 15% to 33% based on your taxable income.
Provincial Income Tax: Varies by province, with rates ranging from 4% (Nunavut) to over 25% (Quebec).
CPP Contributions: Self-employed individuals pay both the employee and employer portions (11.9% of pensionable earnings).
GST/HST: If your revenue exceeds $30,000 in four consecutive quarters, you must register and collect sales tax.

How to Reduce Your Freelance Tax Burden

Canadian freelancers can deduct legitimate business expenses from their gross income, including home office costs, equipment, software subscriptions, professional development, and travel expenses related to business. Keeping detailed records is essential for maximizing your deductions.

Quarterly Tax Instalments

If you owe more than $3,000 in net tax for the current year or either of the two preceding years, the CRA requires you to make quarterly instalment payments. These are due on March 15, June 15, September 15, and December 15.

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