Free self-employed tax estimator with Federal Tax, CPP & Provincial taxes
Everything you need to know about Canadian freelance taxes in 2025
As a general rule, Canadian freelancers should set aside 25-35% of their gross income for taxes. This covers federal income tax, CPP contributions, and provincial tax.
Your exact amount depends on your income level and province. Lower earners may need 20-25%, while those in higher brackets or high-tax provinces like Quebec should set aside 35-40%. Use our calculator above for a personalized estimate based on your province and income.
Canada Pension Plan (CPP) is Canada's social security system. For 2025, self-employed individuals pay 11.9% on net earnings between $3,500 and $71,300.
Unlike employees who split CPP with their employer (5.95% each), self-employed people pay both portions (11.9% total). The maximum CPP contribution for 2025 is approximately $8,000. The good news: you can deduct the employer portion (50%) when calculating your taxable income.
Note: Quebec residents pay into the Quebec Pension Plan (QPP) instead, with similar rates.
The key Canadian tax deadlines for 2025 are:
• June 15, 2025: Deadline to file your 2024 tax return (self-employed)
• April 30, 2025: Deadline to pay any taxes owed for 2024 (even though filing is
June
15)
• Quarterly Installments: March 15, June 15, September 15, December 15 (if you owe
more than $3,000 in taxes)
Important: While self-employed individuals get until June 15 to file, any taxes owed must still be paid by April 30 to avoid interest charges. The CRA charges interest on late payments from May 1.
Canadian freelancers can deduct reasonable business expenses that are incurred to earn income, including:
• Home office expenses (portion of rent, utilities, insurance, property tax)
• Vehicle expenses (business mileage, fuel, insurance, maintenance)
• Office supplies and equipment
• Professional fees (accounting, legal, memberships)
• Advertising and marketing costs
• Business insurance and licenses
• Meals and entertainment (50% deductible)
• Phone and internet (business portion)
• Professional development and training
Keep all receipts for at least 6 years. The CRA may request documentation during an audit or review.
You must register for GST/HST if your gross revenue from taxable supplies exceeds $30,000 in any single calendar quarter or over four consecutive quarters (2025 threshold).
You can also voluntarily register even if you're below the threshold. Benefits include claiming Input Tax Credits (ITCs) to recover GST/HST paid on business expenses.
Once registered, you'll charge GST/HST on your invoices (5% GST, or 13-15% HST depending on province), file returns quarterly or annually, and remit the net tax to the CRA. Most provinces use HST (Harmonized Sales Tax), while Alberta, BC, Saskatchewan, Manitoba, and Quebec use separate GST/PST or GST/QST systems.