Freelance Rate
Calculator Canada 2026
Find the minimum hourly rate you need to charge as a Canadian freelancer to match your target income — accounting for CPP at double rate, no employer benefits, vacation pay, and all self-employment costs.
Your freelance details
Freelance rate calculations are estimates. Tax rates are approximations — use the income tax calculator for your precise take-home. GST/HST rules may vary. Consult an accountant before setting your rates. Not financial advice. Terms →
Employees pay 5.95% CPP — their employer matches it. Self-employed pay both sides: 11.9% of net earnings up to $71,300. That's an extra $4,000-$5,000/year vs employed workers at the same income level. Half is deductible (reducing income tax), but it's still a significant cost that your rate must cover.
An employer benefits package (health, dental, life, disability) costs employers $5,000-$15,000/year per employee. As a freelancer, you replace this with individual policies, which are typically more expensive and less comprehensive. Factor this into your rate — it's part of your total compensation comparison.
A typical employee works 2,080 hours per year. As a freelancer, you'll spend time on admin, sales, networking, professional development, and unbilled client work. Most experienced freelancers bill 1,000-1,400 hours annually. Building your rate on 2,000 billable hours will leave you significantly underpaid.
Once your revenue exceeds $30,000 in any 12-month period, you must register for GST/HST. You can register voluntarily before that — and should, since it lets you claim Input Tax Credits on business expenses. Add GST/HST on top of your rate (clients in HST provinces pay 13-15% more).
Frequently asked questions
How much should I charge as a freelancer in Canada?
Your rate depends on your target income, billable hours, and province. A rough starting point: take your desired annual salary (e.g., $80,000), add 30-40% for CPP, benefits, and overhead, then divide by billable hours (e.g., 1,000). At $80K target, that's roughly $80K × 1.35 ÷ 1,000 = $108/hour before tax — then add another 30% for income tax, bringing the minimum to ~$55-65/hour depending on province.
Do Canadian freelancers have to charge GST/HST?
Once your revenue (not profit) exceeds $30,000 in any rolling 12-month period, you must register for GST/HST with CRA and charge it on your services. You then remit it to CRA quarterly or annually, minus Input Tax Credits for your business expenses. Not charging GST/HST when required is a CRA compliance issue — but the tax is passed on to clients, not paid from your own pocket.
What's the difference between a freelancer and incorporated contractor?
As a sole proprietor freelancer, your business income flows directly to your personal tax return. As a corporation, you pay the small business rate (9% federal, plus provincial) on retained earnings and only pay personal tax when you pay yourself salary or dividends. Incorporation makes sense when your net income consistently exceeds $80,000-$100,000. Consult an accountant for your specific situation.