Everything you need to know about filing taxes as a self-employed Canadian — brackets, CPP, GST/HST, deductions, and quarterly instalments.
Filing taxes as a Canadian freelancer or independent contractor is significantly different from being a salaried employee. No taxes are withheld from your cheques, no employer matches your CPP, and you're responsible for remitting GST/HST if applicable. This guide covers every major tax obligation for Canadian self-employed workers in 2024.
Enter your income and province — get your estimated federal tax, provincial tax, CPP, GST/HST, and quarterly instalments in seconds.
Try the Free Tax EstimatorIf you earn income outside of traditional employment — as a freelancer, contractor, consultant, or gig worker — you are generally considered self-employed by the CRA. You must report this income on your personal tax return using Form T2125 (Statement of Business or Professional Activities).
You are considered self-employed if you:
Canada uses a progressive tax system — the more you earn, the higher the rate on additional income. These are the 2024 federal brackets after the basic personal amount ($15,705) is applied:
| Taxable Income | Federal Tax Rate |
|---|---|
| First $55,867 | 15% |
| $55,867 to $111,733 | 20.5% |
| $111,733 to $154,906 | 26% |
| $154,906 to $220,000 | 29% |
| Over $220,000 | 33% |
As a self-employed person, your "taxable income" is your gross revenue minus allowable business deductions (more on those below). If you earned $90,000 in freelance revenue and had $15,000 in business expenses, your taxable income is $75,000.
In addition to federal tax, every province and territory levies its own income tax. Provincial rates vary significantly:
| Province | Lowest Rate | Top Rate |
|---|---|---|
| Alberta | 10% | 15% |
| British Columbia | 5.06% | 20.5% |
| Ontario | 5.05% | 13.16% |
| Quebec | 15% | 25.75% |
| Manitoba | 10.8% | 17.4% |
| Saskatchewan | 10.5% | 14.5% |
Use our free tax estimator to calculate your combined federal + provincial rate for any province.
As a self-employed person, you pay both the employee and employer share of CPP — a total of 5.8% on net self-employment income in 2024. Employees only pay half (2.89%), split with their employer.
CPP is not optional. It is calculated on your net self-employment earnings and added to your tax bill. The silver lining: you can deduct the employer portion (half of what you pay) as a business expense.
You must register for a GST/HST number once your total revenue from taxable supplies exceeds $30,000 in any 12-month period. This is the "small supplier threshold."
Unlike employees who have taxes withheld each paycheque, self-employed Canadians often need to pay tax in quarterly instalments. The CRA requires this if you owe more than $3,000 in net tax in the current year AND either of the two previous years.
Missing instalments incurs interest charges. The safest approach: set aside 25-30% of every invoice payment and pay quarterly. Our tax calculator shows your estimated quarterly instalment automatically.
The biggest tax advantage of self-employment is deducting legitimate business expenses to reduce your taxable income. Common deductions include:
All deductions must be for income-earning purposes and supported by receipts. The CRA recommends keeping records for at least 6 years.
All business income and expenses are reported on Form T2125 (Statement of Business or Professional Activities), which is attached to your T1 personal tax return. Key sections include:
Most tax software (TurboTax, SimpleTax/Wealthsimple Tax, H&R Block) guides you through T2125 with prompts. The deadline to file your T1 as a self-employed person is June 15 (though any balance owing is still due April 30).
Get your federal tax, provincial tax, CPP, GST/HST, quarterly instalments, and effective rate in under 30 seconds. Works for all provinces and territories.
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