How much of each payment to set aside for tax.
Freelance money arrives with tax already inside it. Enter what you bill each month and where your clients are, and you'll get one percentage to move out of every payment, sales tax and income tax included.
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Sales tax isn't your money
When a client pays a $1,130 invoice in Ontario, $130 of it belongs to the government from the moment it lands.
The trouble is that it lands in the same account as everything else, and most freelancers file once a year. Twelve months of HST sitting in a chequing account looks a lot like spending money. The fix is boring and it works: move the tax portion out as soon as each payment arrives, into a separate account you don't touch.
The percentage above is that move. It covers sales tax on the whole payment and your chosen income tax rate on the fee, so one transfer handles both.
2026 GST/HST rates by province
| Province or territory | Tax | Rate |
|---|---|---|
| Alberta | GST | 5% |
| British Columbia | GST + PST | 5% + 7% |
| Manitoba | GST + RST | 5% + 7% |
| New Brunswick | HST | 15% |
| Newfoundland and Labrador | HST | 15% |
| Northwest Territories | GST | 5% |
| Nova Scotia | HST | 14% |
| Nunavut | GST | 5% |
| Ontario | HST | 13% |
| Prince Edward Island | HST | 15% |
| Quebec | GST + QST | 5% + 9.975% |
| Saskatchewan | GST + PST | 5% + 6% |
| Yukon | GST | 5% |
In the HST provinces, one combined tax replaces the GST. Quebec's QST is registered and filed with Revenu Québec. The PST in British Columbia and Saskatchewan and the RST in Manitoba apply to goods and only some services, such as certain software and professional services, so check whether yours is one of them.
The $30,000 line
You're a small supplier until your taxable sales pass $30,000 in a single calendar quarter or over four consecutive quarters. Until then, charging GST/HST is optional.
- Cross it over four quarters and you stop being a small supplier at the end of the month after that quarter. Charge tax from then on.
- Cross it in one quarter and the sale that takes you over is already taxable.
- Register early if your costs carry a lot of GST/HST. Registered businesses get it back as input tax credits.
Not registered yet? Choose "Not yet" above and the calculator will tell you roughly when you'll cross the line at your current pace.
Questions
Do I have to charge GST/HST as a freelancer?
Once your taxable sales pass $30,000 over four consecutive calendar quarters (or in a single quarter), you are no longer a small supplier and need to register, charge, and remit GST/HST. Below that you can register voluntarily, which lets you claim back the GST/HST you pay on business costs.
Which rate do I charge clients in other provinces?
For most services, the rate follows where your client is, not where you are. An Alberta freelancer billing a client in Ontario generally charges 13% HST, and an Ontario freelancer billing a client in Alberta generally charges 5% GST. Clients outside Canada are usually zero-rated.
What are input tax credits?
Input tax credits (ITCs) are the GST/HST you paid on things you bought for the business, like a laptop, software, or a share of your phone bill. Once you are registered, you subtract them from the tax you collected, so you only remit the difference.
How much should I set aside for income tax?
It depends on your total income and province, so the calculator lets you choose. Many freelancers use somewhere around 25% to 30% of their profit as a starting point, which also leaves room for CPP contributions, since self-employed people pay both the employee and employer share.
When is GST/HST due?
Most small freelancers file annually. If you are a sole proprietor with a December 31 year end, the return is generally due June 15 and the payment April 30. Quarterly or monthly filing is available too, and CRA may ask for instalments once you owe more than $3,000 a year.
Is this tax advice?
No. It is a planning tool that shows the shape of what you will owe. Sales tax has plenty of special cases, so check CRA guidance or an accountant for your situation.
Park the tax money where you can see it.
The easiest tax bill is the one that was set aside all year. In CalmDollar, sales tax and income tax each get their own envelope, funded from every payment, so April is just a transfer. Free to start.
