How Much to Set Aside for Taxes as a Freelancer (2026)
Work out what percentage of each payment to put aside for income tax and CPP if you are self-employed in Ontario, British Columbia or Alberta, plus a monthly target and the quarterly instalment amount. Uses the same 2026 formulas as our self-employed tax calculator.
Same formulas as this page, plus:
- a monthly income and expense log so your set-aside % updates as the year goes
- instalment due dates and amounts, and whether you likely need them
- every rate on an editable Rates tab with its official source
- blank file + filled example; works in Excel, Google Sheets and LibreOffice
How the set-aside is calculated
The calculator estimates your full 2026 bill: federal and provincial income tax plus CPP and CPP2 on self-employment earnings, minus tax already withheld from any job. Dividing that by your business profit gives the share of each dollar of profit to move into a separate savings account. It applies the 2026 federal brackets (14% to 33%) and credits, Ontario's surtax, tax reduction, LIFT credit and Health Premium, the BC tax reduction, and Alberta's 2026 brackets. For a line-by-line breakdown, use the self-employed tax calculator. Quebec? See the Quebec instalment calculator.
Frequently asked questions
How much should a freelancer set aside for taxes in Canada?
It depends on your profit and province. As a rough guide for 2026, a single freelancer with $50,000 of profit and no other income should put aside about 22% to 23% of every dollar of profit for income tax and CPP (about 23.0% in Ontario, 22.4% in BC and Alberta). The calculator gives your exact percentage.
Why is the percentage so high at low incomes?
Self-employed people pay both halves of CPP: 11.9% of net earnings between $3,500 and $74,600. That applies from the first dollar above $3,500, before income tax even starts.
Is the set-aside based on revenue or profit?
On profit: revenue minus deductible business expenses. If you prefer to save from each payment you receive, multiply the percentage by your profit margin; the calculator also shows how much to keep from each $1,000 of profit.
Do I need to pay quarterly instalments?
If your net tax owing (income tax minus tax withheld) is over $3,000 for 2026 and was also over $3,000 in 2025 or 2024, the CRA expects instalments on March 15, June 15, September 15 and December 15. CPP on self-employment is included in the instalment amount.
When is the 2026 balance due?
April 30, 2027, even though self-employed people have until June 15, 2027 to file.
Does this include GST/HST?
No. GST/HST you collect is not your money; keep it separate from this set-aside. You must register once your taxable sales pass $30,000 over four consecutive calendar quarters.
Sources
- CRA: Current year tax rates and income brackets (2026)
- CRA: CPP contribution rates, maximums and exemptions
- CRA: T4127 Payroll Deductions Formulas (July 2026)
- CRA: Income tax instalments
- CRA: When to register for and start charging GST/HST
Not tax advice. Estimate for 2026 using CRA and provincial rates published as of October 18, 2026, for a single person with no other credits. Covers Ontario, British Columbia and Alberta only. Excludes GST/HST, optional EI for self-employed people, capital gains, dividends and refundable credits.