Question 1

How do I calculate my freelance rate in Canada?

Accepted Answer

Start with your desired annual salary. Add 15-25% for risk premium, 10-20% for profit margin, and account for non-billable time (vacation, marketing, admin). Divide your total target income by your billable hours per year to get your hourly rate.

Question 2

Do I need to charge GST/HST as a freelancer in Canada?

Accepted Answer

You must register for GST/HST once your annual revenue exceeds $30,000. In provinces with HST (Ontario, Nova Scotia, New Brunswick, etc.), you charge the combined rate. In other provinces, you charge 5% GST separately from provincial sales tax.

Question 3

How many billable hours do freelancers work in Canada?

Accepted Answer

Most Canadian freelancers log 1,000–1,400 billable hours per year, after accounting for vacation (2-3 weeks), stat holidays (10-12 days), marketing/business development (2-3 weeks), and administrative tasks. This is much lower than the 2,080 hours of a full-time employee.

Question 4

What CPP contributions do self-employed Canadians pay?

Accepted Answer

Self-employed Canadians pay both the employee and employer portions of CPP — approximately 11.9% of net business income between the basic exemption ($3,500) and maximum pensionable earnings (approximately $73,200 in 2026).

Canadian Freelance Rate Calculator for 2026

Industries Covered

Province-Specific Calculations