ExampleAnnual income $100,000 · Monthly revenue $10,000 · Ontario · Including CPP

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🏦Tax Reserve & Installment Planner2026 CRA Rates
Set aside: $2,508/moReserve rate: 0.3%Quarterly instalment: $7,524
Tax Reserve & CRA Instalments
💰Income & Revenue
Expected Annual Net Income?
$
Average Monthly Revenue?
$
Annual income tax$21,634
Double CPP$8,461
Total owing / year$30,095
Reserve / Month
$2,508
set aside each month
Reserve Rate
0.3%
of monthly revenue
Quarterly Instalment
$7,524
Mar · Jun · Sep · Dec 15
Total Annual Owing
$30,095
tax + CPP combined
📊Annual Tax Obligations
Expected Annual Net Income$100,000
Federal + Provincial Income Tax$21,634
Self-Employed CPP (both halves)$8,461
Total Owing per Year$30,095
Quarterly CRA Instalment$7,524
Monthly Reserve Needed$2,508/mo
📆CRA Instalment Calendar
March 15
Q1 Instalment$7,524
June 15
Q2 Instalment$7,524
September 15
Q3 Instalment$7,524
December 15
Q4 Instalment$7,524
Filing deadline (self-employed): June 15. Balance owing deadline: April 30.
📅Cumulative Reserve Growth▼
📅CRA Tax Deadlines
March 15
Q1 Installment
April 30
Balance owing due
T4/T1 balance
June 15
Q2 Installment + T1 Filing
Self-employed filing deadline
September 15
Q3 Installment
December 15
Q4 Installment
⚠ Late installments trigger CRA interest at the prescribed rate (currently ~ 9% annualized) plus a surcharge - even if you pay the full balance by April 30.
Trigger: Install if you owe more than $3,000 in combined federal + provincial tax (or $1,800 in QC). Each quarterly payment: $7,524.
CRA – Self-employed tax filing ↗
🧾GST / HST Remittance▲
Your province
HST13%
▸$30,000 threshold: register for GST/HST once revenue exceeds $30,000 in any 12 months. Collect on behalf of CRA.
▸Remittance schedule: Annual if revenue under $1.5M · Quarterly if $1.5M–$6M · Monthly above $6M.
▸GST/HST ≠ income: the tax you collect from clients is not your money - set it aside separately in a dedicated account.
▸Quick Method: Revenue under $400,000? Remit a flat percentage instead of tracking every input tax credit (ITC). Saves time.
▸Input Tax Credits (ITCs): claim back GST/HST paid on eligible business expenses - software, equipment, professional fees.
💡Self-Employed Money Rules▼
🔗Business Calculators▼

What's Next?

Self-Employment CostSee the full picture - double CPP, no EI, and every deductible expenseShould You Incorporate?Compare your sole-prop tax bill against the corporate SBD rateBudget PlannerBuild a monthly budget that accounts for tax reserves and business expensesAccount OptimizerDecide where to put post-tax business profits - RRSP, TFSA, or FHSA

Estimates based on 2026 CRA rates. Instalments required if owing >$3,000 combined federal + provincial ($1,800 in QC). GST/HST registration mandatory above $30,000 annual revenue. Filing deadline for self-employed: June 15 (balance due April 30). Source: canada.ca. Consult a CPA. Not financial advice.

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About this calculator

Updated April 2026

This self-employed tax reserve calculator tells you how much of each invoice to set aside for CRA - income tax, both sides of CPP, and HST/GST if you're registered. Using this tool monthly prevents the #1 new-freelancer disaster: owing $20,000+ at tax time with none of it saved.

What you can do with it

  • Calculate your per-invoice tax reserve as a % of gross billing.
  • Include both CPP portions + HST remittance in your holdback.
  • See how much to set aside if you also have T4 income alongside contracts.
  • Plan quarterly CRA instalments so you avoid instalment interest.

How the math works

Tax reserve = federal + provincial income tax on your total projected annual income (at your marginal bracket) + combined 11.9% CPP and 8.0% CPP2 + HST collected (if registered) minus expected input tax credits. The calculator converts this to a holdback percentage of gross billing so you can flag the amount aside on each deposit.

Canadian context - 2026

A typical single self-employed Canadian earning $120,000 net should hold back roughly 33–38% of gross billings (~30% income tax + 8% self-employed CPP). If you're HST-registered at 13%, your holdback on gross billings is closer to 42–45% until you pay HST each quarter.

Frequently asked questions

How much should I set aside for taxes as a self-employed person in Canada?

A rough rule of thumb is 25–35% of gross income, depending on your province and total earnings. This covers federal and provincial income tax, CPP self-employed contributions (both employee and employer shares), and any HST/GST remittances. The tax reserve calculator gives a more precise estimate based on your province and income.

What happens if I miss a CRA instalment deadline?

CRA charges instalment interest on late or insufficient quarterly payments. The rate is the prescribed interest rate (currently 8–10% annualized) on the shortfall. If you consistently underpay, CRA may also add instalment penalties. Setting aside funds each month into a separate account avoids this risk.

Should I register for GST/HST?

GST/HST registration is mandatory once your worldwide taxable revenues exceed $30,000 in a calendar quarter or over four consecutive quarters. Some businesses register voluntarily before that threshold to claim input tax credits on business purchases. Once registered, you must collect and remit GST/HST on taxable supplies.

Go deeper - related guides

Long-form explainers that pair with this calculator.