Freelancer Invoicing in Canada
Guide • Canada • last updated October 2026
How Canadian freelancers invoice clients: setting rates, GST/HST, what to include, and getting paid, with a free rate calculator.
Freelancing in Canada means being your own billing department. This guide covers setting a rate, handling GST/HST, what to put on a freelance invoice, and getting paid on time. Use the freelance rate calculator and the free invoice generator.
Setting your rate
Price from your target income, not just the market. Add up the income you want, your business expenses, and the taxes you will owe, then divide by the billable hours you can realistically work. That gives a floor for your hourly rate.
GST/HST for freelancers
Once your revenue passes the small-supplier threshold you must register for GST/HST, charge it to Canadian clients based on their province, and remit it. Below the threshold you can register voluntarily to claim input tax credits. Confirm the current threshold with the CRA.
What to put on a freelance invoice
- Your name or business name and contact details, plus your GST/HST number if registered.
- The client's details, an invoice number and date.
- A clear description of the work, hours or deliverables, and rates.
- Subtotal, tax, total in CAD, and payment terms.
Getting paid
Use short terms, ask for a deposit on larger projects, and offer online payment. Send the invoice the day the work is done, and set a reminder for the due date.
A worked example
A freelance writer wants $70,000 after $8,000 of expenses, working 1,300 billable hours. That is about $60 per hour. On a 20-hour project in BC, the invoice is $1,200 plus 5% GST, with Net 15 terms and a pay-now link.
Registering your business and taxes
Most Canadian freelancers operate as sole proprietors, which is simple to set up, though some incorporate as they grow. Either way, once you pass the small-supplier threshold you register for GST/HST and charge it to Canadian clients. Set aside a portion of every payment for income tax and CPP, since nothing is withheld for you, and watch for the instalment rules once your tax owing grows.
Tracking expenses to lower your tax
Your rate has to cover real business costs, and tracking them also reduces your taxable income. Keep records of software, equipment, a home-office share, professional fees and travel, with receipts. If you are registered for GST/HST, you can also claim input tax credits on the tax you paid on those purchases.
Handling multiple clients and currencies
Freelancers often juggle clients across provinces and borders. Charge each Canadian client their provincial rate, and remember that many exports are zero-rated for foreign clients. If you bill in US dollars or euros, be clear about the currency and how conversion is handled, and factor exchange and transfer fees into your rate.
A simple monthly routine
- Invoice the day each project or milestone wraps.
- Log expenses and file receipts as you go.
- Move tax owed into a separate account.
- Send reminders on anything unpaid past terms.
A light routine like this keeps you paid, keeps the CRA happy, and keeps tax season from being a crisis.
Protecting yourself with a simple agreement
A short written agreement before the work starts is the freelancer's best protection. It does not need to be a legal epic: the scope, the price, the payment terms, and a deposit clause cover most situations. When the terms are agreed up front and repeated on the invoice, late payments and scope disputes drop sharply, and you have something to point to if a client pushes back.
Spell out what happens if the project changes, how revisions are handled, and when payment is due. Clients respect freelancers who are clear about this; it signals you run a real business, not a hobby.
Freelancer invoicing checklist
- Agree scope, price and terms in writing first.
- Take a deposit on anything substantial.
- Charge the client's provincial tax once registered.
- Invoice the day the work is delivered.
- Set money aside for income tax and CPP.
Frequently asked questions
How do I invoice as a freelancer in Canada?
Create an invoice with your details, the client's details, an invoice number, a clear description of the work, your rate, the tax if you are registered, and the total in Canadian dollars. Send it the day the work is done with clear payment terms and an easy way to pay.
How much should I charge as a freelancer?
Work backward from your target income, expenses and the taxes you will owe, divided by the billable hours you can realistically work. That gives a floor for your hourly rate; the freelance rate calculator does the math. Add sales tax on top when you invoice.
Do freelancers have to charge GST/HST in Canada?
Only once your revenue passes the small-supplier threshold, after which registration and charging GST/HST are mandatory. Below it you can register voluntarily to claim input tax credits. Either way, charge the client's provincial rate once registered.