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Saving for Taxes as a Self-Employed Canadian
Build a tax-saving routine from real revenue and expense records, then respond early to CRA instalment requirements.
Quick answer
Set aside tax money from every payment in a separate account, track income and deductible business expenses continuously, and revisit the reserve as your profit changes. Do not rely on a universal percentage: income tax, CPP/QPP, province, other income, deductions, and GST/HST registration all change the amount. CRA may require quarterly income-tax instalments when your net tax owing exceeds its threshold.
Sources: Canada Revenue Agency, Canada Revenue Agency
Save from cash received, but calculate from real records
Treat a tax reserve as a transfer you make when money arrives, not an amount you hope is left at year-end. Keep it in a separate account so it is not confused with money available for operations or personal spending.
CRA requires records that support income and expense claims and generally requires them to be kept for at least six years from the end of the tax year they relate to. Track gross income, invoices, receipts, deposits, and business-only expenses as you go.
Sources: CRA guide T4002: business records
Do not use a universal percentage
A fixed online rule of thumb can be materially wrong. The amount you need for income tax and CPP/QPP depends on profit, province or territory, deductions, other income, and your personal tax situation. GST/HST collected, once registered, is also money you collect for remittance rather than income to spend.
Use a conservative provisional reserve, then update it after you have a monthly profit-and-loss view or advice based on your real tax return. The goal is a reliable system, not a confident-looking percentage.
Sources: CRA guide T4002: business records, When to register for and start charging the GST/HST
Watch for CRA instalment notices and filing dates
CRA says individuals may have to pay instalments if net tax owing is more than $3,000 for 2026 and in either 2025 or 2024, with a lower $1,800 threshold for Quebec. For most self-employed individuals, the listed instalment dates are March 15, June 15, September 15, and December 15.
For the 2025 return, CRA lists a June 15, 2026 filing deadline for most self-employed people, but an April 30, 2026 payment deadline if a balance is owing. Filing later does not defer payment. Check CRA’s current deadlines page each year.
Sources: Required tax instalments for individuals, Filing due dates for the 2025 tax return
Sources checked 15 July 2026
Primary documentation used for this guide. Product terms, prices, and government rules can change, so follow the linked source for the current version.
- CRA guide T4002: business records · Canada Revenue Agency
- Required tax instalments for individuals · Canada Revenue Agency
- Filing due dates for the 2025 tax return · Canada Revenue Agency
- When to register for and start charging the GST/HST · Canada Revenue Agency