Salary Before Tax$ 0
Salary After Tax$ 0
Total Tax$ 0
Average Tax Rate0 %
$ = Canadian Dollar
Salary Before Tax$ 0
Federal Income Tax$ 0
Federal Non-Refundable Tax Credits$ 0
Quebec Federal Tax Abatement$ 0
Provincial Income Tax$ 0
Provincial Non-Refundable Tax Credits$ 0
Provincial Surtax$ 0
Provincial Non-Refundable "Tax Reduction"$ 0
Canada Pension Plan (CPP)$ 0
Employment Insurance (EI)$ 0
Quebec Pension Plan (QPP)$ 0
Quebec Parental Insurance Plan (QPIP)$ 0
Quebec Health Services Fund$ 0
Ontario Health Premium$ 0
Total Tax$ 0
Salary After Tax$ 0
Total Deductions$ 0
Average Tax Rate0 %
Table of Contents
Enter your salary into the calculator above to find out how taxes in Canada affect your income. You'll then get your estimated take home pay, a detailed breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to expect when planning your budget.
If you make 0 a year living in Canada, we estimate that you'll be taxed 0. In almost all cases, your employer will automatically withhold this amount from your paychecks and thus your take home pay should be around 0 per year or 0 per month. Lastly, your average tax rate ends up being around 0 %. Note that this estimate is based only on the most common standard deductions and credits, if any. If you are eligible for additional deductions and credits, your taxes may be lower.
- In determining tax credits, any "amount" figures (both federal and provincial) are not to be subtracted directly from income tax but are instead first multiplied against the rate on the lowest tax bracket before doing so. In other words, these are basically acting like deductions in the more traditional sense of the word for tax purposes, but with a slight twist.
Frequently Asked Questions
What is the income tax rate in Canada?
The personal income tax rate in Canada is progressive and assessed both on the federal level and the provincial level. Federal tax rates range from 15% to 33% depending on your income while provincial and territorial income tax rates range from 4% to 25.75%. This income tax calculator can help estimate your average income tax rate and your salary after tax.
How many income tax brackets are there in Canada?
The federal income tax system in Canada has 5 different tax brackets while it varies for provincial and territorial income tax. For more details, check out our detail section.
Canada Federal Income Tax Brackets and Other Information
The personal income tax system in Canada is a progressive tax system. This means that your income is split into multiple brackets where lower brackets are taxed at lower rates and higher brackets are taxed at higher rates. Federal tax rates range from 15% to 33%.
For 2021 tax year
|Taxable Income (CAD)||Tax Rate|
|From 49,020 to 98,040||20.5%|
|From 98,040 to 151,978||26%|
|From 151,978 to 216,511||29%|
|From 216,511 onwards||33%|
As far as terminology goes, deductions are not as standard and widely available in Canada when compared to the United States to the south. Instead, Canada takes a different approach and tends to structure things around tax credits. Some include the employment amount and the personal amount.
It is important to note that most tax credits are non-refundable which means that if the total amount of tax credits ends up being higher than your income tax, you will not be given a refund of the difference. In such scenarios, your income tax would simply be zero.
Additionally, any "amount" figures (both federal and provincial) are not to be subtracted directly from income tax but are instead first multiplied against the rate on the lowest tax bracket before doing so. In other words, these are basically acting like deductions in the more traditional sense of the word for tax purposes, but with a slight twist.
Social Security in Canada
Social security in most of Canada consists of the Canada Pension Plan (CPP) and Employment Insurance (EI), with the exception of Quebec. Contributions to the CPP and EI come in at rates of 5.45% and 1.58%, respectively. Maximum limits regarding the income that is applicable for contributions are present for both.
Additionally, corresponding tax credits that help offset the burden of social security contributions, up to certain limits, also exist. These can be applied on both the federal and provincial level.
Resident status and income tax in Canada
Residents are subject to Canadian income tax on worldwide income while non-residents are subject to Canadian income tax only on Canada-sourced income. Individuals that are resident in Canada for only part of a year are taxed only on worldwide income during the period with which they were resident.
When determining whether or not an individual is considered to be a resident, many factors are examined. Some factors include having a fixed abode in Canada, maintaining an abode in Canada, having a spouse and dependents living in Canada, social and business ties, membership in organizations, driver licenses, vehicle registrations, medical insurance, etc. All these and more are considered when determining residence.
In the unlikely scenario where none of the factors exist, individuals can still be considered residents if they stay 183 days or more in a calendar year.
For the most part, almost all individuals that live and work in Canada will be considered as residents for tax purposes.
Provincial and Territorial Income Tax
To see details about provincial and territorial income tax, scroll down to the additional provinces and territories section and click on a region. Alternatively, fill in your before tax salary into our calculator at the top of page, select a province or territory, and click calculate. Upon doing so, this page will automatically update to show details about your selected region.
For sales tax, please visit our Canada Sales Tax Rates and Calculator page.
Quick Facts about Canada
- Main Language(s):English, French
- Currency:Canadian Dollar ($)
- Total Population:38,048,738
- Most Populous City:Toronto
- Time Zone(s):UTC−3.5 to −8
(Summer: UTC−2.5 to −7)
- International Phone Code:+1
- Driving Side:Right
- Climate:Ranges from temperate to artic
Additional Provinces and Territories
Income Tax Calculator Disclaimer
- Tax situations vary widely and calculations can get very complex. This income tax calculator only provides an estimate according to the most common scenarios for salary (standard employment income) that comes from an employer. If you are self-employed, your taxes might differ.
- There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
- Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary. Additionally, some cities may have city specific income tax.
- This income tax calculator only estimates income tax. It does not consider other taxes like property tax, self-employment tax, capital gains tax, dividend tax, etc.
- Income tax calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
- Investomatica is not a tax advisor. While we try our best to stay up to date with changes in tax codes, we make no guarantee our income tax calculator will always be accurate. Generally, we review changes once a year. If you notice a major miscalculation or error with our income tax calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific tax questions, please consult a licensed tax professional.
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