Canada Income Tax Calculator
Easily estimate take home pay after income tax so you can have an idea of what to possibly expect when planning your budget
Results
Income Before Tax
Take Home Pay
Total Tax
Average Tax Rate
$ = Canadian Dollar
Income Before Tax
Federal Income Tax
Federal Non-Refundable Tax Credits
Quebec Federal Tax Abatement
Provincial Income Tax
Provincial Non-Refundable Tax Credits
Provincial Surtax
Provincial Non-Refundable "Tax Reduction"
Canada Pension Plan (CPP)
Employment Insurance (EI)
Quebec Pension Plan (QPP)
Quebec Parental Insurance Plan (QPIP)
Quebec Health Services Fund
Ontario Health Premium
Total Tax
Take Home Pay
Total Deductions
Average Tax Rate
Table of Contents
Summary
Enter your employment income into the income tax calculator above to estimate how taxes in Canada may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly expect when planning your budget.
To learn more about Canada, its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to the detail section below!
Quick Facts about Canada
- Main Language(s):English, French
- Currency:Canadian Dollar ($)
- Capital:Ottawa
- Total Population:39,858,480
- 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
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 take home pay.
How many income tax brackets are there in Canada?
The federal income tax system in Canada has five 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 2023 tax year
| Taxable Income (CAD) | Tax Rate |
|---|---|
| First 53,359 | 15% |
| From 53,359 to 106,717 | 20.5% |
| From 106,717 to 165,430 | 26% |
| From 165,430 to 235,675 | 29% |
| From 235,675 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.
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.
Most tax credit reliefs are stated in "amount" figures. These 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.
On the federal level, some include the employment amount and the personal amount. For 2023, the former stands at $1,368 while the latter ranges from $13,521 to $15,000 depending on your income.
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 5.95% and 1.63%, respectively for employees. 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.
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.
Sources:
More From Investomatica:
For sales tax, please visit our Canada Sales Tax Rates and Calculator page.
Calculate Your Income Tax in Other Provinces and Territories
Calculate Your Income Tax in Other Parts of North America
Disclaimer
- The content shown on this page is strictly for educational purposes only. It does not represent advice nor is it a substitute for a professional advisor.
- Estimated results are just estimates. They are not a guarantee of future results.
- Tax situations vary widely and calculations can get very complex. This income tax calculator only provides a rough estimate according to the most common scenarios for 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.
- 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.
- Generally, we review changes once a year since tax codes usually change 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 questions about your own personal situation, please consult a licensed tax professional.
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