This calculator is based on a single taxpayer. It does not take into account any personal amounts, such as the spousal amount, disability amount, or age amount. Such personal amounts will have no effect on the taxpayer's marginal tax rate, except that the tax-free zone is increased if the taxpayer is eligible for more credits.
Clawback zones for these credits and for CTB, EI or OAS are not included in the results. For more precise results in situations where these clawbacks are relevant, you may wish to use the Income Tax Estimator.
Marginal Tax Rate - a taxpayer's marginal tax rate is the amount of income tax paid on the next dollar earned, or conversely, the amount of income tax saved by claiming a deduction of $1.
Tax Year
This calculator defaults to the current calendar year or, if tax rates are available, to the following calendar year. Remember that rates are subject to change until the end of the year.
Select the taxpayer's province of residence as of the end of the taxation year. This is used to determine provincial tax rates. Note that because Quebec determines taxable income differently from the other provinces, this calculator any variances in the taxable income for Quebec purposes are ignored.
This line shows the taxpayer's average tax rate for the taxable income entered. If the taxpayer is eligible for additional personal amounts beyond the Basic Personal Amount, their average tax rate may be slightly overstated.
This line shows the marginal tax rate on income from a Canadian Controlled Small Business Corporation (generally dividends from a private corporation) at the federal and provincial/territorial level as well as the combined marginal tax rate.
This line shows the marginal tax rate on income from a Canadian public Corporation (that is, one that is listed on a stock exchange) at the federal and provincial/territorial level as well as the combined marginal tax rate.
This line shows the marginal tax rate on income from capital gains (the full amount of the gain, not the taxable portion) at the federal and provincial/territorial level as well as the combined marginal tax rate.
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Brackets and Rates - When planning you may wish to determine what the limits of the taxpayers current bracket is so that you can increase income without increasing the taxpayer's marginal tax rate, or decrease income to a lower bracket. Along the bottom of the calculator you'll see a visual representation of the federal and provincial brackets and rates.
The green vertical line indicates your client's taxable income. Place your cursor over any of the brackets (federal or provincial) and you'll see the limits of the bracket. For provinces where surtaxes are applied based on taxes rather than on taxable income (ON and PEI), the tax rates for the highest tax bracket (on the graphic) will not be accurate once the surtaxes kick in. The rates shown in the table are none-the-less accurate.
