Canadian income tax calculator

For most planning scenarios — within $50 of CRA. Every federal and provincial bracket, basic personal amount, age amount and pension amount is verified at the government source (canada.ca / CRA / each provincial finance ministry); CPP, EI and QPIP figures come from the official 2026 schedules. The calculator handles the federal BPA phase-out for high earners, the age-amount clawback, Ontario's surtax and Health Premium, Quebec's 16.5% federal abatement, and Quebec's lower QPP rate plus QPIP. Small simplifications exist on the enhanced-CPP-deduction nuance (worth less than $100/yr for most), and provincial credits like the BC Tax Reduction or Saskatchewan Low-Income Credit are not modelled — final numbers from a real tax return may be slightly lower than what you see here.

Alberta added a NEW 8% tax bracket on the first $61,200 of income — effective 2025, indexed to $61,200 for 2026 — saving residents up to $750 per person per year. It's Alberta's biggest tax cut in years and the calculator captures it exactly. The flip side: BC raised its lowest bracket from 5.06% to 5.60% in Budget 2026, a real tax hike on every BC taxpayer, plus paused indexation 2027–2030 so the bracket creep starts working against BC residents next year.

Quebec residents file a separate provincial return and apply a 16.5% federal abatement on basic federal tax (which the calculator handles), pay QPP instead of CPP at a lower 5.4% base rate, contribute to QPIP (Quebec's parental insurance plan) at 0.430%, and pay reduced EI. Not modelled here: the separate Health Services Fund contribution (kicks in above $18,500) and the RAMQ prescription drug premium (for those without private drug coverage). Both add to the total tax burden in Quebec for higher incomes.

Two reasons. Nunavut has the highest Basic Personal Amount in Canada at $19,274 (versus the federal $16,452 and Ontario's $12,989), so the first $19,274 of income is fully sheltered. And its bracket structure starts at just 4% — the lowest provincial rate anywhere — climbing to a top rate of only 11.5%. The territories' high cost of living shifts the policy lever: most relief comes through low income tax rather than refundable credits or transfers.

Enter your actual RRSP contribution for the year — it reduces taxable income directly, so the calculator shows your refund (or reduction in tax owed) instantly. The display below the box shows your marginal rate: that's the rate of tax savings on every dollar of RRSP contribution. A $5,000 RRSP contribution at a 30% marginal rate returns about $1,500. Pair this with our RRSP vs TFSA calculator for the deeper decision about which account to favour.