Canadian Income Tax Calculator

How Canadian Income Tax Works

Canada uses a dual-level income tax system where both the federal government and your province or territory levy income tax. Your total tax burden depends on where you live, as provincial rates vary significantly across the country and are indexed periodically.

Federal Tax Brackets (2026)

The federal government taxes income progressively across five brackets. The first $57,375 of taxable income is taxed at 14%, with rates increasing to 33% on income above $253,414. This calculator applies a federal Basic Personal Amount credit using the indexed 2026 planning value.

Provincial Tax Differences

Each province and territory sets its own brackets, rates, and credits. This tool uses current planning values to estimate provincial tax and compare net pay across regions, but exact withholding can differ due to surtaxes, credits, local premiums, and province-specific rules.

RRSP: A Powerful Tax Reduction Tool

Registered Retirement Savings Plan (RRSP) contributions are deductible from your taxable income, reducing both federal and provincial tax. Your annual RRSP contribution room is generally 18% of your previous year's earned income (subject to CRA annual limits). Unused room carries forward indefinitely. Contributing to your RRSP is especially advantageous if you expect to be in a lower tax bracket when you withdraw the funds in retirement.

CPP, QPP, and EI

The Canada Pension Plan (CPP) — or Quebec Pension Plan (QPP) in Quebec — is a mandatory contribution on employment and self-employment earnings. For 2026 planning, this calculator includes both base CPP/QPP and the additional contribution band above the YMPE. Employment Insurance (EI) premiums are calculated with the 2026 employee rates and insurable earnings cap. Self-employed workers are generally exempt from EI unless they opt in.

Tax Filing in Canada

Canadian tax returns are due April 30 each year (June 15 for self-employed individuals, though any balance owing is still due April 30). The Canada Revenue Agency (CRA) administers federal tax and most provincial taxes, except in Quebec, where Revenu Québec handles provincial tax separately. Most Canadians file electronically using NETFILE-certified software, and many receive refunds within two weeks of filing.