Canadian Tax Calculator

Navigating Canadian Taxes: Federal & Provincial Income Calculator (FY 2025-2026)

Estimate your combined Federal and Provincial Income Tax, plus CPP and EI payroll deductions.

The Canadian tax system is built on two parallel progressive tax systems: one at the **Federal** level and one at the **Provincial** level. This **interactive Canadian Tax Dashboard** provides an estimate of your total tax liability for the 2025 tax year. Calculations use projected 2025 marginal tax rates and Basic Personal Amounts (BPA) for both levels. The default provincial rate used is for **Ontario (ON)**.

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Canada Tax Dashboard (FY 2025-2026 Estimates)

Rates and BPAs are projected for 2025. Provincial rates default to **Ontario (ON)**.

Credit: Muhammad Rizwan Sukhera | CEO - Raza Group.

1. Total Income Tax & Payroll (CPP/EI)

Gross Annual Income (CAD) Enter your total annual income (Salary, Business Income, etc.).

Select Province/Territory Ontario (ON) - Default British Columbia (BC) Alberta (AB) Quebec (QC) Other Province (Federal Only Estimate) Provincial rates currently use **Ontario** as the live calculation model.

Other Deductions (e.g., RRSP/Union Dues) (CAD) Items that reduce your taxable income (e.g., RRSP contributions).

Total Annual Tax Summary

Taxable Income: 0.00

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Federal Income Tax Due: 0.00

Provincial (ON) Income Tax Due: 0.00

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CPP/EI Payroll Deductions: 0.00

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TOTAL INCOME & PAYROLL LIABILITY: 0.00

2. Goods and Services Tax (GST/HST) Estimate (CAD)

Estimated Annual Taxable Spending (CAD) Estimate of your annual spending on goods/services subject to GST/HST.

Combined GST/HST Rate (%) Use your province's combined rate (e.g., 13% for Ontario/HST).

GST/HST Summary

Taxable Spending: 0.00

Effective Rate Used: 13.0%

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ESTIMATED ANNUAL GST/HST PAID: 0.00

3. Other Taxes (Property, Dividend, Capital Gains)

The Canadian tax system includes taxes on investment income and property, which are highly variable and not included in the main calculation:

• **Capital Gains:** Only 50% of capital gains are taxable at your marginal tax rate.
• **Dividend Income:** Taxed differently through a system of "gross-up" and "credit."
• **Property Tax:** Set locally by municipalities based on property assessment.

Key Canadian Tax Concepts

Basic Personal Amount (BPA) Credit

RRSP/TFSA Savings Tools

Marginal vs. Average Rate Crucial Difference

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Important Disclaimer

This calculator is for informational and estimation purposes only and should not be considered professional tax advice. Rates and amounts are based on projected 2025 Federal and Ontario Provincial tax brackets, BPAs, and payroll deduction caps. It does not account for complex non-refundable credits (e.g., medical, tuition), itemized deductions, or specialized income sources (e.g., dividends, pensions). For definitive guidance, you must consult with a qualified accountant or tax professional.

Conclusion: Your Canadian Tax Picture

The total tax burden in Canada is often higher than in the US due to the combined effect of Federal and Provincial income taxes. However, the system is balanced by comprehensive social programs. A key factor to remember is the **Basic Personal Amount (BPA)**, which is essentially an amount of income you can earn tax-free at both the Federal and Provincial levels, structured as a non-refundable tax credit.

How does this estimate compare to what you expected for your province? Would you like me to model the tax on a specific type of investment income, like **Capital Gains** (which are only 50% taxable in Canada)?