Canadian Income Tax Calculator
Calculate your 2025 federal and provincial income taxes with our easy-to-use tax estimator. Get detailed tax breakdowns, effective rates, and after-tax income for all Canadian provinces.
Income Tax Calculator
Calculate your federal and provincial income tax based on your employment income and deductions. See your effective and marginal tax rates.
Under review for the current tax year. This estimator uses figures that have not yet been re-verified for 2026 and simplifies some credits. Treat results as rough estimates only; use the CRA's own calculators or a tax professional for anything you rely on.
Official sources
Limitations
- Treats the basic personal amount as a deduction rather than a non-refundable credit, which overstates the saving for higher incomes.
- Ignores the Ontario surtax and health premium, the Quebec abatement, CPP/EI credits and all other credits.
Results are estimates for general information and are not legal, tax, payroll or financial advice. Employment contracts, collective agreements and individual circumstances can change what you are owed.
Frequently Asked Questions
What is an effective tax rate?
The effective tax rate is the total amount of tax you pay divided by your total income, expressed as a percentage. For example, if you earn $75,000 and pay $15,000 in taxes, your effective tax rate is 20%. It is lower than your marginal rate because Canada uses a progressive tax system.
What is a marginal tax rate?
The marginal tax rate is the percentage of tax you pay on your next dollar of income. It represents the combined federal and provincial tax rate applicable to your current income level. This rate is important for understanding how much of additional income will be taxed.
Can I deduct RRSP contributions from my income?
Yes, registered retirement savings plan (RRSP) contributions are tax-deductible. The amount you contribute reduces your taxable income. For 2025, you can contribute up to 18% of your previous year's earned income or the RRSP limit, whichever is less. RRSP contributions can significantly reduce your tax liability.
What other deductions can I claim?
Common deductions include tuition fees, medical expenses, donations to registered charities, and moving expenses. Some deductions are available to everyone, while others depend on your specific circumstances. This calculator includes a field for other deductions to give you an estimate. Consult the Canada Revenue Agency (CRA) or a tax professional for a complete list of deductions you may be eligible for.
Why are provincial taxes different across Canada?
Each province sets its own income tax brackets and rates to fund provincial services like healthcare, education, and transportation. This results in significant differences in total tax burden across provinces. For example, someone earning $100,000 in Alberta typically pays less total tax than someone earning the same amount in Quebec, due to different provincial tax rates.
About This Calculator
The Canadian Income Tax Calculator uses the 2025 federal and provincial tax brackets and rates. The calculator assumes you are a Canadian resident for tax purposes and applies the basic personal amount to reduce your taxable income.
This calculator provides estimates only. For accurate tax planning and to determine your actual tax liability, consult the Canada Revenue Agency (CRA) or a qualified tax professional. Tax laws change annually, so always verify current rates with official sources.