About the Canada Income Tax Calculator
This Canadian income tax calculator estimates your 2025 federal and provincial income tax — the return you file in spring 2026 — for Ontario, British Columbia, Alberta and Quebec. Enter your employment income, any other income and your RRSP deduction, and it works out tax at each level, CPP or QPP contributions, EI premiums, your combined marginal rate and what you take home.
It uses the 2025 federal brackets with the blended 14.5% lowest rate (the rate fell from 15% to 14% on 1 July 2025), the enhanced basic personal amount of up to $16,129, the Canada employment amount and credits for CPP and EI. Provincial tax uses each province’s 2025 brackets and basic personal amount; Ontario includes the surtax and the Ontario Health Premium, and Quebec residents get the 16.5% federal abatement.
It is ideal for comparing job offers across provinces, checking the value of an RRSP contribution or estimating a refund. It covers the main credits every employee gets; others such as tuition, medical, donation, dependant and age credits, the Ontario tax reduction for low incomes, the BC tax reduction for low incomes and Quebec’s deduction for workers are not included, so your actual tax may be slightly lower — mainly for incomes under about $40,000. It covers the 2025 tax year only; for 2026 the lowest federal rate is a full 14% on the first $58,523 and all brackets and amounts are indexed, so 2026 tax will differ slightly.
With the default inputs, the total income tax is $14,492.48. Change any value above to recalculate instantly.
How to use the canada income tax calculator
- 1Choose the province you lived in on December 31, 2025.
- 2Enter your employment income for the year.
- 3Add other taxable income such as interest or rental profit.
- 4Enter your RRSP or FHSA deduction.
- 5Review federal and provincial tax, payroll deductions and your take-home pay.
Formula and method
Taxable income is employment and other income minus RRSP deductions and the enhanced CPP/QPP contributions (the extra 1% and CPP2), which are deductible. Federal tax applies the 2025 brackets (14.5%, 20.5%, 26%, 29%, 33%) and subtracts non-refundable credits worth 14.5% of the basic personal amount, base CPP/QPP contributions, EI and QPIP premiums and the Canada employment amount ($1,471). The federal BPA shrinks from $16,129 to $14,538 as income rises from $177,882 to $253,414.
Provincial tax applies the province’s brackets and subtracts its basic personal amount (plus CPP and EI outside Quebec) at the lowest provincial rate. Ontario adds a surtax of 20% of provincial tax over $5,710 and 36% over $7,307, plus the Ontario Health Premium of up to $900. In Quebec, federal tax is reduced by 16.5%. The marginal rate is measured by adding $100 of other income.
- BPA
- Basic personal amount (federal and provincial)
- CPP/QPP
- Pension contributions: 5.95% (QPP 6.4%) of earnings $3,500–$71,300 plus 4% to $81,200
- EI
- Employment insurance: 1.64% (1.31% in Quebec) of earnings up to $65,700
Worked examples
$80,000 salary in Ontario
Deducting $1,026 of enhanced CPP and CPP2 leaves taxable income of $78,974. Federal tax after credits is about $9,552 and Ontario tax — including the $750 Ontario Health Premium — about $4,940, for $14,492. CPP ($4,382) and EI ($1,077) leave take-home pay of about $60,048.
$120,000 salary in Alberta
Alberta’s new 8% first bracket and $22,323 basic personal amount keep provincial tax to about $8,552. Federal tax is about $17,972, for total income tax of about $26,524 and take-home pay near $87,968.
$65,000 salary in Quebec
Quebec residents pay QPP at 6.4% ($3,936), EI at the lower 1.31% rate plus QPIP ($1,173 combined). The 16.5% abatement brings federal tax to about $5,472, while Quebec tax is about $6,970, for $12,442 in total.
Frequently asked questions
What are the 2025 federal tax brackets in Canada?+
For 2025: 14.5% (blended) up to $57,375, 20.5% to $114,750, 26% to $177,882, 29% to $253,414 and 33% above. The lowest rate is 14% from 2026.
Why is the lowest federal rate 14.5% for 2025?+
The government cut the lowest federal rate from 15% to 14% effective July 1, 2025. Because the change took effect mid-year, the rate for the full 2025 tax year is 14.5%, and non-refundable credits are also calculated at 14.5%.
What is my marginal tax rate?+
Your marginal rate is the combined federal and provincial tax on your next dollar of income. It is the rate that matters for RRSP deductions and raises; the calculator measures it by adding $100 of income.
How much does an RRSP contribution save?+
An RRSP deduction saves tax at your marginal rate. At a 30% combined marginal rate, a $5,000 contribution cuts tax by about $1,500, and the refund can be reinvested.
What is the Ontario Health Premium?+
It is an extra charge on Ontario residents with taxable income above $20,000, rising in steps to a maximum of $900 for incomes above $200,600. It is collected with provincial income tax.
Does this calculator include CPP and EI?+
Yes. For employees it calculates CPP (or QPP in Quebec) including CPP2, EI premiums and, in Quebec, QPIP, and gives credits or deductions for them in the tax calculation.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.