Estimate the amount of both federal and provincial taxes you will owe based on your Total Taxable Income.
How this calculator works.
Step 1. Calculate your Total Taxable Income.
The Total Taxable Income is calculated by first adding up your total income earned from all the different sources of income. You then take that number and minus any legal tax deductions you may have. (We recommend you seek the advice of a tax professional if you are unsure whether you qualify for a certain deduction).
Step 2. Your Tax Filing year
Each year, the CRA may adjust the rates and thresholds for each induvial tax bracket. Make sure you select the appropriate year.
Step 3. Select your Province / Territory
Each Province sets their own tax rates and brackets. It is based on where you live as of Dec 31st. Even though you may have spent 4 months living in Ontario in 2022, If you move to Alberta on Dec 30th, your provincial tax rate will be Alberta’s rate.
How the Tax bracket system works
The tax bracket system works by applying a different tax percentage rate to your income as it reaches certain amounts.
For your federal taxes, you will be a tax rate of 15% on your first $50,197 of taxable income. The percentage then increases depending on your total taxable income amount.
If your total taxable income comes out to be exactly $100,000, your Federal tax amount is equal to $17,739.16
My Federal tax amount is equal to
15% * $50,197 = $7,529.55
20.5% * 100000-50197 = $10,209.62
Your total Federal tax owed is $7,529.55+$10209.62 = $17,739.16
The tax bracket thresholds extend up to 33% tax rate for income over $221,708.
Your provincial tax rates work in a similar fashion however with different rates and thresholds.
According to the Canada Revenue Agency, federal income tax rates are as follows:
Federal Tax Brackets 2023
- 15 percent on the first $53,359 of taxable income.
- 20.5 percent on the next $53,358 (to $106,717).
- 26 percent on the next $58,713 (on the portion over $106,717 to $165,430).
- 29 percent on the next $70,244 (on the portion over $165,431 to $235,675).
- 33 percent of any taxable income over $235,676.
Federal Tax Brackets 2022
- 15% on the first $50,197 of taxable income,
- 20.5% on the next $50,195 of taxable income (on the portion of taxable income over $50,197 up to $100,392)
- 26% on the next $55,233 of taxable income (on the portion of taxable income over $100,392 up to $155,625)
- 29% on the next $66,083 of taxable income (on the portion of taxable income over 155,625 up to $221,708)
- 33% of taxable income over $221,708