Canadian Federal Income Tax Calculator

Estimate federal tax, marginal rate, credits, and optional CPP/QPP, EI, or QPIP contributions.

Tax year

Province or territory

Used for Quebec abatement and payroll contributions; residence and employment province are assumed to match.

Annual employment income

$ CAD

Gross employment income in CAD; other income types are not included.

RRSP deduction claimed

$ CAD

Must not exceed income or your available RRSP deduction room.

Estimate employee contributionsCPP and EI outside Quebec; QPP, EI, and QPIP in Quebec.

How to use the calculator

Select tax year and province, enter annual employment income and the RRSP deduction claimed, then choose whether to estimate CPP/QPP, EI, and QPIP where applicable.

Taxable income

RRSP and enhanced CPP or QPP portions reduce income in the model. The result becomes the base for progressive federal tax brackets.

Marginal and average rates

The marginal rate applies to the next dollar in the current federal bracket. The effective rate divides estimated federal tax by total employment income.

Basic Personal Amount and credits

The Basic Personal Amount is not a direct income deduction. With modelled contributions and the Canada Employment Amount, it generates a non-refundable federal credit.

Quebec example

For Quebec, the calculator uses QPP, the Quebec EI rate, and QPIP, and also subtracts the Quebec federal abatement from federal tax.

Not included

Provincial tax, many personal credits and deductions, self-employment, other income types, and a complete return are absent. Remaining income is not a payroll net-pay figure.

Frequently Asked Questions

How do Canadian federal tax brackets work?

Only the portion of taxable income inside each bracket is charged that bracket's federal rate.

What is the marginal tax rate?

It is the federal rate on the next dollar of taxable income, not the rate applied to all income.

How does the Basic Personal Amount work?

It generates a non-refundable credit at the lowest federal rate. The amount can decline at higher incomes.

Are provincial taxes included?

No. Province selection controls Quebec-specific federal rules and payroll contributions only; provincial income tax is absent.

Which credits and deductions are missing?

Many family, age, medical, donation, and income-specific items are absent, as are non-employment income types.

Which tax year applies?

You can select 2025 or 2026. Values were reviewed against CRA information on July 28, 2026.