What is the Canada Income Tax Calculator?
This calculator estimates your 2024 Canadian income tax, CPP contribution, EI premium and net take-home pay based on your annual taxable income and province or territory of residence. It applies to Canada only and uses 2024 federal and provincial tax brackets, the federal and provincial basic personal amounts, the 2024 CPP rate (5.95% on pensionable earnings between $3,500 and $68,500) and the 2024 EI rate (1.66% up to $63,200).
How to use it
Enter your annual taxable income in Canadian dollars and select your province. The tool computes federal and provincial tax separately using progressive brackets, subtracts the basic personal amount credits, then deducts CPP and EI to show your estimated net income.
The formula explained
Tax in each bracket equals the income falling inside that band multiplied by the band's rate. The federal and provincial basic personal amounts reduce tax via a non-refundable credit at the lowest rate. Net income = income \(-\) total tax \(-\) CPP \(-\) EI.
$$\begin{gathered} \text{Total Tax} = \text{Federal} + \text{Provincial} \\[1.5em] \text{where}\quad \left\{ \begin{aligned} \text{Federal} &= \sum_i \text{rate}^{fed}_i \cdot B_i(I) - 0.15 \cdot \min(I,\,15705) \\ \text{Provincial} &= \sum_i \text{rate}^{prov}_i \cdot B_i(I) - \text{rate}^{prov}_1 \cdot \min(I,\,\text{BPA}) \\ I &= \text{Income (CAD)} \\ \text{BPA} &= \text{Basic Personal Amount for } \text{Province} \end{aligned} \right. \end{gathered}$$
Worked example
For $60,000 in Ontario (2024): federal tax
$$\text{Federal} = 15\% \times 55{,}867 + 20.5\% \times (60{,}000 - 55{,}867) = 8{,}380.05 + 847.27 = 9{,}227.32$$minus 15% \(\times\) 15,705 BPA credit (2,355.75) = $6,871.57. Provincial Ontario tax and CPP/EI are added to get total deductions, leaving the net take-home pay.
FAQ
Is this exact? No — it is an estimate that excludes additional credits, RRSP deductions, surtaxes and the Quebec abatement.
What tax year? 2024 federal and provincial brackets.
Does it include CPP2? No, only the base CPP contribution is modeled.
