What this calculator does
This tool estimates your Canadian income tax for the 2024 tax year, combining federal tax with the provincial or territorial tax for your selected province. It applies to Canada only and uses 2024 marginal tax brackets. The estimate is based on your taxable income alone and does not include personal amounts, credits (such as the basic personal amount), CPP/EI contributions, or RRSP deductions, so your real tax payable will typically be lower after credits.
How to use it
Enter your annual taxable income in Canadian dollars, choose your province or territory, and the calculator instantly returns your estimated federal tax, provincial tax, total tax, after-tax income, and effective tax rate.
The formula explained
Canada uses a progressive (marginal) tax system. Income is split into bands, and each band is taxed at its own rate. For every bracket, the calculator takes the income that falls within that bracket — \(\min(\text{income}, \text{upper}) - \text{lower}\) — and multiplies it by the bracket rate. The federal total and provincial total are then added together.
$$\begin{gathered} \text{Total Tax} = \text{Federal Tax} + \text{Provincial Tax} \\[1.5em] \text{where}\quad \left\{ \begin{aligned} \text{Tax} &= \sum_{i} \big(\min(I, u_i) - \ell_i\big)\cdot r_i \\ I &= \text{Income} \\ r_i &= \text{bracket rate (Federal and }\text{Province}\text{)} \end{aligned} \right. \end{gathered}$$
Worked example
Suppose you earn $60,000 in Ontario. Federally: the first $55,867 is taxed at 15% = $8,380.05, and the remaining $4,133 at 20.5% = $847.27, for $9,227.32. Provincially (Ontario): the first $51,446 at 5.05% = $2,598.02, and the remaining $8,554 at 9.15% = $782.69, for $3,380.71. Combined tax ≈ $12,608.03, an effective rate of about 21%.
$$\$55{,}867 \times 15\% = \$8{,}380.05$$$$\$4{,}133 \times 20.5\% = \$847.27$$$$\$8{,}380.05 + \$847.27 = \$9{,}227.32$$$$\$51{,}446 \times 5.05\% = \$2{,}598.02$$$$\$8{,}554 \times 9.15\% = \$782.69$$$$\$2{,}598.02 + \$782.69 = \$3{,}380.71$$$$\$9{,}227.32 + \$3{,}380.71 \approx \$12{,}608.03$$
FAQ
Does this include the basic personal amount? No. To keep the model transparent it taxes gross taxable income; real tax payable is reduced by non-refundable credits like the basic personal amount.
Which year's brackets are used? The 2024 federal and provincial brackets.
Why isn't my province listed? The tool covers the most populous provinces; territories and a few smaller provinces may be added over time.
