Income Tax Estimator
Free for Personal Use (Up to 10 Scenarios)

© 2019 Knowledge Bureau



Calculator

Identification

Tax Year  

Province

 

Children

 Under 6 

Age

Healthy/Infirm/Disabled

Income Deductions Federal Tax and Credits Provincial Tax and Credits  

Total income

Employment Income
Old Age Security pension
CPP retirement or disability pension
Eligible pension income
UCCB
Employment insurance benefits
Eligible dividends (actual amount received from a Canadian Public corporation)
Other than eligible dividends (actual amount received from a CCPC)
Dividend gross up
Other Ordinary Income: Interest, Non-eligible Pension, etc.
Capital gains (actual gain)
Non-taxable portion
Self-employment income (bus., prof., farm., fish.)

Total income

Summary

Taxable Income

Federal Tax

Provincial Tax

Total Payable

Tax deducted, Instalments, or Provincial or other refundable credits

Refund

Balance Owing

Combined


Estimated GST Credit

Canada Child Benefit


Help

Income Tax Estimator - Help



 

Identification


 Use this section to provide information about the taxpayer (and spouse)
 
Tax Year – This defaults to the current tax year, but you may choose the prior year as well. Current tax year results are subject to change by both federal and provincial governments, sometimes retroactively.

  Province – Select the taxpayer's province of residence as of the end of the taxation year. This is used to determine provincial tax and credits. Note that because Quebec determines taxable income differently from the other provinces, this calculator cannot calculate provincial taxes for residents of Quebec.

  Children – Select the number of children under 18. This is used to determine the credit for dependent children (until 2015) as well as the estimated GST Credit and Canada Child Benefit / Child Tax Benefit (before 2015).

  Under 6 – Select the number of children under age 6 (2015 and subsequent years). This is used to determine the estimated Canada Child Benefit.

  Single – If the taxpayer is single, leave this box checked. If single is not checked, the second column is assumed to represent a spouse, even if no income or deductions are entered in that column.

  Age Ranges – Select the appropriate ranges for the taxpayer (and spouse if appropriate). These age ranges are used to determine if CPP should be paid on employment or self-employment income as well as whether the taxpayers are eligible for the age amount.

  Healthy/Infirm/Disabled – Select the appropriate health status. If you choose "Disabled", the disability amount will be claimed. If you choose "Infirm", the Family Caregiver amount will be claimed for the dependant for years after 2011.

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Income


  Use this section to report all taxable income received by the taxpayer (and spouse). If you don't see a specific line for the income, use the "Other Ordinary Income" line.
  Employment Income – Enter gross T4-type income. This income is subject to CPP contributions and EI premiums (calculated automatically) and is eligible for the Canada Employment Amount (calculated automatically).

  Old Age Security pension – This amount will default for taxpayers who are over 65. The default is an estimate of the full-year pension (amounts are adjusted quarterly). If the default amount is not accurate (generally because the taxpayer turned 65 in the year), type in your estimated amount.

  CPP retirement or disability income – Enter the CPP pension received by each spouse.

  Eligible Pension Income – Enter Registered Pension Plan income for taxpayers of any age. For taxpayers over 65, a life annuity from an RRSP or RIF is also eligible. Amounts on this line are assumed to be eligible for the pension income amount (calculated automatically). Taxpayers who are not single and are reporting eligible pension income may split that pension income with their spouse. If this is the case, you'll see a check box to split pension income between the two spouses at the bottom of the screen (below Balance Owing).

  UCCB – Enter the UCCB received in the column for the lower-income spouse.

  Employment Insurance Benefits – Enter EI benefits subject to clawback here. If the taxpayer's income is high enough an EI repayment will be calculated. For first-time recipients of EI benefits, use the "Other Income" line as they will not be subject to clawback.

  Eligible Dividends – Enter dividends received from publicly-traded Canadian Corporations. These are subject to gross-up (% varies by year) and are eligible for the dividend tax credit (calculated automatically).

  Other than Eligible Dividends – Enter dividends received from Canadian Controlled Private Corporations. These dividends are subject to a 25% gross-up (calculated on the following line) and are also eligible for a dividend tax credit (calculated automatically).

  Ordinary Income – Enter all sources of income that is taxable, except: Employment Income, Old Age Security, Eligible Pension Income, Employment Insurance benefits (except for first-time receivers), Canadian-source Dividends, Capital Gains or Self Employment Income.

Types of income to place on this line:
  • First-time EI benefits
  • Interest and other investment income
  • Net partnership income
  • RDSP income
  • Rental income
  • Support payments received
  • RRSP withdrawals
  • RRIF income for taxpayers under 65
Do not include the following types of income that are not taxable:
  • Lottery/gambling winnings
  • Social Assistance
  • Workers' Compensation
  • Gifts
  Self-employment Income – Enter income from a proprietorship, farming income, fishing income or professional income (unincorporated) on this line. This income is subject to CPP contributions for taxpayers who are under 70. If the taxpayer is receiving CPP retirement benefits and is over 65, CPP contributions are not mandatory so override if appropriate.

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Deductions


 Use this section to claim any deductions that taxpayer (and spouse) are eligible to claim.

  RRSP Contributions – Enter the taxpayer's RRSP contribution. RRSP contributions may be made up to 60 days after the end of the taxation year. Do not enter amounts in excess of the taxpayer's contribution room.

  Union or like dues – Enter the union dues paid as shown on the T4 slip or on receipts.

  Moving expenses – Enter the taxpayer's moving expenses if they moved at least 40km closer to a new work location.

  Spousal support payments – Enter the taxpayer's deductible spousal support payments made in the year.

  Carrying charges – Enter the taxpayer's cost of borrowing money to invest, safety deposit box fees, investment counsel fees, etc.

  Employment expenses – Enter the taxpayer's deductible employment expenses that are not reimbursed.

  Canada Pension Plan contributions of self-employment income – This amount is calculated automatically for taxpayers under 70 who have self-employment income.

  Other deductions – Enter any other deductions the taxpayer is eligible to claim

For example:
  • RPP contributions (shown on T4 slip)
  • UCCB repayments previously reported in income
  • Child Care Expenses (generally must be claimed by lower-income spouse)
  • Disability Supports
  • Business Investment Losses
  • Exploration and Development expenses
  • Clergy residence deduction
  Social Benefit Repayment – If the taxpayer is required to repay EI or OAS, the repayment amount will be calculated automatically.

  Securities option deduction – Enter the taxpayer's securities option deduction as shown on the T4 slip.

  Other payments deduction – Enter the amount of non-taxable payments included in total income.

  Losses of years – Enter the taxpayer's limited partnership losses of other years (if reporting limited partnership income), capital losses of other years (if reporting capital gains) and non-capital losses of other years.

  Northern residents deduction – Enter the northern residents deduction if the taxpayer lived in a prescribed northern or intermediate zone.

  Other deductions from Net Income – Claim here any of the following deductions the taxpayer is eligible for:
  • Canadian Forces personnel and police deduction (T4)
  • Employee home relocation loan deduction (T4)
  • Capital gains deduction


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Federal Tax and Credits


 Use this section to claim federal non-refundable credits available to the taxpayer.
 

Personal Amounts

  Basic Personal Amount – Calculated for all taxpayers at both the federal and provincial levels.

  Age Amount – Calculated automatically for taxpayer age 65 or older (federal and provincial).

  Spouse or Eligible Dependant – The credit is calculated automatically if the taxpayer is marked as single and the income in the other column is less than the threshold amount or if the taxpayer is marked a single and the number of children is more than zero. The credit is calculated at both the federal and provincial levels. If the spouse is marked as "infirm" or "disabled" the family caregiver amount will be claimed for years after 2011.

  Dependent children under 18 – The credit is calculated automatically for each child selected above. The family caregiver amount will be claimed for the number of dependants marked as infirm years after 2011.

  CPP Contributions – The credit for CPP contribution is calculated automatically for taxpayers under age 70 with employment or self-employment income. Should the taxpayer not be eligible you can override the calculated amount. The provincial amount is always the same as the federal amount.

  EI Premiums – For taxpayers under age 65 reporting employment income, the credit for Employment Insurance premiums is calculated automatically. If the taxpayer is not required to pay EI premiums, override this amount to zero. The provincial amount is always the same as the federal amount.

  Canada employment amount – The credit is calculated automatically if the taxpayer has employment income.

  Pension Income Amount – If the taxpayer is reporting eligible pension income, this amount is calculated automatically at both the federal and provincial levels, based on the amount of eligible pension income entered.

  Disability amount – The credit is calculated automatically if the taxpayer is marked as disabled.

  Transfers from spouse – The credit is calculated automatically if the taxpayer is not marked as single and the spouse has lower income and has more credits than they require. Only the age amount, amount for children, pension income amount, and tuition, education and textbook amounts may be transferred.

  Tuition and Education/Textbook amount – enter any amount the taxpayer is eligible to claim for the Tuition, Education and Textbook amount.

  Other Personal Amounts – If the taxpayer is eligible for any of the following personal amounts, add them
  • Amount for infirm dependants
  • Public Transit Amount
  • Children's Fitness amount
  • Children's Art amount
  • Home Buyers' amount
  • Adoption expenses
  • Caregiver amount
  • Disability amount transferred from dependant
  • Tuition, Textbook and Education amount
  • Tuition, Textbook and Education amount transferred


  Donations and Gifts – Enter the amount of charitable donations. The donation credit will be calculated on the following line (and at the provincial level). For years 2013 to 2017 the enhanced credit will be claimed if you tick the First Time Buyer box.

  Dividend Tax Credit – This amount will be calculated (at both the federal and provincial levels) based on the entry for CCPC and public corporation dividends.

  Labour Sponsored Funds Tax Credit – Enter the credit if the taxpayer invested in a LSIF.

  CPP payable on self-employment – This is calculated automatically for taxpayers who are under age 70 and self-employed. Override if the taxpayer is not required to contribute to CPP.

  Social Benefit Repayment – If the taxpayer is required to repay EI or OAS because of their income levels, this amount will be calculated automatically.

  Family Tax Cut – For tax years 2014 and 2015, if the taxpayer has a spouse and children, the amount of the Family Tax Cut will be calculated automatically.

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Provincial Tax and Credits


 Use this section to claim provincial non-refundable credits available to the taxpayer. Most credits are calculated automatically on the same basis as the federal credits.
  Tuition and Education/Textbook amount – If the provincial amount is different from the federal amount, override as required.

  Other personal amounts – Enter any other provincial non-refundable amounts the taxpayer is eligible to claim.

  Provincial Surtax (and OHIP/AHCCL) – If the taxpayer's province of residence adds a surtax to the provincial tax, it will be calculated and added here. For Ontario, the OHIP premium is also added. For Alberta the Alberta Health Care Contribution Levy will be added for 2015 and subsequent years.

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Summary


 This section summarizes the return: Taxable Income, Federal Tax, Provincial Tax and Total Payable.

  Tax Deducted, Instalments or Provincial or other credits – If the taxpayer has credits to reduce taxes payable, enter them here. Examples include:
  • Income tax deducted at source
  • Instalments paid
  • Provincial refundable tax credits
  • Refundable Medical Expense Supplement
  • Working Income Tax Benefit
  • GST Rebates


 

GST Credit and Canada Child Benefit/Child Tax Benefit


 This section estimates the GST and CCB/CTB that the family is entitled to based on the number of children and family net income.
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Tips

 
  Calculator tabs – Click on the tab to display the Income, Deductions, Federal Tax and Credits or Provincial Tax and Credits pages.

  Types of Fields – There are three types of fields in this calculator:
  • Input Fields: - enter your income and deductions in these fields.
  • Overridable Fields: - these fields are calculated but you can change the value if appropriate. To revert back to the calculated amount, erase the field entirely.
  • Output Fields: - the amounts in these fields are calculated and cannot be overridden.
  Printing – Use the Print Summary button () to generate a summary of the input and output fields (blank lines are not included). It may be necessary to adjust your browser's print setting to optimize the output. Before printing, you may identify the scenario and the taxpayer's names if you wish.

  Two Scenarios for one Taxpayer – If you would like to compare two scenarios for the same taxpayer (ignoring personal amounts and assuming income is more than the basic personal amount), first make sure that the children is set to zero. You can then enter income/deductions/credits for the first scenario in the first column and then enter income/deductions/credits for the second scenario in the second column to compare results. For example if you'd like to compare the tax consequences of interest vs dividend income or the effects of making an RRSP contribution.

  Clearing the Calculator – To clear the data entered and start with a clean slate, press the Clear Data button ().

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