Personal Tax -> Payroll calculators and other tax calculators
Payroll Tax Calculators
You may want to know, prior to the end of the year, approximately what your total income tax, CPP and EI costs will be for the year. Perhaps you would like to check the deductions on your payroll cheque to ensure that they are accurate.
To calculate your estimated annual take home pay, see our online Canadian Tax Calculator, which is available for all provinces and territories except Quebec, which has its own calculator. Input your income from different sources to calculate your federal & provincial/territorial taxes and CPP and EI premiums. Don't forget about any taxable benefits, such as automobile taxable benefits, life insurance coverage, dental plans or extended health benefits provided by your employer. Input an RRSP deduction amount to see how much tax can be saved. These calculators calculate annual deductions. When the annual amounts are divided by the number of pay periods in a year, they will not equal a person's deductions from an individual pay period. The main reason for this is that CPP and EI premiums are charged on all earnings until the maximum for the year is reached, after which no premiums are deducted until the start of the next year. Also, income tax rate changes are sometimes announced after payroll deduction tables are prepared for the year. In this case, the tables are revised effective July 1st.
If you want to calculate the deduction amounts for an individual pay period, see the following tax calculators provided by Canada Revenue Agency (CRA):- Payroll Deductions Online Calculator (PDOC) which is free of charge.
- Automobile Benefits Online Calculator - calculates the appropriate automobile taxable benefit amount to be included in an employee's income when the employee utilizes a vehicle leased or owned by the employer.
To use the CRA payroll deductions online calculator, you need to know the TD1 Claim Code for the person whose take home pay is being calculated. This is the code which changes depending on how many deductions a person has. See our article on TD1 forms, which includes links to obtain the forms from CRA, and links to obtain the equivalent forms used in Quebec.
The CRA online calculators can be used by an employer to calculate payroll deductions for employees. They can also be used by an individual to check their own take home pay, or to estimate what their take home pay would be in different circumstances. If you are an employee using the calculators, make sure you include taxable benefits in your income for the calculations. If you find that your deductions do not seem to be correct, you should ensure that your employer has current TD1 forms for you, both federal and provincial.
Because payroll deduction rates can change semi-annually, if you are using the downloaded software you should get on the CRA electronic mailing list service for payroll deductions, so you can be notified when new rates are available.
If you prefer to calculate deductions manually, you can get instructions and the payroll deduction tables from the CRA web page on Calculating deductions.
Quebec Payroll Taxes
Revised: November 21, 2015
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