To calculate your estimated annual take home pay,
see our online
Canadian Tax Calculator, which is available for all provinces and
territories except Québec, which has its own
calculator.
Input your income from different sources to calculate your federal & provincial/territorial
taxes and CPP and
EI premiums. 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):
To use the CRA online calculator or downloaded software, 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. The forms
for determining the appropriate TD1 claim codes (federal and provincial) can
be found on the CRA web site on their TD1
forms page.
The CRA online calculator or the software 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 calculator or software,
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, or if there is a change in the software.
If you prefer to calculate deductions
manually, you can get instructions and the payroll deduction
tables from the CRA web page on Calculating
deductions.
To calculate payroll taxes for Québec,
download the WinRAS
program from Revenu
Québec. See also General
information - Source deductions and contributions on Revenu Québec
website.
Revised: November 18, 2009
