Canadian Tax and
Financial Information
Payroll Taxes

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Business -> Payroll taxes - deductions and automobile taxable benefits

Calculating Payroll Tax Deductions and Automobile Taxable Benefits

Note:  The changes that were made to the payroll deductions tables as a result of the proposed tax changes in Ontario's budget are no longer in effect.  For Ontario, use the T4127 Payroll Deductions Formulas for January 1, 2018.  If you are using payroll software and haven't yet received an update, you should hopefully receive an update early in July.

Canada Revenue Agency (CRA) has a Payroll Deductions Online Calculator (PDOC) which is free of charge.  This has been updated re Ontario going back to the original 2018 rates.

CRA also has the Automobile Benefits Online Calculator, which 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.

If you prefer to calculate deductions manually, you can get instructions and the payroll deduction tables from the CRA web page on Calculating deductions.

Because payroll deduction rates often change semi-annually, you should get on the CRA electronic mailing list service for payroll deductions, so you can keep up to date when new rates are available.

For CRA information on taxable benefits, see T4130 Employers' Guide - Taxable Benefits and Allowances, as well as the Benefits Chart, which shows the types of benefits for which CPP and EI must be deducted, and which benefits require GST or HST to be included in the taxable benefit amount.  It also shows the appropriate codes to go on a T4 slip.

CRA also has a lot of information for workers and employers at CPP/EI Explained.

See also our Calculators page for links to our Detailed Income Tax Calculators, which are available for all provinces and territories.  Input your annual income from different sources.  Your annual federal & provincial/territorial taxes, CPP and EI premiums will be calculated for you.  Input an RRSP deduction amount to see how much tax can be saved.  The tax calculators are a very useful tax planning tool.  They work for both the current and previous tax years.

See also Which provincial or territorial tax tables should I use for my employees?

Quebec Payroll Taxes

To calculate payroll taxes for Quebec, download the WinRAS program from Revenu Quebec.  See also Source deductions and contributions on Revenu Quebec website.

CRA Resources:

Payroll Deductions Online Calculator, payroll tables, TD1s, and more

Revised: June 27, 2018


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