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Canada Income Tax Calculator (2025)

Estimate Canadian federal income tax in CAD, with take-home, effective and marginal rate. Federal brackets only — provincial tax, CPP and EI are not included.

Runs in your browser — files never leave your device

Tax
$7,500
Take-home
$42,500
Effective rate
15%
Marginal rate
15%

Based on illustrative Canada brackets for 2025. For estimation only — not tax advice.

How it works

The Canada edition of the income-tax estimator. It applies a set of federal income-tax brackets to the annual taxable income you enter, and returns the estimated federal tax, what is left of the income, and your effective and marginal rates. This build labels the brackets for the 2025 tax year and they are illustrative — federal thresholds are indexed to inflation each year, so confirm the current ones before relying on the figure.

Tax is the sum of each slice of income × its bracket rate. The federal schedule loaded here is 15% up to $55,867, 20.5% to $111,733, 26% to $173,205, 29% to $246,752, and 33% above that. Your marginal rate is the bracket the last dollar falls in; your effective rate is total tax ÷ total income.

Worked example at $120,000 of taxable income. The first $55,867 is taxed at 15% = $8,380.05; the next $55,866 at 20.5% = $11,452.53; the remaining $8,267 at 26% = $2,149.42. Total federal tax $21,982, leaving $98,018, with an effective rate of 18.32% and a marginal rate of 26%.

Read that as roughly half the story. Canadian income tax is federal plus provincial or territorial, and each province sets its own brackets and rates, charged on top of the federal amount — so your combined liability is materially higher than the number above, and it differs depending on where you live. On top of tax, CPP and EI are separate payroll deductions that reduce net pay without being income tax at all. The practical consequence is that the 26% marginal rate shown at $120,000 is the federal slice only: the true rate on your next dollar of earnings is that plus your province’s marginal rate, which is what actually matters when you are weighing overtime, a bonus, or an RRSP contribution.

One more honesty note: the engine applies rates from the first dollar and no credits at all, including the basic personal amount. Because that credit exists in real life, this estimate overstates federal tax — most of all at lower incomes, where a large share of income is effectively sheltered by it. Other credits and deductions (RRSP contributions, tuition, medical, dependants) are likewise ignored, as is the special treatment of capital gains and eligible dividends. These are estimates for planning; verify with the Canada Revenue Agency or a qualified tax professional.

Other regions: United States, United Kingdom, Australia.

Frequently asked questions

Does this include provincial income tax?
No — it is federal only. Every province and territory levies its own income tax on top, with its own brackets and rates, so your combined bill is meaningfully higher than the figure shown and depends on where you live.
Is the basic personal amount applied?
No. The engine taxes from the first dollar with no credits, so the estimate is higher than real federal tax — the gap is proportionally biggest at lower incomes, where the basic personal amount shelters a large share of income.
Are CPP and EI deducted?
No. Canada Pension Plan and Employment Insurance contributions are separate payroll deductions rather than income tax, and they are not modelled here. Your net pay will therefore be lower than the remaining-income figure shown.
What tax year do these brackets belong to?
They are labelled 2025 in this build and should be treated as illustrative. Federal brackets are indexed to inflation annually, so check the current thresholds with the Canada Revenue Agency before using the number for anything consequential.
Why is my effective rate lower than my marginal rate?
Because only the top slice of income is taxed at the marginal rate. At $120,000 the marginal rate is 26% but the effective rate is 18.32%, since the first $55,867 was taxed at 15% and the next $55,866 at 20.5%.
Are capital gains and dividends handled?
No. Capital gains and eligible dividends receive different treatment from ordinary income in Canada, and none of that is modelled. Enter ordinary taxable income and treat investment income separately.
Is my income figure sent anywhere?
No — the calculation runs entirely in your browser and nothing you enter is transmitted.

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