Canadian Federal Income Tax Calculator

Our calculator helps you estimate your federal income tax liability based on your income and deductions. This tool is designed for Canadian taxpayers to simplify the tax filing process.

Data Source and Methodology

This calculator uses data from the Canada Revenue Agency 2023 tax guidelines. All calculations are based on the latest available formulas and tax brackets.

The Formula Explained

The calculation is based on your taxable income after deductions. The formula applied: Tax = (Taxable Income - Deductions) × Tax Rate.

Glossary of Terms

Annual Income: Total income earned in a year before any deductions.
Deductions: Eligible expenses that reduce taxable income.
Taxable Income: Income subject to tax after deductions.

Frequently Asked Questions (FAQ)

What is the Canadian Federal Income Tax?

The Canadian Federal Income Tax is a tax levied by the federal government on the income of individuals and businesses.

How is my income tax calculated?

Your income tax is calculated based on your taxable income, which includes earnings from employment, business, investments, and other sources.

Are there any deductions I can apply?

Yes, you can apply various deductions such as RRSP contributions, childcare expenses, and more.

What is the deadline for filing taxes in Canada?

The deadline for filing taxes in Canada is April 30th for most individuals.

Tool developed by Ugo Candido. Content verified by the Wealthsimple Expert Team. Last reviewed for accuracy on: October 2023.