Canadian Income Tax Calculator 2015

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There are big savings for filing on time even if you can't pay all your taxes right away.

Find out how much 2015 income tax you owe in Canada in one easy step.

If you would like to know the income tax for 2014, 2013, 2012, 2011, 2010 or 2009 see our

Don't forget to file your taxes on time. There are big savings by filing on time, even if you can't pay all your taxes right away.

These calculations do not include non-refundable tax credits other than the basic personal tax credit.

Your annual taxable income excluding income from investment such as capital gains and dividends.

1x

Capital gains are profits which result from a disposition of a capital asset including land, buildings, shares, bonds, fund and trust units, where the amount realized on the disposition exceeds the purchase price. The gain is the difference between a higher selling price and a lower purchase price.

50%

Generally, eligible dividends are dividends you have received from big, public companies.

1,38x

Generally, ineligible dividends are dividends you've received from smaller, private companies.

1,18x
Deduction Claimed for Current Year
PROVINCE
TAX CREDIT
TAX PAYABLE
AFTER TAX INCOME
AVERAGE TAX RATE
MARGINAL TAX RATE

These rates give you a basic of idea of how much tax you should pay, but depending on your employment and business and personal circumstances you could pay a lot less. Be sure to visit a competent tax advisor before filing your return.

The RRSP contribution limit is based on 2013 maximum contribution limits. This actual contribution limit may be higher if there are unused RRSP contributions from prior years.

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31 Comments

  1. MJ Buenafe 11/21/2014 at 2:50 pm

    I am a Canadian citizen, residing and pays tax in Canada.
    I work for a consulting company that services both clients in US and Canada. It is on commission basis.
    The company now is telling me that they will pay in in US$ for US clients that I service from this time on, which I don’t mind. However, how does the filing of taxes works?
    Before, they send me a T-4 for commission I received in Canadian dollars. Now, what forms they are suppose to send me, so that I can file my tax accordingly?
    Looking forward to hearing from you.
    Thanks,
    MJ

  2. Hi MJ,

    This is a question you should be posing to your employer.

    They may issue you a Canadian T4 or they may require you to obtain an US ITIN (tax number) and will require you to file an US tax return,

    Best to get a handle on this before year end so you are not surprised.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  3. Patrick 12/07/2014 at 3:39 pm

    I am on your site… I am trying to find what the off the top tax rate is for 20$ per hour @ 40 hours per week.

    In advance, thank you.

  4. Hi Patrick,

    The calculator above determines ANNUAL tax liability.

    So, in your case, multiply your $20 x 40 x 52 weeks to get your annual taxable income and enter it in the calculator above.

    The result will be your annual tax liability rate.

    To reduce it to your weekly rate, divide the amount by 52 weeks.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  5. Sayem Ahmed 12/07/2014 at 4:00 pm

    Hello,

    I recently moved to BC on October 20th, and started a new full-time permanent job. Previously, I was self employed in Quebec, for 9 months. I did not file for taxes from Quebec, nor did I have registration as self employed while I was working in Quebec.

    Now, I am unsure from where do I file my taxes at the end of the year. Do I pay taxes to Quebec because I used to work and reside there for 9 months? How do I process my tax application in BC now ?

    Thanks.

  6. Hi Sayem,

    Very good question!

    Provincial tax residency is not as clear cut as it appears on the T1 tax return.

    Quebec follows a more restricted manner of determining residency than other provinces and strictly enforces this.

    As you lived in Quebec for nine months, you are a resident for tax purposes to Quebec for all world income earned during this time.

    As for filing your tax return, you may have different options… you must file a Quebec Tax Return for the Quebec income; you must file a Federal T1 to report your total world-wide income for 2014, but you also have the opportunity to either report the BC income on the BC tax return or as Quebec income on the Quebec tax return.

    We recommend you seek the services of a professional tax preparer with the knowledge and experie3nce of inter-provincial tax reporting requirements to reduce your tax liability.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  7. Bill 12/08/2014 at 8:42 pm

    Hello,
    My elderly father put many of his stock purchase receipts in the shredder to forget about the thousands he lost in the stock market over the years. It was an unfortunate mistake in a moment of utter despair. This year he actually has capital gains, and he would like to dispose of some of those near-worthless investments to offset the gains. Since he no longer has the purchase slips to prove how much he paid, can he instead provide the CRA with brokerage statements showing the book value of the investments ?
    Thanks in advance for your reply.

  8. Hi Bill,

    Your dad’s primary issue is not with the CRA as the purchase price should be readily available from the broker’s statement or historical records, but actually with the broker… depending upon the stock owned, you may require the certificates to sell the stock, unless the certificates have no value recorded on the broker’s statement.

    Be sure to claim every potential cent in capital loss to cover current and future gains, but also because capital losses can be claimed against any income on your dad’s Final tax return (a much desired break for his estate).

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  9. Saif 12/28/2014 at 11:30 am

    hi there!

    I would like to know as a realtor, how can we calculate tax rate and what business expenses are tax deductible. Also, have you conducted tax planning and full tax services for realtors before

    thank you!
    saif

  10. Saif 12/28/2014 at 11:35 am

    I also wanted to ask if there were any tax strategies when collecting HST while paying HST on other business accounts.

    Thank you

  11. Hi Saif,

    To calculate your tax rate, you enter your net realtor business income into the calculator above.

    All business related expenses are deductible from realtor business income.

    Yes, our firm does provide tax planning and filing services for clients who are realtors.

    For more information, please email us directly or through our web site link below.

    There are no tax strategies for HST, other than track the correct amount for your income transactions and track every expense to maximise your input tax credits.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  12. Charlie 01/18/2015 at 6:03 pm

    I’m originally from Toronto, Ontario, Canada, but moved to the U.S. at the end of November 2013. Do I fill out 2 tax returns, one in Canada, one in the U.S.?

  13. Hi Charlie,

    If you have permanently moved to the US you would file a Canadian Return for the period from Jan – Nov and a US return for the rest of the year.

    If you are maintaining your residency status in Canada, you would file the Canadian return for the full year with your world wide income and a US return for Nov to Dec 31 and you would get a Foreign tax credit for any US taxes paid.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  14. Hi Nash,

    Enter your income details into this calculator for your approximate answer:
    link to lsminsurance.ca

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  15. Jay 04/08/2015 at 1:45 pm

    Hi,
    I am a Canadian left to the Gulf to work there. I certainly do not intend to come back to live in Canada. I do not have any ties in Canada (closed my bank account, have no driving licence, have no home, have no personal belongings, no social ties, …etc). Actually, the only tie I have is my Canadian passport.
    Also, my wife (64 years old) did not decide yet whether to permanently leave Canada and come with me or stay with her son (who is 35 years old, lives and works in Canada).
    My question is: am I considered none-resident?
    What if my wife decided to stay in Canada?
    Pls note that, regardless of my wife decision, I did permanently left Canada and have no intention to come back.
    Appreciate your response.
    Jay

  16. Hi Jay,

    Regardless of you leaving Canada without the intention to return, you may still be considered a tax resident and required to file tax returns in Canada. But even if you are a non-resident, if you have Canadian sourced income, you are required to file a Canadian tax return.

    You state you have moved to the ‘Gulf’… whichever country you are living within the ‘Gulf’ certainly must have a tax treaty with Canada. Depending on the factual status of your tax residency with the country in the ‘Gulf’, you may be required to report your world-wide income or just your Canadian income on a Canadian tax return.

    Cutting financial ties (bank accounts, credit cards, etc.) and cancelling your Drivers Licence and Health Card is a start. Only one last issue remains that continues to require you to file a Canadian tax return… you are married and your wife lives in Canada. Familial ties decide tax residency just as financial ties do. If you do not file a Canadian tax return reporting your worldwide income, she is required to do so on her Canadian tax return.

    Plus, assuming your wife is 64, you and/or she may be in receipt of CPP and or OAS and this must be reported on a Canadian tax return; conditions apply.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  17. Nano 04/13/2015 at 11:29 am

    My mother lost money with the Bre-X fraud, however she neglected to record her losses at the time (1997) as she didn’t have any capital gains. She was not aware she could record such losses and carry them forward indefinitely for use against capital gains in future years.
    As of December 2014, some 20 Bro-X shares were still listed in her holdings on her brokerage statements. She disposed of these shares, and others, before the end of the year through a “Deed of Gift” with her Brokerage. There was no book value attached to these 20 shares, but she originally received them as a “dividend in kind” based on her 500 Bre-X shares.
    My question is: Can she include the cost of the original Bre-X shares to determine the adjusted cost base of the Bro-X shares she just disposed of through “Deed of Gift” in calculating a capital loss for 2014?
    Thanks in advance for your reply.

  18. Hi Nano,

    Your mother can claim the loss under Section 50(1) of the Tax Act, but only the 20 shares and you MUST determine the value of those 20 shares at the time she acquired them.

    When were the original 500 shares ‘disposed’? She would be able to claim that loss if she has a brokerage statement dated within the past five years.

    Losses back in 1997 cannot be claimed as the date has passed the seven year limit for tax return revision.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  19. Merv 11/11/2015 at 9:33 am

    Thank you for such a fabulous site.

    I have 2 questions:

    1. I have accompanied my brother to out of town hospital location whilst he was having surgery. He had no one else to look after him. As a result I incurred hotel, meals, gas and parking charges. Am I able to claim these amounts for family care expenses?

    2. I will receive a substantial amount of RRSPs when I reach the required age. Is it financially prudent to take these out before reaching the requisite age bearing in mind that my income is currently low?

  20. Hi Merv,

    Unfortunately, no expenses you incurred to assist your brother for his medical needs are deductible by you. Your brother can claim any related travel expenses he incurred, but not any related to you.

    At age 71, RSPs are converted to RIFs. RIFs are designed so that an approximate equal amount will be distributed to you each year through age 95. You can estimate the annual RIF minimum withdrawal amount, once you reach 72, by dividing the total of your RSPs by 25.

    Withdrawing RSPs prior to age 65 will not provide you with any taxable advantage… if you are dearly in need of the cash, and the RSP funds are not Locked-In, you do have the option to withdraw and be subject to the withholding tax level for the amount you withdraw. The only downfall here is that the annual RIF amount would be reduced.

    If you are aged 65, but under 71, it would be advantageous to convert some of the RSPs into RIFs and then withdraw funds as you would also be able to claim the pension income deduction (if you have no other private pension income source).

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  21. Dana 11/21/2015 at 11:16 pm

    Hi,

    I been working as a personal support worker privately to a client, She’s giving me check for payment and i depositing it to my bank account.
    My question is:
    1. Should i apply for income tax for it? what i earned doing private job?Im so confuse right now what to do. Hope you can help me about this. Thanks and more power.

    Regards,
    Dana

  22. Deborah 12/01/2015 at 2:55 pm

    If I work in Ontario as a nurse and only live in Quebec
    I will be contributing to CPP not QPP and have Ontario tax deductions on my paystubs do I have to file a Quebec tax return?

  23. Hi Dana,

    Any money you receive for doing any type of work is reportable to Canada Revenue on your income tax return.

    In your case, as you are working as a support worker, you must report your income as your employer will be reporting it to CRA as a deduction for their care.

    Be sure you keep all records of your payments you receive as well as all receipts for expenses you incurred in doing your job (transportation, office supplies, etc.) as these are deductible against income tax you would payable.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  24. Hi Deborah,

    As you live in Quebec, you must file a Quebec tax return. You cannot file an Ontario tax return for working in Ontario.

    The CPP/QPP and Provincial Income Taxes will be recalculated when you file your income tax return.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  25. Brian 12/02/2015 at 2:07 pm

    Hi there,

    I am a Canadian and live in Ontario. I have a small business (I’m not incorporated or anything) providing services to a couple US customers. I am paid in USD. The business has earned approx. $7500 USD. Now, a few of the US clients are asking for W-8BEN forms with the year end coming up. I’m not sure what to do and how to claim this (on my personal income tax?) or incorporate for a better tax rate? I don’t have a lot of expenses to claim. Will I pay taxes to CRA only, not the IRS? I also have a separate salaried job ($100K/year).

    Any insight would be greatly appreciated!

    Thanks

  26. Hi Brian,

    You have not provided sufficient details to answer your question appropriately… here goes:

    A W-8BEN is the US version of a T4 slip for non-US residents. It is issued by someone withholding income tax payments.

    Are your customers withholding tax from your payments?

    Your topic is to complicated to answer fully in this forum, we would be happy to answer your questions if you contact us directly so you can fully explain your situation.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  27. Jennie 12/21/2015 at 9:12 pm

    Hello…
    I am a Canadian Living in the Cayman islands. I am wondering if it beneficial for me to pay taxes. I am a single mother and I just moved here again… the last time I lived here I did not cut my ties for tax purposes as I was not making very much money. I know have a better job and make about 40,000 CAD there is no income tax here. I would like to continue to receive my sons child tax and universal child tax credit as well as the money for his education fund for 2016 taxes. What do you think?

  28. Hello,

    It is the law and your obligation to file a Canadian tax return and pay Canadian taxes, if you are a Canadian resident for tax purposes. Regardless of the amount of income you receive outside of Canada, all is to be reported on your Canadian tax return.

    For you to receive the Canadian tax benefits, you MUST file a valid Canadian tax return reporting your foreign income. If you neglect to report your foreign income and receive Canadian Benefits, you are committing tax fraud.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  29. Julio 02/02/2016 at 1:05 pm

    I have a Defined Benefit pension from a UK company worth about £10,000 p.a. which I am considering bringing over to Canada in 2016. There is also a back-payment, which I will take as a lump sum.

    MY QUESTION IS: Will this pension (and the lump sum) be eligible for pension income splitting in Canada (assuming tax is paid in Canada and not the UK)?

    BACKGROUND INFORMATION: I am 66 years old. My wife is 63. We are both Canadian (as well as British) citizens, and both of us have been resident in Canada for some years.

    I look forward to hearing from you.

  30. Hi Julio,

    By the sounds of your question, it would appear you are not reporting the UK pension to CRA currently.

    This is a major disadvantage to you as you are losing out on pension credit and pension income splitting NOW.

    Even though you may not be depositing the UK pension in a Canadian bank account, you are required by CRA to report this income. It would also allow you to avoid double taxation when CRA finds out you may be not reporting the income accurately. If your UK pension is subject to UK taxation, you are losing out on Canadian foreign tax credit, the pension deduction and pension income splitting.

    Bottom line: report the income legally to get the Canadian pension income splitting tax deduction.

    I hope this has answered your question.

    Regards,
    Storoszko & Associates
    Canadian & US Tax Specialists
    http://www.storoszko.net
    647 367 3477
    Twitter: @Storoszko_Assoc

  31. Frank 02/06/2016 at 2:55 pm

    Hi,my son has been attending University in London England for the last three years at the London school of economics (he graduates this summer )he is a canadian paying the international fees.

    My question is: Do you know if I can claim the fees as a tax deduction against my income here in Canada?

    Thanks for any help you can provide.

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