Canadian Income Tax Calculator 2015

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

Remember that some life insurance types impact your overall tax situation. For example, whole life insurance or universal life insurance are typically the best for a single individual, as the growth of cash in these policies is tax-deferred as long as your deposits don’t violate the maximum tax accrual rules.

When you are married, a permanent joint last-to-die life insurance policy might work very well. It pays out a tax-free benefit to the policy owner’s beneficiary when the second spouse registered on the policy passes away.

A small tip: 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.

Terms of Use – Disclaimer

42
Leave a Reply

avatar
  Subscribe  
Notify of
MJ Buenafe
MJ Buenafe

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… Read more »

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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

Patrick
Patrick

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.

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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

Sayem Ahmed
Sayem Ahmed

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.

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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… Read more »

Bill
Bill

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.

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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… Read more »

Saif
Saif

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

Saif
Saif

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

Thank you

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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

Charlie
Charlie

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.?

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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

Jay
Jay

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… Read more »

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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… Read more »

Nano
Nano

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… Read more »

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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

Merv
Merv

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?

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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… Read more »

Dana
Dana

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

Deborah
Deborah

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?

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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… Read more »

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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

Brian
Brian

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… Read more »

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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

Jennie
Jennie

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.… Read more »

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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… Read more »

Julio
Julio

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… Read more »

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

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… Read more »

Frank
Frank

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.

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

Hi Frank,

In order for you to claim your son’s foreign tuition he must first report and claim on his personal tax returns each year he was in school attendance overseas.

For him to report foreign tuition, he must obtain a tuition receipt from the school which itemises the amount of tuition and the number of months he attended full or part time.

Once your son reports this information on his tax returns, he can then transfer the maximum amount transferable to you.

I hope this has answered your question.

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

Xavier
Xavier

Hi there, a friend of mine is a spouse of a a permanent resident of Canada but doesn’t have a work permit. He is living with his spouse in Canada and waiting for the application of permanent residency to be approved. He incorporated a small service company with another permanent resident in Ontario. In order to get some income from the company, he is considering the following options: a, salary/wages from the company he owns, b, commission from this company, c, contract work paid by this company, d, dividends from this company. Since he doesn’t have a work permit, it… Read more »

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

Hi Xavier, As you know, your friend is without a work permit… so he is unable to engage in ANY type of work, whether paid or unpaid. Unless your friend, is an investor only in the service company, meaning he does not participate in the company operations, yes, option D is the only opportunity to him to earn income from the company. Immigration Canada is VERY EXPLICIT is what it determines as work… ANY WORK done by your friend would be a violation of his residency application and can result in his residency application being denied. I hope this has… Read more »

frank
frank

HI, I am hoping you can give me an opinion on the following question: I have received my pension benefit statement and I have a choice of choosing various survivor benefit options for my wife. If I choose the 60%survivor option my wife would receive my pension less $2254 per.month if I die first. If I choose the 100% survivor benefit my wife will not lose anything if I die first. I am leaning towards the 100%option as my wife will not be getting CPP or a company pension. My pension income will be $290 less a month if I… Read more »

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

Hi Frank, Your question is not actually income tax related, so it’s beyond the scope of this forum. You should consult with a Financial Planner or your Benefit Administrator to determine the actual bottom line payout. You do not mention what your monthly pension will be, so this can only merely be a guess for you. If ever you have the option for a spousal benefit, take advantage of it. In your case, you have a choice of spousal benefit options. Based on the information you provided, your estimated monthly pension is $5635.00. If you choose the 60% option your… Read more »

frank
frank

HI, first of all I would like to thank you for helping me in the past.

My question this time is about RESPs.If I take out an RESP for both of my grandchildren before the end of February 2017 can I deduct it from my taxable income for 2016?

Regards.
Frank.

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

Hi Frank,

Do not confuse RRSPs and RESPs…. contributions to RESPs are not deductible against taxable income as RRSP contributions are.

RESPs are tax deferred accounts for the purpose of providing for a child’s education…. money contributed is not tax deductible and the income earned, as well as any contributions from the government, within RESPs is taxable in the child’s hands when they withdraw the funds for education purposes.

I hope this has answered your question.

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

Suthan
Suthan

Hi,

My husband earning $ 39000.00 annualy from his Corporate business*(Cleaning contract) started in 2014. He registered HST# this year 2017. previous year he didn’t claim HST at the same time his employee doesn’t pay HST as well. How much he has to pay HST for this year? and what to do for previous year?

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

Hi Suthan,

Your question is not answerable through this forum… you should refer the question to your husband’s bookkeeper or accountant who keeps the company’s books and records the HST Collected and HST Paid to determine the amount of HST Payable.

When your husband registered for GST, CRA advised him of the reporting periods required… refer to the communication your husband received from CRA for reporting periods.

I hope this has answered your question.

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

Cozy
Cozy

Can both parents claim child care expenses?

Storoszko & Associates, Tax Professionals
Storoszko & Associates, Tax Professionals

Hi Cozy,

Only one parent may claim child expenses. Generally, this is the lower income earner.

Both parents MAY be able to claim child expenses under EXTRAORDINARY circumstances.

I hope this has answered your question.

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