Canadian Income Tax Calculator 2008

Find out how much 2008 income tax you owe in Canada in one easy step.

See our new 2011 income tax calculator

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The first online 2008 income tax calculator released

[…] Ontario (CA), February 13, 2008 – The first online 2008 Canadian Income Tax Calculator  was released today. This tool incorporates all tax rates for all 13 provinces of […]

Wilfred J Pelletier CMA CFP
Wilfred J Pelletier CMA CFP

This calculator is very good BUT …
IT DOES NOT SHOW A RESULT FOR ELIGIBLE DIVIDENDS !!

(In other words it does not show the dividend marginal rate of tax for dividends received from PUBLIC companies (called
“eligible dividends” )

Please consider modifying your program ….then I can rate it 5 out of 5 !! (I now rate it 3 out of 5 because of the omission !!)

Thomas Rajan
Thomas Rajan

Does this include EI and CPP payable?

admin
admin

Hello Thomas,

I’m afraid this chart does not include EI and CPP payable as they are variable dependent on situation.

Generally, you will get all of your EI refunded if you are self-employed for example.

Wilfred J Pelletier CMA CFP
Wilfred J Pelletier CMA CFP

Please refer to my previous query – re “eligible dividends” .

Will I get a response? Thank you.

Confused
Confused

Sorry this may seem like a very silly question but its my first time…the section that says tax payable and it gives you a number is that the amount we owe the govt or is that the amount they return to me?

admin
admin

@ Wilfred J. Pelletier Thank you for your astute observations. Eligible dividends should be included and will be by next week. We sincerely apologise for any inconvenience our oversight has caused you. @ confused thought Unfortunately, this is what we owe the government. They get a good hunk of our income. Our neighbours to the south pay less tax. But as Canadians, we have better schools and roads and a far smaller proportion of our population in prisons. Not to mention universal health care. Roads, hospitals and schools cost money but save prisons and save lives. I’d be interested to… Read more »

Victor
Victor

Hi there

I was quite surprised and pleased with the calculator you made. It’s even more surprising the first of its kind was out in 2008, right when I needed one!

My question concerns businesses. Does the income tax required vary for unincorporated individuals? I run a franchise and am the sole employer and operator in the company. Thanks for any advice!

LSM Insurance
LSM Insurance

Hello Victor, Whether you are incorporated or not should not affect the taxes you pay on personal income. An incorporated individual does have more complex decisions to make regarding whether or not he wants to declare certain expenses as part of business costs or personal costs for business. As a sole employer and operator, your tax situation is much simpler. Do consult a professional though – as a business owner it’s too expensive not to take professional tax advice. If you’re a business owner with dependents – you should definitely look into a life insurance plan to protect your family… Read more »

admin
admin

Hello Wilfred,

We’ve updated the tax calculator as per your suggestion to include Eligible Dividends.

Good suggestion. Please let us know if you notice any error with our math for eligible dividends. We based on our numbers on Revenue Canada’s own website.

Cordial regards, Lorne

John
John

is this both provincial and federal, or just one.

admin
admin

Hello John,

This calculator covers both provincial and federal tax. Depending on your situation, you would be eligible for additional deductions. This calculator gives you your maximum legal liability to Revenue Canada and your province on your income.

Brenda
Brenda

What is the difference between avg tax rate and marginal tax rate?

LSM Insurance
LSM Insurance

My response – your average tax rate is overall average amount of tax you pay on your total income; whereas your marginal tax rate is the amount of tax your pay on your next dollar of earned income. I hope that helps.

Jean
Jean

Hi,
I found this very usefull.
I have moved from province to province over the years and I found it interesting to see how much tax difference there is from province to province.

My salary changes from year to year. Since you already have all the data from previous tax years, I would have found it very usefull to have a comparative amount of tax, say another column for 2007.

All around, you’ve designed a quick and powerfull tool.

J

S M Sandler
S M Sandler

This is an excellent tool. However, it does not take into consideration all the additional payroll deductions that are taken every pay period. That would be a helpful additional piece of information.

allen walker
allen walker

To whom it may concern: When I use the Canadian income tax calculator for 2008, it informs me that the Alberta tax payable will be $10,291. However, when I use Canada Revenue’s income tax rate chart it shows that for the first $37,885 the tax would be 15% or $5682, and for the balance of approx. $12,000 @ 22% the tax payable would be $2600 for a total of approx $8347. Then when I consult the Alberta provincial tax rate, which is a flat 10% of the taxable rate, it appears that the tax would be about $4600. Can you… Read more »

LSM Insurance
LSM Insurance

In response to Allen Walker’s question (sorry for the delay – I referred it to one of the tax specialist we work with), here is the info: When I went to your site, the income tax for $46,000 in Alberta showed $9,011 according to the calculator. For an income of $49,885 it was $10,255. Was the person misreading the chart? It appears that the person did not deduct the basic personal tax credit from his/her tax calculation. Federal deduction for 2008 is $1440 and the Alberta deduction is $1616. This credit applies to everyone. When discussing the federal tax, the… Read more »

Adir
Adir

Can you explain the how the concept of marginal tax rates works. Thank you for your help! A.L

Richard Parkinson
Richard Parkinson

This calculator is not meant to be the definitive tax calculator, and it is important to remember that it is generating anwerds based on your taxable income, i.e. after all deductions, etc. have been taken into account.

Personally I use it primarily for determining the marginal tax rate, which I then use to determine the tax consequences of new investments, especially if considering a GIC where 100% of the gain is taxable, vs. an equity investment where the gain is 100% capital gain, on which only 50% is taxable.

Yamini
Yamini

Hi,

This is a great tool. It makes it so much easier to get an idea of how our income bracket makes a difference on our income tax. It helped me get an idea of how much RRSP contribution is optimal for my income tax bracket.

Thanks for this great tool!

Yamini

Derek
Derek

In regards to Yamini, which column would you use to determine or atleast get an idea of your RRSP contribution ? would you take your taxable income and multiply it by your marginal rate on ineligible dividends ?

Faraz
Faraz

Hi, This is a great calculator !!
For a person who does not have a regular income (eg. it’s only from capital gains), this calculator shows that the marginal tax rate on the capital gains is zero. I entered $9000 as my taxable income and it says i don’t owe any money to the government which makes sense and it says that my marginal rates for capital gains and ineligible dividends are both zero..!! is that true?

LSM Insurance
LSM Insurance

Thanks Faraz!

You are correct for a taxable income of $9,000. However using BC as an example, their Basic Personal Exemption is $9,323. So any amount over that amount will be taxable. Once the income is over $10,320 the taxable income is based on both the federal and provincial rates, minus the basic personal exemptions.

Regards …

hanan aboueleinein
hanan aboueleinein

I am a new comer to Toronto on july 2008 I am not working and I still searching inspit that I have PHD degree in Law , I wounder if I have to present any income tax statement for the year 2008 .

Richard Parkinson
Richard Parkinson

Thanks for asking this question. This question is one of those that many people ask from time to time, and worth a refresher. Fortunately the CRA website is always a good source of answers to these questions. The answer to your question can be found at: link to cra-arc.gc.ca. This site summarizes when you need to file a return: Do you have to file a return? You have to file a return for 2008 if any of the following situations apply: •You have to pay tax for 2008. •We sent you a request to file a return. •You and your… Read more »

Patsy
Patsy

Hi,

I have not done my income tax since 2007.

I receive ODSP only.

Should I file my income tax and why?

Thank you.

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

Hi Patsy,

Even though you may have non-taxable income such as ODSP, it is a good practise to file your tax return every year as you are eligible for refundable tax credits.

Being a resident of Ontario, you are eligible to apply for the GST Rebate and the Ontario Sales Tax/Rent Credit for the years up to 2009 and the HST Rebate and Ontario Tax Credit for 2010. Conservative estimating approximately $1000.

I hope this has answered your question.

Regards,
Storoszko & Associates
Tax Specialists
http://www.storoszko.net
Tel: 647 367-3477