Canadian Income Tax Calculator 2009

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

Find out how much 2009 income tax you owe in Canada in one easy step.

If you would like to know the income tax for 2012, 2011, 2010 see our 2012 income tax calculator, 2011 income tax calculator, 2010 income tax calculator, or go back to 2013 income tax calculator.

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.

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.

* Eligible Dividends are dividends from a Canadian corporation on which corporate tax has already been paid. Normally the dividend issuer will alert you to the eligibility of a given dividend. All other Canadian dividends are considered Ineligible Dividends. Non-Canadian Dividends do not qualify for the dividend tax credit. They are simply treated as income.

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Richard Parkinson
Richard Parkinson

Regarding the deductibility of the transfer tax in BC. For those outside of BC, we have a property transfer tax when a property is purchased that is 1% of the first $200,000 and 2% of the remainder. There are more details to it, but a Google search for BC property transfer tax will lead you to more information than you want to know. The answer is NO, it is not deductible, any more than it is for your principal residence. It is not deductible even for a rental property. However with a rental property it would be added proportionately to… Read more »

Kevin
Kevin

thanks for the info on the transfer tax question…
a great web site

Calvin
Calvin

I have a question that I wish tax gurus out there can provide some comments. I paid tax in BC and Alberta in 2008 (in AB Dec 31 2008), will CRA calculate my provincial tax using BC tax rate and/or AB rate? (since there is a big difference.) Also, will I get from both BC and AB? Many thanks.

Calvin
Calvin

I meant ‘get refund’ in the last question…

Richard Parkinson
Richard Parkinson

Sorry I forgot to specifically comment that the fees for notary etc. for a recreational property are not deductible either, but assume you deduced that from my previous answer.

Richard Parkinson
Richard Parkinson

I always like to refer to the definitive reference wherever possible, which for tax related questions is the Canada Revenue Agency (CRA). The quick answer is that under normal conditions, a person files a tax return for the province in which they are residing on December 31 of the taxation year. Sometimes, a person may be considered to be a resident of a province even if they have temporarily relocated to another province. This could happen if the person was employed in a temporary job, or was a student in a province where they do not normally reside. A person… Read more »

Anne
Anne

Hi Lorne and Richard,

I was wondering if you could share with me info on how one could maximize gains from sale of equity (most of the time it does not happen these days), held less than a year, when filing my return for 2009. Thus far for the year this has been my sole source of income. Thanks for your help.

Chris
Chris

Hi. I have a question about the CRA Moving Expenses Deduction. Last year I moved for the purpose of obtaining work. With respect to the $8,000 Property Purchase Tax (PTT) payable on the purchase of my new home in BC, I have heard that the CRA has rejected claims for this as a valid deduction. As the CRA’s materials appear to indicate otherwise, including in the description of eligible expenses “any taxes paid (other than GST/HST or property taxes) for the transfer or registration of title to the new residence”, I wondered what experience others have had in claiming this… Read more »

Chris
Chris

Thank you.

BORA
BORA

Hi,
Could you pls. let me know when is the last date for Income tax return filing in ontario canada.

Samuel
Samuel

Hi
I am coming back to Montreal next academic year and will make 85000 as before, but I now have a family of 4, with 2 kids age 1 and 3 and their stay at home mom. What can I anticipate as net income in Quebec?
Many thanks, best

Samuel
Thanks

David
David

If I am a Citizen of Canada and have income from commercial property (rent) in the USA, will I have to pay income tax to both Canada & USA from all income earned?

michel
michel

Hello,
I earn approximately 70,000 a year before taxes. I have 3 children. My wife is a stay at home mom and we are wondering how much she would have to earn yearly to make things worthwhile. Leaving home will mean less deductions etc

Any comments would be appreciated

Richard Parkinson
Richard Parkinson

The child care calculator Lorne suggested is an excellent start. Typically people find that after the expenses, especially daycare, are taken into account, plus the loss of the dependent spousal deduction, 75% of the gross income is lost, leaving 25% of real income. Of course it depends on many factors, e.g. the potential income of the employment seeker, and daycare cost. In Quebec daycare is $7 per day, making it more affordable than almost anywhere else. If you have some basic Excel skills, it can help you do the math as well. Out of interest I Google searched on variations… Read more »

paul
paul

hi, i becane a PR in canada in April 2009, my wife live here and goes to school. I returned to my home country because i have one year more on my contract.
I have a saving of 30,000. and my annual income is 30000.
I would be greatful if u can tell me how much tax i have to pay on my saving and my income.

Thank you

James
James

If I am reading this correctly for my situation:

$68,344 (Gross)
– 10,375 (Fed standard deduction)
– 7,778 (NL standard deduction)
__________________________________
= $50,191 (Taxable Income)

According to this calculator, my after tax income is $39,307. This comes out to 42.5% of my income is lost to taxes. This seems very high. Does this make any sense? Is $39,307 the actual amount of money I will hold in my hands after taxes?

Richard Parkinson
Richard Parkinson

Thanks for your question. The good news is you missed an important part of calculating the deduction. Just as the tax on your gross is a percentage of it, e.g. the first federal level of tax payable is 15% of $40,726, your deduction is also a percentage. so in your calculation the federal minus is: 15% of 10375 = $1,548.00 7.7% of $7,778 = $ 598.91 Total exemption (BPA) = $2,146.91 If you use the tables from the CRA link to cra-arc.gc.ca you will find that the tax payable on your gross amount before deduction of the Basic Personal Amount(BPA… Read more »

Dennis
Dennis

Love it. Best thing ever to work out different employment option scenarios. Thanks for the service!

Jerry
Jerry

1. Does your calculator take into account CPP and EI contributions as well as OHIP premiums in Ontario?
2. I plan to be out of country for a significant part of the year and work outside of the country.
I intend to rent out my residence but still keep Canadian residency status. All my Canadian status in tact, Ie driver’s licence, bank accounts,address etc. Will be coming back regularly ( every few months). Would I be considered a resident of Ontario for tax purposes. I would have a Canadian income still from other sources. (not government pensions)

401k
401k

That is an amazing calculator, I input $120,000 as the income and the taxes for BC are $33,896 and taxes for Ontario are $36,719… Why this difference of almost $3000? That’s like $300 a month and is a significant chunk of money from people’s budgets!!

Richard Parkinson
Richard Parkinson

It interesting that the tax rates vary so widely across the country. There are 13 provinces and territories in Canada today, which for $120,000 Nunavut is the place to live for the lowest tax payable at $31,158, vs. Quebec with the highest at $41,761. Of course there are many influences on a regional basis why there are these rate differences. The federal rates are the same for all thirteen, it is the indivdual provinces and territories that are different. You can find the details at the CRA website: link to cra-arc.gc.ca. Ontario and BC are in the process of harmonizing… Read more »

scott
scott

Great tool. THis helps me know if im saving enough for my end of the year tax filing 🙂

Looks like I’m doing ok so far! 🙂

Chuck
Chuck

This is a great online tool ! Well done.

alana
alana

Hi
Great site.
1. Just to confirm, the calculator reduces the net income I put in by the Basic Personal Exemption only.
2. My question is this, How do I determine the maximum to take in T4 salary vs taking CCPC dividends out and paying personal tax and the corporate tax at 16.5%? When I calculate the dividend monies as income (average tax rate) would I still have to add on the 16.5% corporate tax that was already paid on the monies?
I can’t seem to work it out correctly. The T4 income always works out better on the average tax rate???
Thanks

Richard Parkinson
Richard Parkinson

Here are hopefully the answers you were seeking. 1. Yes, the calculator calculates the tax based on your input number, then subtracts the Basic Personal Amount (BPA) as we better know as our personal exemption. Therefore, given that most people will have additional deductions and credits, consider this number a worst case scenario. 2. The answer to the question, “do I pay myself salary or dividends”, or in what proportions is not clear cut. For the sake of simplicity we will • ignore GST issues • assume that the corporation is located in Ontario and the owner resides in Ontario… Read more »

Winn
Winn

I want to move to Ontario in July. I have the option to stay north (NWT) I make 100K which place will offer the best deductions to get money back. I also want to know how much RRSP I need to stay in the black. If I move to Ontario I will communite to/from the north.

Richard Parkinson
Richard Parkinson

This calculator shows that NWT has lower taxes than ON, however I suspect cost of living in NWT is higher so it probably balances out, i.e. it looks life ON gasoline is 15-20 cents less than in NWT. Your best bet is to create your own spreadsheet using the tax tables from the CRA – link to cra-arc.gc.ca For 2010 the RRSP contribution limit is $22,000 or 18% of your income, but you also may have some spare contribution room. It will be a matter of playing with the numbers to determine the right amount of RRSP contribution each year… Read more »

marcus macdonald
marcus macdonald

I have private insurance due to a disability and am wondering if you could give me some suggestions with respects to deductions in assisting me in not paying so much tax on the amount. RRSp’s unfortunately cannot be included this year. Are there any other possible deductions I can take advantage off? Thank you

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

Hi Marcus,

Based on the information you provided (you did not indicate if the private insurance benefit is taxable or tax-free, or your disability status, etc.), you may be eligible to obtain and claim the Disability Tax Credit which will provide you with tax credits for tax savings.

If you qualify for the Disability tax Credit, I suggest you contact a tax specialist to review your tax savings.

I hope this has answered your question.

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

Eric
Eric

whats the minimum amount of income you can make , before you have to file income taxes in Canada.

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

Hi Eric,

The purpose of filing a tax return is not only to report taxable income, but to also apply for tax credits and benefits.

To answer your question: $25.

By filing your tax return you also apply for GST rebates, provincial tax rebates, and other tax benefits.

I hope this has answered your question.

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

janelle b
janelle b

Hi there. I’m a 19 year old college student in ontario I live with just my mother and 5 year old sister. I didn’t file my taxes when I had my first job from 08 to 09 I made about 7000 $ and still haven’t filed. The calculator shows 0$ when I enter this in so does that mean I don’t owe fedreal tax money for those years?

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

Hi Janelle, Technically, you ar correct that you would not be tax payable for those years, as any income over $10,000 is taxable. But paying taxes is not the only reason for filing a tax return. By filing a tax return, even though you do not have taxable income or any income entitles you to file for tax credits and benefits. For example in Ontario, you could have transferred your tuition and books credit to your mom to reduce her taxes. You could also have applied for a rebate of the Ontario Retail Sales Tax you paid and also the… Read more »