Canadian Income Tax Calculator 2011

There are big savings for filing on time even if you can’t pay all your taxes right away.
Find out how much 2010 income tax you owe in Canada in one easy step.

If you would like to know the income tax for 2015, 2014, 2013, 2012, 2010 or 2009 see our 2015 income tax calculator, 2014 income tax calculator, 2013 income tax calculator, 2012 income tax calculator, 2010 income tax calculator or 2009 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.

The RRSP contribution limit is based on 2011 maximum contribution limits. This actual contribution limit may be higher if there are unusued RRSP contributions from prior years.

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

Hi Brenda, All income you receive while living in Canada is potentially taxable. If the pension is an employer’s pension plan, yes it is fully taxable. If the pension is a Social Security payment, only a portion of this will be taxable. Keep in mind also, that you are required to also a file an US tax return to report the income to IRS/US; you may be eligible for tax credits as a result. Our firm specialises in assisting individuals like yourself with US and Canadian tax filing, we would be happy to discuss your service filing needs. I hope… Read more »

Brenda
Brenda

I am a working senior earning 35,000 a year plus CPP and OAP.My husband and I are separated and he being an American citizen – I am receiving a spousal senior pension from the US. Do I pay tax in Canada on this pension?

Thanks,

Brenda.

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

Hi Al-debby,

It does not matter when the severance pay is earned, what counts is when the severance pay is received. If you received the cash payment of your severance pay while a tax resident of Canada, the entire amount is reportable and taxable.

I hope this has answered your question.

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

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

Hi Zawiah,

If you did not have ANY residential ties (apartment, bank accounts, credit cards, other property, direct family members, etc.) to Canada, No, you are not required to report non-Canadian income.

BUT if you had ANY Canadian income during this time, Yes, you are required to file a tax return to report it and possibly your foreign income.

I hope this has answered your question.

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

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

Hi Giovanni,

Yes, your total income is reported on both your Quebec and Canada tax returns and is taxed based on the gross amount after personal deductions available to you.

To have an idea of your tax liability for 2012, use the calculator found here: link to lsminsurance.ca
Enter your gross income into the calculator to obtain your total tax liability.

I hope this has answered your question.

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

Al-Debby
Al-Debby

Hi, I resigned from a Saudi based company in November 2012 and as per the Saudi local laws employer has paid me 15 years of end of service benefit (Gratuity). I’m also permanent resident of Canada and established residential status in July 2012 as my family is living in Toronto since July 2012 and I’m working in Saudi. My world-wide income is taxable due to resident status as I do have residential ties in Canada. Do I pay tax on full amount of 15 years of end of service benefit or only the portion which relates to period since I… Read more »

Zawiah
Zawiah

I found this forum very infromative.

I got permanent residence in Canada in July 2010 and stayed in Toronto for 3 weeks and decided to come back to UAE as I was not sure whether I will be moving permanently to Canada. However, later on I decided to move to Canada and landed in Canada after 2 years in July 2012 with my family. I did not have any residential ties for the period July 2010 until 2012. Do I need to file tax return for 2010 & 2011 as I was in Canada during this period?

Giovanni
Giovanni

I will be a new resident in Canada and would like to better understand the taxation system.
Do I have to pay both federal and provincial taxes (Quebec)?
If yes are the provincial taxes calculated on the same income or are they calculated on the remaining difference between (income – federal taxes)? In case of my income as employee is 90K CAD x year what the net income might be only considering basic tax creedits and a family formed by my wife+my son 25 old and me?
Many Thanks for your attention.
Giovanni.

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

Hi Tony, Enter the gross amount of your earnings (in $CDN) for 2012 into the calculator on this page: link to lsminsurance.ca The calculation results will provide you with an idea of your tax obligation for 2012. If the tax calculated is higher than you pay in, you will be required to pay the additional tax at tax filing time… in most cases though, generally people get tax refunds when they file their tax returns in early 2013. Once your family joins you in Canada, you would be entitled to additional credits which would increase any tax refund to you.… Read more »

tony
tony

hi
im an electrician interested to know how much tax ill pay on €132,000 / year
i work in the oilsands in alberta
im based in calgary have 4 kids ages 4 – 9 and my wife.
they are not here at present as they will follow me over.
Does the tax situation change regardless of them being here or not at present.
Also is there a tax refund at year end like there is in Australia ?
Im Irish by the way !

Thanks

Tony

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

Hello Rene, Yes, Canada and Switzerland have a tax treaty in place, just as Canada has a similar tax treaty with the majority of countries of the world. The tax treaty prevents double taxation, it does not prevent paying of taxes. Even though you may be working in Switzerland and paying taxes, you can very much still be responsible for reporting your foreign income to Canada and paying tax in Canada. The tax treaty ensures you do not pay double taxes, so you will pay taxes, but only to the maximum of the country with the higher tax rate. I… Read more »

Rene
Rene

Hello Canada and Switzerland have a tax treaty in place. The double taxation can be avoided if ( so the tax tready) ‘he shall be deemed to be a resident of the State in which he has a permanent home available to him’ If I rent an apartment in switzerland does this override the CRA condition of not having strong ties to Canada when they determine if one is ‘Non Resident” for taxes. I am taking a 16 months leave from my job to work back home in switzerland but may job (if desired) will be available in 16 months.… Read more »

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

Hello Rene, The tax treaty between Canada and Switzerland prevents double taxation, but can still be payable in both countries. Having a rented apartment in Switzerland would not automatically make you a tax resident of Switzerland nor would it make you a non-tax resident of Canada. There are specific guidelines to determine tax residency and it is very possible that you can be tax payable in both countries. Being tax payable in both countries would mean you would have to file tax returns for your income and receive a foreign tax credit for any foreign tax paid to the lower… Read more »

Rene
Rene

Hi Great resource ! Canada and Switzerland have a tax treaty in place. Form what I understand if you are a resident of one country you will not be subject of double taxation. The treaty says one is resident if “he shall be deemed to be a resident of the State in which he has a permanent home available to him;” So if I rent an apartment in switzerland (no apt in Canada) I will be resident of switzerland and therefore not subject to double taxation. Does this apply even with strong ties to Canada (i.e. a job waiting for… Read more »

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

Hi Andrea,

Using the calculator on this page:
link to lsminsurance.ca
will permit you to get a rough estimate of your tax liability. CPP is based on a flat percentage of your income: 9.9%. So, to the tax liability calculated, add 9.9% of your self employed income for your total required amount payable at year end.

As for HST, only if you are registered with CRA are you required to collect and remit.

I hope this has answered your question.

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

Andrea
Andrea

Hi, I have a bit of a unique situation. I had a job previously that paid $41,000 gross a year. I quit April 13. In June I started my own business and accepted a project that pays about $40 per hour. With the hours I worked out until the end of the year that would amount up to about $29,000 for the year operating on my own. I don’t have any expenses at this point and live in BC. Would you be able to calculate a rought estimate of what I will owe in taxes,CPP and HST at the end… Read more »

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

Hello Mariepaule,

As a dual citizen (US/Canada) you must report ALL your income to both countries.

Your tax preparation service can assist you in avoiding duplicate tax between the two countries.

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

mariepaule damour
mariepaule damour

im canadian cityzien and us cityzien i recive 2 pension 1 american 1 canadian i live 6 m0nth in us and 6 month in canada i do my tax in canada my question is do i report the 6 month of my pension i recive in the us to canada tanks for your help marie

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

Hi Alex,

As you are a tax resident of Canada, based on the information you provided, you are required to report your world-wide income on your Canadian tax return.

As per the tax treaty, double taxation will not apply… any tax paid in the foreign country for the income will be applied as a foreign tax credit in Canada.

I hope this has answered your question.

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

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

Hi Rahul,

Whether you are required to file and report your world-wide income to Canada Revenue Agency would depend on the Employment Agreement with your employer and the tax residency status determined by CRA. Even though you may be working in a foreign country, you may still have tax residency ties in Canada making you responsible for reporting any/all income to CRA.

Contact CRA for further clarification.

I hope this has answered your question.

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

Alex
Alex

Hello.
I have established myself as a Sole Proprietorship overseas (in a country of my citizenship which has a double taxation avoidance agreement with Canada) and this will be my only source of income in 2013. Income tax rate there is 6%. I plan to make US$120k gross. I will stay in Canada 183+ days in 2013. What would be my tax obligations in Ontario?
Thank You.

Rahul
Rahul

Hi,
I have been working with a Canadian employer full time for last three years. Now, they want me to take care of one of their subsidiary overseas. I will be stationed overseas for three years, full time. I was wondering about if I still have to pay income tax. There is no income tax in this particular overseas country.
What happens if I get paid in Canada?
What happens if I get paid by the subsidiary overseas? This subsidiary is entirely different entity and has nothing to do with Canadian company legally.
Thank you so much in advance for your advise.

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

Hi Roy,

Unfortunately your idea/suggestion is not possible.

Partner in business share proportionately both the income and expenses of the business. One partner is not permitted to claim only expenses while the other income, regardless of which partner contributed or paid for the expenses.

As the additional income would be taxed in your higher marginal rate, I suggest you merely record the money you contributed as a loan so you would get the money back from the business when the cash is available.

I hope this has answered your question.

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

Roy
Roy

Thanks for taking the time to answer these questions! My wife is in the process of starting a small home-based business. I have been paying her start-up costs, which will amount to perhaps $10,000 dollars, and she expects to take in around $2000/month revenue. I have a salary that puts me at a 40% marginal tax rate. We live in BC. My question is, since I’m paying the costs for my wife’s business and she’s providing the labour, can we form a general partnership in which she claims 100% of the revenue as income and I claim 100% of the… Read more »

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

Hi Qazim, Congratulations to you and your family! Many variables determine your tax liability as a family unit. The new addition would certainly provide you with tax credits, but you would also be receiving taxable benefits as a result of the addition. It would be difficult to provide you with an estimation as all the variables would need to be reviewed to provide an exact answer. I suggest you speak with a knowledgeable tax preparer in cross border tax reporting to handle getting your tax filings in order and done accurately. Having your partner dependant upon you would also qualify… Read more »

Qazim
Qazim

Hi there,

I am married and my husband and I make 123K/year (77K and 46K) gross income. We were blessed with twin babies this year (February) and were wandering how these new additions to our family influence the tax payment i.e. does the fact that we are four in our family decreases the yearly amount we pay in taxes and if yes by how much appx.?

Many thanks in advance!

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

Hi Andrew,

You won’t receive any additional income. Your wife will be eligible to claim the Universal Child Care Benefit which would amount to about $200 per month.

If you are asking about a tax deduction, the child would amount to about $100 off your taxes when the UCCB is taken into consideration.

I hope this has answered your question.

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

Andrew Smith
Andrew Smith

I make about 60,000 a year and I have an at home wife and child. I live in Ontario, Canada and I would like to know how much additional income will I have with a dependant?

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

Hi David,

Unfortunately, without knowing how much tax was deducted from your pay by your employer and the amount of tax CRA states you owe, we can’t provide you with an exact answer.

Your best option is to enter your gross income into the calculator above. The result calculates that your tax liability is $3,276. Compare this amount to the amount you calculated and the amount CRA assessed to determine the difference.

I hope this has answered your question.

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

David Walker
David Walker

As a BC Resident i made $ 27.000 in 2011 single working 2 casual jobs, after doing taxes, i was informed i would have pay $ 800 to the government…….. does this sound right. thank you..

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

Hi Marja,

If you signed a contract maximising your income to be no more than $8,000, how can you earn more than the maximum?

Yes, if you and your employed agreed that no tax deductions would be withheld from your pay, you are required to pay any tax owed on this amount earned. You should not make any agreement to do this as this is not approved by CRA and the employer potential can be fined sand penalised for doing this.

I hope this has answered your question.

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

Marija
Marija

I really need an advice. I am a newcomer and on my first job in Canada I signed the contract stating that I will not earn more than $8000 this year. Because of that, I am getting my full minimum vage, I don’t get tax deductions. I have calculated that by the end of the year I will earn more than $8000. Will I eventually have to pay all that amount that wasn’t deducted from my pay check? My 3 months trial contract is about to expire and I don’t know if I should ask for a different payment agreement.… Read more »

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

Hi Sue, Firstly, if you ever have a concern about your prepared tax return, you should request the tax preparer to explain every detail of your return and, if your taxes were higher than previously, to explain why they are higher… it could be a mistake and easily corrected. If you have concerns about the person that did prepare your tax return, get a second opinion by going to a different tax preparer and ask for a free review. This will let you know if the return was prepared accurately. Only if you know for certain that your tax return… Read more »

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

Hi VGM,

Enter your salary into the calculator above to determine your after tax pay.

By doing this, your after tax pay is approximately $73,500.

I hope this has answered your question.

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

sue
sue

hello! i know it’s a little late to ask this question because filing of income tax is done. i just want an advice what should i do next. First, don’t know if the one who did my income tax return 2011 had a mistake because i have an owing to the government of 2000 plus. my income is not that high though. If i will contact cra for this matter, can i file an reassessment to my income tax return? And how much is the max i need to contribute on my rrsp in such a way i will not… Read more »

Villamor Gatchalian
Villamor Gatchalian

Hi There,

I was selected by one company in Calgary and want me to start by September 2012. the offer is 100,000 Canadian Dollar annually so it means my monthly salary is 8333.33, anyone can reply how much will be my take home pay after tax.

Thanks,
VMG

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

Hi Jean,

When you are on CPP Disability, you are allowed to earn some income before the payments are reduced.

Best to contact Service Canada for more information.

I hope this has answered your question.

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

Jean
Jean

Hi, I am on cpp disability and will have a small rent coming in from my home. When I claim this will cpp lower my monthly payments because of extra income? Also if I started a small home business, more like a hobby, but use it to get a few deductions to help me out, will this also affect my cpp disability? thank you.

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

Hi Sebastian,

Without seeing your completed tax return, an opinion cannot be provided to you.

Your best option to speak with your accountant and have him explain line by line how your tax return was calculated… you paid him for his work so he owes you an explanation. If your accountant isn’t helpful, I suggest you look for someone more helpful.

I hope this has answered your question.

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

Sebastian
Sebastian

Hi I’m not sure if my taxes are done right maybe you can help me out, i live in Saskatchewan. I’m a self employed driver, and in 2011 my gross earnings is a little over 101000, fuel and other deductions 15600$, and RRSP 1200$, according to my accountant I have to pay 22000$ for my tax, it seems I little high! Also my wife is self employed too, she made gross, little over 25000$ and we also got 15monts old baby,

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

Hi Zach,

The CRA Online Payroll calculator, obviously, is correct, but like all tools, the data entry person may not enter accurately or interpret the results accurately.

If used correctly, the payroll calculator would produce results which would result in you over paying income tax during the year so there would be a refund at the year of the year.

I hope this has answered your question.

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

Zach
Zach

Hi, I had a question. I made just over 42000 in 2011. the employer I worked for uses the online deductions calculator on the revenue canada website. In addition to the amount it said I needed to pay in income tax, cpp and ei, I had payroll take off an extra $50 in taxes And yet as best I can tell I still owe the government money on my tax return. How does that work? shouldn’t the governments own calculator be accurate? my salary hasn’t changed all year so if the percentage they put in to the calculator on there… Read more »

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

Hi Lance, I’m sorry, but your questions seem to convoluted but I will try to answer. I do not know what you mean by tax transfer and cannot respond to this. Based on your income, there would be no need to choose other than the greatest benefit, it’s your only option, so I do not understand why you would have any options. The textbook amount is claimed with your tuition automatically. Unfortunately, no, in Quebec no credit is provided for rental expense. When claiming medical expenses, you can only the claim your out of pocket expenses… so whatever amount you… Read more »

Lance
Lance

hi i have couple questions regarding filing the tax return. 1) % of tax transfer I am a university student in Quebec, with a tuition around $4000 for 2011. I also earned around $6000 gross work income (tax/CPP/EI were deducted when i received my paid cheque) i’m filing my tax return electronically and i wonder how much tax transfer i should made for my greatest benefit or just use the auto 45%. 2) how can i claim textbook amount since i don’t see any spot that i can filled up the amount i spent in 2011 3) i lived by… Read more »

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

Hi Karla,

The calculator above determines your tax liability in a general situation.

The first column is your tax liability, the second column is your after tax (does not include CPP or EI or other deductions) income.

When you question the amount calculated what are you comparing your T4 or your tax return? The tax calculated on your tax return can vary due to the different personal deductions available to you.

I hope this has answered your question.

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

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

Hi Crysti,

Are you parents permanent residents of Canada? Do they have a work permit? Most importantly. do they have Social Insurance or Tax Identification Numbers?

If they do not have SINs or TINs, you cannot claim any care services provided by them.

I hope this has answered your question.

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

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

Hi Kimberly,

If you are receiving benefits from the US, you are required to report this income on your Canadian tax return. Depending on your income, you may be required to pay some tax, perhaps not.

You are also required to file a US tax return or the benefits may be terminated.

I hope this has answered your question.

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

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