Canadian Income Tax Calculator 2013

There are big savings for filing on time even if you can’t pay all your taxes right away.
Find out how much 2012 income tax you owe in Canada in one easy step.

If you would like to know the income tax for 2015, 2014, 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.

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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Michael C
Michael C

How do I obtain a copy of 2012 T5 slip?

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

Hi Michael,

For a copy of your T5 slip, you can either contact the issuer of the T5 slip or the CRA.

I hope this has answered your question.

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

Dan D
Dan D

Hello:

I am self-employed for the 1st time in 2012. I grossed about $19K over a 4 month period while incurring about $8K in expenses.

This included about $5500. for inventory and $1000. for repairs to inventory. As this was my only income for 2012 am I entitled to a tax
refund?

Thanx.

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

Hi Dan,

Unless you’ve paid income tax during 2012, you won’t receive a tax refund.

Although you may not be tax payable or refundable, as self-employed, you are required to contribute to CPP. Your contribution required would be approximately 10% of your net income.

So, even though you may not be tax payable, you do have a tax liability for your 2012 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

Shaddy
Shaddy

Hi, I was born in Canada and left the country to Egypt when I was 5 years old. Since then I had no ties with Canada. I have lived most of my life in Egypt and across the GCC ( UAE,QATAR,KSA): 1- If I will return to Canada/becoming a resident anytime in the near future, will I pay any taxes on my income/assets gained in the past. 2- If I will send my wife and son to live in Canada while working in Qatar, will I be subject to taxes. Approx. how much I will pay , if my salary… Read more »

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

Hi Shaddy, Answers to your questions: 1) No, you are only taxed by Canada on income while a tax resident of Canada. 2) Yes, as having your family in Canada will make you a factual tax resident of Canada. Use the calculator above to determine your tax liability. 3) Yes, any income, including investment/interest income, is taxable in Canada while you are a tax resident of Canada. 4) Same as 3. 5) Yes, there is a tax treaty between Canada and Qatar. Any income withheld and paid to Qatar is eligible for a foreign tax credit in Canada. I hope… Read more »

Denae
Denae

Hi, A non-profit organization for which I used to volunteer wants to hire me as a “contractor” and pay me to do some work that’s similar to what I did as a volunteer. I put “contractor” in quotations because I am not an “independent contractor”… I am not operating a business. This is a one-off. The project would take less than a month and I will be paid less than a thousand dollars in total for my work. Will I need to report this income at tax time? (I am also an employee elsewhere, and having taxes, EI and CPP… Read more »

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

Hi Denae,

The terms ‘contractor’ and ‘independent contractor’ are essentially the same. Any contractor work is considered as operating a business.

Yes, any income you receive, regardless of the source is reportable and taxable.

As a contractor, you will be able to claim any direct expenses you will incur for doing this project, 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

Susan B
Susan B

I have always lived in Quebec. I just bought a house in Ottawa but I am keeping my Quebec house. I work mostly in Ottawa and will live 60- Quebec. How do I determine my residence for tax purposes. What do I have to do to be considered an Ontario resident?

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

Hi Susan,

For you to become a resident of Ontario, it’s easy… sell your Quebec home, move to Ontario, get an Ontario Drivers Licence and Ontario Health Card.

Unless all of these items are not done, you will remain a taxable resident of Quebec.

I hope this has answered your question.

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

cindy y
cindy y

Hi?darling

My son work in USA, Is he responsible for claiming tax in Canada and United States next year?

If he reports his income to both countries, he will pay dual income tax. Can you help us? thanks!

Anyway, My friend take heritage from her mother who is not resident of Canada. Is she liable for heritage tax?

Cindy
Thanks

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

Hi Cindy, You do not provide sufficient details to allow us to provide you with an accurate response. If your son moved to the US during 2013, yes, he must file both a Canadian and US tax return. Depending on the date he moved and the residency ties he has to Canada, he may be required to file Canadian and US tax returns in the future. By heritage, do you mean inheritance? Depending upon the country of residence of her mother and the inheritance, she may be taxable in the foreign country and inn Canada. Both your son and friend… Read more »

Kurt F
Kurt F

I reside in Ontario, but have many clients in Quebec. I am a insurance broker and also have a Quebec Corp. Where do I pay taxes?

I recently moved to Ontario from Quebec.

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

Hi Kurt, If you are asking about you personally, it would depend upon when you moved to Ontario. If you moved before July 1, you would be taxable in Ontario. But, note that your clients do not belong to you and they do not determine your personal taxability; the clients belong to your corporation. Your corporation is resident in Quebec and is required to pay tax on the income from your Quebec clients. Any clients outside of Quebec require your corporation to file the provincial tax return of those clients… ie. 85% of your clients are Quebec based so 85%… Read more »

Ashley
Ashley

Hello,

If I was to sub-contract how much money should I set aside for end of year taxes? Also, what expenses am I able to claim? Fuel, meals on the road, home office etc??

Thank you

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

Hi Ashley,

Without solid numbers, a precise answer is not available.

Enter your anticipated annual income into the calculator above. It will provide you with your income tax liability; to it add 10% of your gross income to account for your required CPP contributions.

As for available deductions, it would depend upon the type of work you will be doing. Any direct work related expenses (driving/vehicle expenses, home office, etc.) are available to you, but they must be substantiated to the work and income received.

I hope this has answered your question.

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

greg m
greg m

Hi,

Is the $1,500 fee paid to tax lawyer for VDP filing individual income tax deductible? If so in what line this can be claimed and under what section is this allowed?

WA
WA

Hi,

I work and rented a room in Montreal but the family lives in Ottawa, Ontario. I have daughter (1+ year old) and wife who doesn’t work just housewife. I am working in Montreal since march 2013 and this is my second employer here.

My question is how would I file tax? How would the child benefits calculated? Should I include that I pay rent here in Montreal as well? Under what status should I file the tax Quebec resident or ontario? Later on if I have to apply for EI how would that work?

Regards,
WA

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

Hi Greg,

Sorry, no, the legal fees you incurred to file a VDP are not deductible.

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 WA,

Filing your tax return will depend upon which province you are resident within… which province issued your drivers licence, health card, etc.

For questions related to benefits and EI, you should contact Service Canada.

I hope this has answered your question.

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

margaret
margaret

If I am renting an apartment and sublet it for less than I am paying. Can I clam the difference as a loss? I am moving to a house.

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

Hi Margaret,

You can, but be ready to justify (prove) it to CRA if it is questioned.

I hope this has answered your question.

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

Anonymous
Anonymous

I am looking to lend $25K to a friend to help him expand his privately held small business. He has agreed to pay me interest of x% on this loan, but I would NOT get any shares/ownership. Would I be able to qualify my loan as an RRSP eligible investment in order to eliminate the taxation of interest income?

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

Hi Anonymous,

Small business loans are not eligible for RSP investment purposes.

If you were to register a mortgage with the small business, it would be possible, but there are fees to do so which would not make it economical for you for a loan of this size.

Investing the in the shares of the small business (corporation) is possible, but again fees would make it not economical for 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

fred
fred

?I have a regular job and work a second job at a small business. We plan to legitimize the income earned at the second job starting in 2014. Compensation will be increased to accommodate the estimated amount of tax that will be owned on this additional income. How do we determine the estimated amount of tax? For example if we are currently paid $200 for a days work how do we figure out how much more to pay per day to cover the amount that will be “lost” to taxes? The regular income of the individual varies from about $80-$100,000… Read more »

AZ
AZ

As a self contractor for almost a year now.

My question is what are the federal and provincial taxes that must be deducted from my gross income.

For example: if my income is 60,000 per year, do I deduct a provincial and federal tax percentage along with a percentage of CPP ?

Currently working out of Ontario.

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

Hi AZ,

Enter your estimated gross wages for the calendar year into the calculator above to determine your tax liability.

CPP Contributions are about 10% of your gross wages.

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 Fred, Not sure what you mean by legitimise the income from the small business… any income from any source is legitimate and must be reported on your tax return and reported by the small business for tax credit. If you are looking to calculate the gross pay based on $200/day net. First annualise the amount ($200 x 5d x 52wk = $52000) and plug numbers into the calculator above until the result in the net pay calculated equals the amount you wish ($52k). Simply work it backwards until you get the gross amount to fit the net pay amount.… Read more »

Russ G
Russ G

I transferred to Quebec from Ontario 10/2011. My wife & I took up an apt 03/2012. I missed the file date for my 2011 & when 2012 came around skipped again as 2011 is out standing, I had never missed in 40 years and always did my own. My issue was Moving cost. Where to declare residence as, I have a seasonal home in Ontario. My wife has no income, my income is 100% T4 all monthly payments have been made. I just need help on the which province as the rate is higher in QC can it be? Thanks.… Read more »

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

Hi Russ,

Moving costs have nothing to do with residency, only employment.

Which provincial drivers licence did you hold at Dec 31, 2011? This would be your province of residence for 2011, since you moved during October of that year.

For 2012, you would be a tax resident of Quebec even if you have not yet updated your drivers licence or health card.

I hope this has answered your question.

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

Tommy
Tommy

I work in Ontario but live in a rented apartment in Quebec. My family owns a cottage in Ontario, which I am named in the trust. I spend several weeks there in the summer as well as time over Christmas (including December 31). Can I use this property as my residence and file Ontario tax return?

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

Hi Tommy,

You answered your own question… you have not any ownership or residency rights to the cottage in Ontario.

To help you understand… which province issued your drivers licence? in which province did you sleep at least 183 nights?

Get an apartment in Ontario to satisfy the residency requirements.

I hope this has answered your question.

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

Russ
Russ

Thank you So 2011 12 months licence ontario determines my province for filling .. How about which year can I claim moving cost for employment
The transfer was 10/2011 my home went to storage till 03/2012 sold home 10/2011 quebec file 2012 not file 2011
Thanks
Russ
.

Jay
Jay

HI,
I am a Canadian Citizen left Canada on 1996 back to my country Syria (where I Have immigrated to Canada from). and:
– I stayed in Syria till today (18 years).
– I have no ties at all in Canada except that I hold a Canadian Passport.
– I know that Syria has no tax treaty with Canada.
– I am returning these days to Canada due to current situation in Syria.
My question is: Do I have to pay any taxes on my earning all these years in Syria?
What do I have to do as soon as I arrive in Canada?
Many Thanks
Jalal

Elias
Elias

Hello, I am making 40,000$ annually but no deductions are made from my pay check. I live in Quebec and I was wondering if that 28.53% includes all deductions including medical care, federal income taxes, employment insurance, quebec parent insurance plan, provincial taxes, quebec pension plan, etc. Thank you kindly. Happy holidays !!!

Patrick
Patrick

Can you let me know about Capital Gains Taxation on Canadian non-residents that sell their property in Ontario and make a profit? If I purchased my home for $300000 and sell it for $400000 and the gross profit is $100000. I know that I am to be taxed on 50% of that gain. What would be the amount of tax that I need to pay? Because I don’t have status, does this count as income, or is it still regarded as a Capital Gain based on your calculator above? I’m just confused between the marginal tax rate and the average… Read more »

Alison B
Alison B

I was just wondering if someone could help me out. I was on “contract” for a bit at my job, and I was paid by a cheque but no taxes were deducted. I was making $14.00 an hour for 40 hours in a week. Total of all cheques are $5887.00, how much will I be paying in taxes when I claim in 2014? I am now on payroll, and having taxes deducted. Now making $14.50 an hour for 40 hours a week. I live in Ontario, Canada.

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

Hi Russ,

Moving expenses are deductible in the year incurred unless the expense amount is higher than the income earned at the new location, then is the excess is available to be carried forward.

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 Jay,

If you have no tax relevant residential ties to Canada, you are not tax liable in Canada.

If Syria does not have a tax treaty with Canada, you are subject to double taxation by both countries under certain 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

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

Hi Elias,

No, the tax rate calculated by the calculator above only include federal and provincial income taxes, not any other payroll related deductions.

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 Patrick, Non-residents are subject to different tax rates than Canadian residents. Upon the sale, the transfer authorities would withhold an amount of tax ranging from 10% to 20%. Depending upon the nature of the investment in the property, the income could be considered would be general income or capital gain, this would be concluded by the transfer authorities. If it is capital gain, the taxable portion would be 50% of the gain. As you are a non-resident, any gain would not be eligible for the primary residence exemption. I hope this has answered your question. Regards, Storoszko & Associates… Read more »

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

Hi Alison,

You would need to estimate how much non-contract earnings you will have for 2013.

Add together the contract and non-contract earnings and enter the total into the calculator above. The tax calculated would be the total tax; you would then need to subtract the tax you estimate for your non-contract work to obtain your answer.

I hope this has answered your question.

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

Krissy
Krissy

Who’s name is it best to put on childcare tax receipt? The lower wage earner?

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

Hi Krissy,

It should be the actual payer of the childcare… so if the childcare is paid for by a non-parent, that`s the name.

If a parent pays the child care expense, both names should be on the receipt so the deduction can be utilised by the most efficient tax savings.

I hope this has answered your question.

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

Chris
Chris

I am separated from my wife. How could I update my status? We are living separately.

Col
Col

Hi,

I pay my mother to take care of my three-year old while I am at work. Can I claim this as a daycare expense and if I do will it impact my mother’s taxes?

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

Hi Chris, If your marital status has changed, you must inform the CRA of your new status and the date of the change. You can do this by using “Change my marital status” on My Account on the CRA Web site or by calling 1-800-387-1193. You may also complete and send form RC65, Marital Status Change or provide the information by sending a letter to the tax centrethat serves your area. Be sure your letter includes the date (day, month and year) of the marital status change, your name and social insurance number, along with your spouse or common-law partner’s… Read more »

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

Hi Col,

In order to claim childcare expenses your mother must provide you with receipt that includes her name and SIN number, and she must declare the income on her tax return. If her total annual income is over the basic federal personal amount of $10,527 in 2011, she may have a balance owing but it does depend on any other credits or benefits for which she may qualify.

I hope this has answered your question.

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

montreal_edm
montreal_edm

I paid the childcare expenses this year in Quebec, will I get the refund if I move to another province by the end of year?

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

Hi Montreal,

Without more details from you, only a general answer can be provided to you…

Depending on your move date, if before July 1, no refund will be available and any advance refund will be repayable; if after July 1, you may be eligible for the daycare refund.

I hope this has answered your question.

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

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