Income Tax Calculator 2025
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Tell me your annual income and province. I'll calculate your federal tax, provincial tax, CPP, EI, and take-home pay.
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How Canadian Income Tax Works
Canada uses a progressive tax system where higher income is taxed at higher rates. You pay federal tax plus provincial/territorial tax based on where you live on December 31st of the tax year.
Basic Personal Amount (BPA)
The Basic Personal Amount is a non-refundable tax credit that every Canadian can claim. For 2025, the federal BPA is $16,129. Provincial BPAs vary—Ontario's BPA is $12,747.
CPP and EI
In addition to income tax, most employees pay Canada Pension Plan (CPP) contributions (5.95% up to $4,034.1 max) and Employment Insurance (EI) premiums (1.66% up to $1,077.48 max).
Frequently Asked Questions
How is Canadian income tax calculated?
Canadian income tax is calculated using a progressive tax system. You pay federal tax plus provincial tax based on your province of residence on December 31st. Tax brackets increase as your income rises, but only the income within each bracket is taxed at that rate.
What is the Basic Personal Amount in Canada for 2025?
The federal Basic Personal Amount (BPA) for 2025 is $16,129. This is the amount of income you can earn before paying federal income tax. Provincial BPAs vary by province.
What is the difference between marginal and effective tax rate?
Your marginal tax rate is the rate you pay on your last dollar of income. Your effective (or average) tax rate is your total tax divided by your total income. The effective rate is always lower than the marginal rate due to progressive taxation.
Do I have to pay both federal and provincial tax?
Yes, Canadians pay both federal income tax and provincial/territorial income tax. The combined rate varies by province, with Quebec having the highest combined rates and Alberta having among the lowest.
Disclaimer: This calculator provides estimates for general guidance only. Your actual tax situation may vary based on deductions, credits, and other factors. Consult a tax professional for personalized advice.