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Income Tax Overview

The one thing we can be sure of is that we will all have to pay income tax but estimating what we will have to pay is complex. It depends on the tax rates for the current year, your total income, your sources of income, your age and so on.

For a quick snapshot of your tax situation, access our most recent tax estimator here:

2021 Income Tax Estimator

Here's some of the information you can glean from your calculations

  • If some of your income is derived from employment you can determine the amount of payroll taxes (Canada Pension Plan and Employment Insurance premiums) that will be deducted from your pay cheque.
  • If you are drawing Old Age Security and have a high level of income, some or all of those benefits can be clawed back.
  • You can check the impact that making an RRSP contribution has on your taxes payable.
  • Various sources of income can be taxed at different rates. For example, you can also use the calculator to compare your taxes if you switch some of your income from interest to eligible dividends, and so on.
  • Your province or territory of residence has an impact on the taxes you pay. It's quick and easy to compare the tax liability among these various jurisdictions.

The MoneyPages tax calculator is designed to estimate taxes for indviduals or couples and should be used for general estimates only. For more advanced tax calculations we suggest www.taxtips.ca or consult with you personal tax professional.