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.
If some of your income is derived from employment you may want to know the amount of payroll taxes (Canada Pension Plan and Employment Insurance premiums) that will be deducted from your pay cheque.
And if you are drawing Old Age Security and have a high level of income some or all of those benefits can be clawed back.
Of course, tax rates vary from province to province so even that is a factor you have to consider.
In addition, you may want to make an RRSP contribution to reduce your taxes but the tax savings vary depending upon your level of income.
All of this adds up to a complex calculation. MoneyPages has wrapped these complex calculations into a simple calculator. You fill in the blanks and the calculator does the rest. It is a great tool for basic tax planning.
The MoneyPages Tax Estimator is designed to estimate taxes for a single individual with no dependents. For more advanced tax calculations we suggest www.taxtips.ca.