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 tax calculators here:
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.
If you are drawing Old Age Security and have a high level of income some or all of those benefits can be clawed back. And of course tax rates vary from province to province so even that is a factor you must also consider.
You can check the impact that making an RRSP contribution has on your taxes payable. In addition, different sources of income are taxed differently. 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. It is a great tool for basic tax planning.
The MoneyPages tax calculator is designed to estimate taxes for indviduals or couples with no dependents 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.