Tax Calculator
Calculate your income tax instantly for Canada and USA. Get a detailed breakdown of federal tax, provincial/state tax, CPP/EI, and deductions.
Tax Calculator
Select Country
How to Use the Tax Calculator
Select Your Country
Choose between Canada or USA. The calculator adjusts tax brackets, deductions, and pension contributions accordingly.
Enter Your Gross Income
Input your total income before taxes. This includes salary, wages, self-employment income, and other sources.
Select Province/State (Canada)
Choose your province of residence. Each province has different tax rates and credits that affect your total tax.
Add Deductions (Optional)
Include RRSP contributions, tuition fees, medical expenses, or other deductions that reduce your taxable income.
Review Your Tax Summary
See your net income, total tax, effective rate, and a detailed breakdown of all tax components.
Frequently Asked Questions
What is an RRSP contribution?
RRSP (Registered Retirement Savings Plan) contributions reduce your taxable income for the year. You get a tax deduction equal to your contribution amount, which lowers your overall tax bill. The money grows tax-free until you withdraw it.
What's the difference between marginal and effective tax rate?
Marginal tax rate is the tax rate on your next dollar of income. Effective tax rate is your total tax divided by total income. For example, if you earn $50,000 and pay $10,000 in tax, your effective rate is 20%, but your marginal rate might be 30%.
What is CPP and EI?
CPP (Canada Pension Plan) is mandatory retirement savings for employees, with a 2026 rate of 5.95%. EI (Employment Insurance) provides income support if you lose your job, with a 2026 rate of 1.63%. Both are deducted from your paycheck.
What deductions should I include?
Include RRSP contributions, tuition fees, medical expenses, moving expenses, and other eligible deductions. These reduce your taxable income. Note: Some deductions may require documentation for tax filing.
Is this calculator accurate for tax planning?
This calculator provides estimates based on 2026 tax brackets. For official tax planning, consult a tax accountant or use CRA/IRS software. This tool is for educational purposes and quick estimates.
Tax-Saving Tips
Maximize RRSP Contributions
Contribute to your RRSP to reduce taxable income. You can carry forward unused room to future years.
Track Deductible Expenses
Keep receipts for tuition, medical expenses, childcare, and professional fees. These reduce your tax bill.
Split Income with Spouse
Through spousal RRSPs, you can split retirement savings and reduce combined household taxes.
Use Tax-Free Accounts
TFSA and RRSP growth is tax-free, making them powerful tools for long-term wealth building.
File on Time
File your taxes by the deadline to avoid penalties. You may also be eligible for refunds and benefits.
Claim All Credits
Don't miss out on tax credits like basic personal amount, student loan interest, and other eligible claims.