Income tax calculator for Canada: estimate your 2026 tax and refund

How does this income tax calculator for Canada work?

The calculator follows the same order as the T1 return. It starts from your income, subtracts deductions to reach taxable income (line 26000), applies the 2026 federal and provincial brackets, then subtracts non-refundable credits. What remains is your estimated income tax for the year.

To turn that into a tax refund estimate, the calculator compares your estimated tax with the income tax deducted at source (box 22 of each T4 slip) plus any instalments you paid. A positive difference is a refund; a negative one is a balance owing due April 30, 2027.

The federal figures come from the CRA's 2026 rate table and the January 2026 T4127 payroll formulas. The provincial step uses your province's 2026 brackets and basic personal amount, and the calculator gives a result only when every 2026 figure for that province is loaded. If it shows a notice that your province's figures are not in the calculator yet, follow the federal steps on this page and use the full 2026 brackets on our Ontario, Alberta, BC or Quebec pages, or the lowest and top rate for every province on our federal and provincial brackets page.

What inputs do you need for a tax return estimate?

Gather your slips before you start; a tax return estimator is only as good as the numbers you enter. Everything below is printed on documents you receive by the end of February 2027 or can see in CRA My Account.

Federal and provincial steps in the calculation

The calculator runs two separate calculations and adds them, because every province except Quebec collects its tax on Form 428 inside the federal return.

1. Federal tax on taxable income using the 2026 bands: 14% to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482 and 33% above.
2. Federal credits at 14%: the basic personal amount of $16,452 (gradually reduced to $14,829 between $181,440 and $258,482 of net income), the Canada employment amount of $1,501 if you have employment income, and the base CPP and EI contributions.
3. Provincial tax using your province's brackets, minus provincial credits at the province's lowest rate.
4. Provincial extras where they apply, such as the Ontario surtax and Ontario Health Premium.
5. Total tax minus tax paid gives the refund or balance owing.

Quebec residents need a different path: federal tax is reduced by the 16.5% Quebec abatement and provincial tax is filed with Revenu Québec on its own return. See our Quebec tax brackets page for those rates.

How much tax will I pay in Canada? Example results

The table shows federal results for three employees outside Quebec in 2026, each with only employment income, the basic personal amount and the Canada employment amount. CPP and EI are shown as payroll deductions; the credits for them would lower federal tax a little further.

The $200,000 earner's basic personal amount is $16,061 rather than $16,452, because the amount starts to shrink once net income passes $181,440. Provincial tax would be added to each row using your province's own brackets and credits.

These are the 2026 figures. If you are planning for next year, the 2027 brackets, basic personal amount and CPP earnings limit are not published yet; the CRA's indexed 2027 figures are expected in November 2026. See 2027 tax brackets for what is known so far.

Does the tax refund calculator include CPP and EI?

Yes, for employees. CPP and EI are not income tax, but they come off the same pay cheque and they create credits and a deduction on your return, so the calculator estimates them.

• CPP: 5.95% of employment earnings between $3,500 and $74,600, up to $4,230.45 for 2026.
• CPP2: 4% of earnings between $74,600 and $85,000, up to $416.
• EI: 1.63% of insurable earnings up to $68,900, up to $1,123.07.

Self-employed people pay both the employee and employer shares of CPP (11.9% up to a maximum of $8,460.90 for 2026, plus 8% CPP2) and usually no EI. For that situation use the self-employed tax calculator, which works from T2125 net income.

How accurate is a tax estimate?

An estimate is usually close for someone with employment income and a few common deductions. It can drift when your return includes items a short form cannot capture.

• Credits the calculator does not ask about, such as tuition, medical expenses, donations, the disability amount, the spouse or common-law partner amount, or amounts transferred from a spouse.
• Capital gains, eligible dividends and the dividend tax credit, which use their own gross-up and credit rules.
• Social benefits repayment of EI or OAS at higher incomes.
• Provincial credits and reductions for low income, which differ by province.

Use the result as a planning number, for example to decide on an RRSP contribution before March 1, 2027. The figure that counts is the one on your notice of assessment after you file.