/canadian-income-tax-calculator

Calculate provincial and federal income taxes payable based on income. Useful for financial planning, particularly in Google Sheets.

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Canadian Income Tax Calculator, Formulas

Calculate provincial and federal income taxes payable based on income. Useful for financial planning, particularly in Google Sheets.

Tax Primer

Full-time employees have a few forms of deductions on their pay:

  • Federal Income Tax
  • Provincial Income Tax
  • Provincial Income Surtax
  • Canada Pension Plan
  • Employment Insurance

Each calculation is unique and generally complex, and all are included in our formula.

Usage

Generally, the primary API is through the INCOMETAXCAN2021(income, type), where:

  • income: Total annual income.
  • type: Either "total_tax", "total_deductions", "net_pay", "total_provincial_tax", "provincial_tax", "provincial_surtax", "federal_tax", "tax_rate", "canada_pension_plan", "ei_deduction", "net_pay_rate"

For explanation of what is included in each particular type see below.

Examples

// Find total income tax payable (provincial income tax, federal income tax) for income of $50,000
INCOMETAXCAN2021(50000, "total_tax");

// Find total deductions (provincial, federal, CPP and EI) for income of $50,000
INCOMETAXCAN2021(50000, "total_deductions");

// Find net pay for income of $80,000
INCOMETAXCAN2021(80000, "net_pay");

Types

  • total_tax: All provincial income taxes and federal income taxes.
  • total_deductions: Canada Pension Plan deductions and Employment Insurance deductions.
  • net_pay: Income minus total tax (total_tax) minus total deductions (total_deductions).
  • total_provincial_tax: All provincial taxes, including the provincial surtax.
  • provincial_tax: Only provincial income tax, excluding the provincial surtax.
  • provincial_surtax: Only the provincial surtax, excluding the provincial income tax.
  • federal_tax: Federal income taxes.
  • tax_rate: Federal and provincial income taxes (incl. provincial surtax) divided by income.
  • canada_pension_plan: Canada Pension Plan deductions.
  • ei_deduction: Employment Insurance Deductions
  • net_pay_rate: Net pay divided by income.