Income Tax Calculator Canada 2025
Calculate your federal and provincial income tax, CPP/EI deductions, and take-home pay. Compare tax across all 13 provinces and territories.
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How to Use This Calculator
Tab "Employment Income"
Enter your annual salary and select your province or territory. The calculator shows federal tax, provincial tax, CPP/EI deductions, and your take-home pay. Under "More options," add an RRSP deduction to see how contributions reduce your tax bill, and other deductions like union dues or childcare expenses.
Tab "Self-Employed"
Enter your gross business income and business expenses. The calculator computes net business income and applies both employee and employer CPP portions (2x). Self-employed EI is optional and not included. Add an RRSP deduction under "More options" to reduce your taxable income further.
Tab "Compare Provinces"
Enter a single income amount and see the tax breakdown for all 13 provinces and territories side by side. The table ranks from lowest to highest total tax, showing federal tax, provincial tax, total deductions, take-home pay, and effective tax rate for each jurisdiction.
The Formulas
$0 - $57,375: 14.5% (blended Jan-Jun 15% + Jul-Dec 14%)
$57,375 - $114,750: 20.5%
$114,750 - $158,468: 26%
$158,468 - $220,000: 29%
$220,000+: 33%
Federal tax = Gross tax - BPA credit
BPA credit = $16,129 x 14.5% = $2,339
CPP 2025:
CPP1 = 5.95% x (min(income, $71,300) - $3,500), max $4,034
CPP2 = 4% x (min(income, $81,200) - $71,300), max $396
Self-employed: double both amounts
EI 2025:
EI = 1.64% x min(income, $65,700), max $1,077
Quebec differences:
QPP replaces CPP: 6.4% employee rate
QPIP replaces part of EI: 0.494% employee rate
Take-home pay:
Take-home = Gross income - Federal tax - Provincial tax - CPP - EI
All rates are for the 2025 calendar year. The first federal bracket uses a blended 14.5% rate because the rate changed mid-year from 15% to 14%. Provincial rates vary significantly โ use the Compare Provinces tab to see the full picture.
Example
Sarah โ Marketing Manager in Ontario, Salary $85,000
No RRSP deduction. Single, no dependents. Standard employment income.
Sarah keeps about 74.9% of her gross salary. If she contributes $10,000 to her RRSP, her taxable income drops to $75,000 and she saves approximately $2,960 in combined federal and provincial tax โ an immediate 29.6% return on her RRSP contribution.
2025 Federal Tax Rates
| Bracket | Rate | Tax on Bracket |
|---|---|---|
| $0 - $57,375 | 14.5% (blended) | $8,319 |
| $57,375 - $114,750 | 20.5% | $11,762 |
| $114,750 - $158,468 | 26% | $11,367 |
| $158,468 - $220,000 | 29% | $17,844 |
| Over $220,000 | 33% | varies |
| Basic Personal Amount | $16,129 | -$2,339 credit |
| CPP1 max (employee) | 5.95% | $4,034 |
| CPP2 max (employee) | 4% | $396 |
| EI max (employee) | 1.64% | $1,077 |