Updated Checked by the Tax-Services.ca editorial team How we check
To calculate your tax refund, take the income tax your employer already sent to the CRA and take away the tax you truly owe for the year. On $60,000 of pay in Ontario with $9,000 withheld, the answer is a refund of $679.50.
The tool below does that sum for any province. Type your pay and the tax withheld, and it shows the refund or the balance owing.
How do you calculate a tax refund by hand?
There are three steps. Work out your taxable income (pay plus other income, minus deductions). Apply the federal and provincial rates, then take off the credits you qualify for. That gives your tax for the year. Now compare it with the tax already withheld: if you paid more, the difference comes back to you, and if you paid less, you’ll owe it, usually by the same deadline as the return itself.
Your pay stubs and the year-end slip from your employer show what was withheld. Look for the T4, box 22. The CRA won’t guess it for you, and neither will we.
Here’s the sum for Lena in Ottawa. Her pay is $60,000 and her T4 shows $9,000 withheld. The calculator puts her tax for the year at $8,320.50, since $9,000 less the $679.50 refund is $8,320.50. She paid more than she owed, so the CRA owes her the difference.
What do real refunds look like?
These figures come from the tax refund calculator with Ontario selected and 2026 tax data. Only pay, tax withheld and the deduction shown are entered, so any credit beyond the basics would move the result.
| Pay | Tax withheld | Deduction | Result |
|---|---|---|---|
| $60,000 | $9,000 | none | Refund $679.50 |
| $60,000 | $9,000 | $5,000 | Refund $1,896.28 |
| $45,000 | $4,000 | none | Owing $1,243.01 |
| $90,000 | $17,000 | none | Owing $33.55 |
The third row is the one that surprises people. Four thousand dollars sounds like plenty to have paid in, yet it falls well short of the real tax on $45,000. The only way to know is to run the sum.
Why did a $5,000 deduction add $1,216?
Because a deduction comes off your income before tax is worked out, so it saves tax at your top rate. In the second row the taxable income drops from $59,435 to $54,435, and the refund rises by $1,216.78. That’s roughly 24 cents back for every dollar deducted at this pay level.
An RRSP contribution is the usual example. Try a figure in the RRSP calculator and put the same amount in the Deductions box to see the effect on your own refund.
Province matters too. The first row in Alberta gives a refund of $1,030.40 instead of $679.50, since the provincial tax is lower at that pay.
What does a refund calculator leave out?
Plenty, so treat the result as a rough floor, not a promise. It doesn’t know your whole life.
- Credits beyond the basics, such as tuition, medical costs or donations, unless you add them under other credit amounts.
- Benefits paid separately, like the GST/HST credit or the Canada child benefit, which the CRA works out from your return.
- Tax owing from earlier years or other debts. The CRA can keep a refund to cover amounts owing, certain outstanding federal, provincial or territorial debts, and unpaid GST/HST returns from a sole proprietorship or partnership.
The CRA’s tax refunds page also says it may keep a refund of $2 or less, so a loonie or two of refund may never reach you. To spot claims you haven’t made yet, the tax credits calculator covers the federal ones. For the tax itself on your whole income, use the income tax calculator.
When does the money arrive?
The CRA says to wait 12 weeks after filing before you contact it about a refund. You can watch progress in your CRA account, or call the refund line. And it won’t start until you’ve filed, so a late return means a late refund. Direct deposit is the quickest way to get paid, so set it up before you file.
The balance owing is due on the same date as the return. Last year’s date, for the 2025 return, was April 30, 2026. The 2026 date isn’t printed on a CRA page yet, so check its filing dates page before you plan around it.
Wondering what your next dollar of income costs you in tax? The marginal tax rate calculator shows it.
Sources, and how we checked them
Rates, brackets and credit amounts for 2026 were taken from CRA and provincial publications, as recorded in our data files on 29 September 2026. Refund rules and dates come from CRA web pages. This isn’t a government service and doesn’t speak for one.
Frequently asked questions
How do I calculate my tax refund?
Take the tax already withheld and deduct your real tax for the year. If the withheld amount is larger, the difference is your refund.
Can I get a refund if I earned very little?
Only if tax was withheld from your pay. If nothing was withheld and you owe no tax, there is nothing to refund.
Why is my refund smaller than the estimate?
The CRA may keep part of it for debts such as student loans, EI overpayments or tax owing. The CRA does not send refunds of $2 or less.
How long does a refund take?
The CRA asks you to wait 12 weeks after filing before you contact it. You can check progress in your CRA account.
Does a deduction raise my refund?
Yes. It lowers taxable income, so a $5,000 deduction adds about $1,217 to the refund on $60,000 of pay in Ontario.
- How to file your tax return in Canada: steps and dates
What to gather, when your return is due and how to file in Canada, from the first slip to the notice of assessment that closes the year