Updated Checked by the Tax-Services.ca editorial team How we check
To calculate my taxes on $60,000 of employment income in Ontario, the 2026 figures give $8,320.50 of federal and Ontario income tax. That’s an average rate of 13.9 per cent, and CPP and EI come on top.
What steps do I follow to calculate my taxes?
The sequence never changes. You add up your income, subtract deductions to reach taxable income, apply the federal brackets and your province’s brackets, then subtract credits. What’s left is your income tax.
Brackets trip people up. Picture a raise that lifts you past $58,523: the dollars above that line get 20.5 per cent federally, while the rest stay at 14. A raise can’t leave you with less pay. Say Jess in Regina has $60,000 of taxable income. The first $58,523 is taxed at 14 per cent and only the last $1,477 at 20.5 per cent. That’s $8,193.22 plus $302.79, or about $8,496 before credits, and credits then bring it down.
You don’t need to do this by hand. The income tax calculator runs the full sequence for employment, self-employment, dividends and capital gains, and shows the federal and provincial share separately.
What are the 2026 federal brackets?
These are the federal rates for 2026 as we hold them, from CRA data.
| Taxable income | Federal rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
Ontario has its own set. The rate is 5.05% up to $53,891, then 9.15% to $107,785, 11.16% to $150,000, 12.16% to $220,000 and 13.16% above that. Ontario also adds a surtax at higher tax levels and a health premium, so the totals aren’t a simple sum of the two columns. Every other province and territory sets its own brackets too.
What does $60,000 actually look like?
Here is the calculator’s result for $60,000 of employment income, Ontario resident, no deductions.
| Item | Amount |
|---|---|
| Taxable income | $59,435 |
| Federal tax | $5,338.30 |
| Ontario tax | $2,982.20 |
| Total income tax | $8,320.50 |
| CPP and EI | $4,339.75 |
| Left after tax and contributions | $47,339.75 |
Notice taxable income is $565 lower than pay. Credits for the basic personal amount, employment, CPP and EI then reduce the tax itself. If you’d rather see pay period by pay period, the take-home pay calculator does that job.
Now compare two other incomes. At $45,000 the total is $5,243.01, or 11.7 per cent. At $100,000 it’s $20,024.35, or 20.0 per cent. Pay rises a bit over twofold from $45,000 to $100,000. Tax rises almost fourfold.
Which mistakes throw the total off?
Forgetting income is the big one. Interest, a side job, rental income and tips are all taxable. Missing credits is next, and the calculator only knows the ones it asks about, so medical costs, tuition or the disability amount need adding through the credit field.
Two rates get mixed up. What you pay overall, divided by income, is the average. What the next dollar costs is the marginal rate, and the marginal tax rate calculator shows it. Near $200,000 in Ontario, its figure looks unusually high because of the health premium step, so treat that reading with care.
And what about the benefits you’d receive? These aren’t included. The result is your income tax and payroll contributions, not your full financial picture.
Can you check the result against your paycheque?
Roughly, yes. Your annual figure of $8,320.50 plus $4,339.75 of CPP and EI is $12,660.25, which leaves $47,339.75. Spread over 26 pay periods that’s about $1,820.76 a period of take-home, a ballpark only, because employers withhold by their own tables and your actual stub will differ a little. If it’s way off, look for a missing credit or a second job.
When is the tax due?
For the 2025 return, most people had to file by April 30, 2026. Anyone with business income had until June 15, 2026 to file, but any balance owing was still due April 30. The 2026 dates weren’t published when we checked, so look at the CRA’s due dates page before you rely on these.
Once you know the total, compare it with the tax already withheld from your pay. The tax refund calculator does that comparison.
How we checked the figures
Rates, brackets, credits and CPP and EI amounts for 2026 come from the Canada Revenue Agency‘s published tax tables and payroll guides, and the Ontario government’s figures. Filing dates come from the CRA’s due dates page for the 2025 return.
Frequently asked questions
How do I calculate my taxes in Canada?
Add your income, subtract deductions, apply federal and provincial brackets, then subtract credits. A calculator does all four steps.
Do higher brackets tax all my income at the higher rate?
No. Each rate applies only to the slice of income inside that bracket.
What is the difference between average and marginal tax rate?
Average is total tax divided by income. Marginal is the rate on your next dollar.
Does the calculator include CPP and EI?
It shows them separately from income tax. On $60,000 in Ontario they come to $4,339.75.
When was the 2025 return due?
April 30, 2026 for most people, June 15, 2026 if you had business income. Any balance owing was still due April 30.
- 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