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Try this before you trust any online tax calculator. Enter $85,000 of employment income in Ontario for 2026, and the combined federal and Ontario tax should land near $15,551. If a tool gives you something far from that, one of its inputs is off. The test works on any tax calculator, whether it comes from a firm such as EY, a software company or this site.
What does a good tax calculator ask you?
Five things, at least. Skip one and you only get half an answer.
| Input | Why it changes the answer |
|---|---|
| Province on December 31 | Each province has its own brackets and credits |
| Employment income | Sets taxable income, CPP and EI |
| Other taxable income | Rent, interest and side work are taxed at your top rate |
| Deductions such as RRSP | Lower taxable income before tax is worked out |
| Tax already withheld | Decides whether you get a refund or owe a balance |
The province matters most. A tool that never asks for it can’t be right for you, since the provincial share in our test case is $5,324.46 of the total.
How do you run the test?
Put $85,000 of employment income for Ontario into the income tax calculator. You should see taxable income of $83,873, federal tax of $10,226.60, Ontario tax of $5,324.46 and total income tax of $15,551.05. That’s 18.3% of income, with CPP and EI on top and separate.
Now say your employer withheld $14,000 over the year. The tax refund calculator then shows a balance owing of $1,551.05, due on 30 April. A refund is tax paid minus tax owed. If your employer withholds less than the real figure, you won’t notice during the year, and the difference turns up as a bill when you file.
What does an RRSP contribution do to the estimate?
Add a $10,000 contribution to the same case and tax drops from $15,551 to $12,586. You save $2,965, or 29.6% of the amount you put in, so the contribution really costs $7,035.
In Quebec, on the same income, the saving is $3,612 on $10,000. That gap comes from each province’s rates, and it’s one more reason to look at the province field first.
How much can you put in? Each year adds room equal to 18% of the prior year’s earnings, so $15,300 here, capped at $33,810 for 2026, and unused room carries forward. The RRSP calculator lets you test other amounts. Withdrawals are taxed as income later, so unless your rate drops in retirement, the deduction is mostly a deferral.
Average rate or marginal rate?
People mix these up all the time. The average rate spreads your whole bill over all your income. The marginal rate is what the next dollar costs you. On $85,000 in Ontario the average is 18.3%, but the next dollar of work income is taxed at 29.6%. When you’re weighing a raise, an RRSP deposit or side income, the marginal tax rate calculator is the one to open.
Why do two tax calculators disagree?
- Some show tax only, others subtract CPP and EI as well, so don’t compare figures from before and after contributions.
- Credits you don’t list aren’t counted. Medical costs, tuition and donations can lower the result.
- Estimates leave out benefits and refundable credits.
- Your employer uses payroll tables, which differ from your final return, so the balance at filing can differ from the estimate.
- A few dollars of difference is rounding and how small credits are treated. Hundreds of dollars points to a wrong input.
We couldn’t confirm the features of any named firm’s tool. To judge one, run the test case above and compare the total, the taxable income and the RRSP saving.
Where the numbers come from
Rates, brackets and contribution limits for 2026 come from the Canada Revenue Agency’s published rate tables and its RRSP limit page. We ran the examples through this site’s calculators in September 2026.
Frequently asked questions
How much tax is payable on $85,000 in Ontario?
About $15,551 in federal and Ontario income tax for 2026, or 18.3% of income. CPP and EI are extra.
Why do two tax calculators give different answers?
They may use different provinces, deductions or credits, or one may include CPP and EI. Small gaps come from rounding.
How much does a $10,000 RRSP contribution save?
In Ontario at $85,000 of income it saves $2,965. In Quebec it saves $3,612.
What's my RRSP deduction limit?
It grows by 18% of the prior year's earnings, capped at $33,810 for 2026, plus unused room carried forward and less any pension adjustment.
When is a balance owing due?
On 30 April, even if you file later.
All rrsp and retirement calculators
- RRSP, TFSA, FHSA and retirement income in Canada
How the RRSP, TFSA and FHSA differ, the 2026 limits, what happens when you withdraw, and where CPP and OAS fit into your retirement income
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.