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A tax estimator gives you a working figure for the year’s income tax before you file. On $70,000 of employment income in Ontario, our 2026 numbers put federal and Ontario income tax at $11,134, or about 15.9% of that pay. Payroll deductions for CPP and EI come on top, at $5,080. Change the income, and the answer moves with it.
How does a tax estimator get to its number?
It does the same steps your return does, only faster. It adds up income, takes off deductions, runs the result through the federal brackets, then through the provincial ones, and subtracts the basic credits everybody gets. Our income tax calculator also counts the credits for CPP, EI and the Canada employment amount.
The federal brackets apply across the country. Here are the 2026 steps the engine uses.
| 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% |
Each rate applies only to the slice inside its step. Someone earning $70,000 doesn’t pay 20.5% on all of it. Only the part above $58,523 is taxed at that rate. That’s how brackets work. A raise can’t push you into paying more than you earned.
What does the estimate look like at different incomes?
Here are results from the engine for three Ontario incomes, all employment pay with no deductions, and one Alberta comparison.
| Employment income | Income tax | CPP and EI | Left over | Average rate |
|---|---|---|---|---|
| $40,000 (Ontario) | $4,363 | $2,824 | $32,814 | 10.9% |
| $70,000 (Ontario) | $11,134 | $5,080 | $53,786 | 15.9% |
| $70,000 (Alberta) | $10,813 | $5,080 | $54,107 | 15.4% |
| $120,000 (Ontario) | $26,888 | $5,770 | $87,343 | 22.4% |
The gap between Ontario and Alberta at $70,000 is $321. We’re reporting what the tool shows, and we haven’t tested why it’s that size, so don’t lean on it as a rule.
How much does a deduction change the estimate?
This is where an estimator is more useful than a bracket chart. Put $5,000 in the deductions box for the same Ontario worker on $70,000. Tax falls from $11,134 to $9,651, so the deduction saves about $1,482. That’s about 30 cents back on each dollar. Not bad.
Try it before you contribute to anything. The marginal tax rate calculator shows what the next dollar is taxed at, and that’s the number that decides what a deduction is worth. For credits, which work differently, use the tax credits calculator. It covers federal credits only, so provincial ones need a separate check.
What does a tax estimator leave out?
Plenty. Our tool skips benefits, refundable credits and most one-off claims, which means that a return with big medical bills or a large tuition claim will look different from the estimate by a margin we can’t predict from here. It uses the basic personal amount and the standard employment credits, not your medical bills, donations, tuition or childcare.
Capital gains use the 50% inclusion rate in our engine. The rise to two-thirds that was proposed was cancelled in the Prime Minister’s release of 21 March 2025. The 2026 rate itself isn’t stated on a CRA page we could find, so treat 50% as our working assumption.
If you’re self-employed, the self-employed tax calculator is the better start. Be careful there: its deductions lower income tax but not CPP, and it leaves out EI. It’s a rough guide, not a filing.
Should you use it for a refund or a bill?
An estimate of tax owed isn’t a refund estimate. A refund is tax already withheld minus tax owed, so you need your pay stub totals or your T4 to finish the sum. The tax refund calculator asks for that.
Ready to file the real thing? The CRA lists certified tax software, a free service called SimpleFile, free clinics, paid preparers and paper. The 2025 return was due on 30 April 2026, or 15 June 2026 if you or your spouse or partner were self-employed. The 2026 return dates haven’t been published, so check the CRA page in the new year.
Where the numbers come from
Federal rates and amounts come from Canada Revenue Agency pages for 2026, read in September 2026. Provincial tax uses the published provincial schedules built into the calculators. Payroll figures for CPP and EI are the 2026 CRA maximums. We have no link with the CRA, and an estimate never replaces the return itself.
Frequently asked questions
How accurate is a tax estimator?
It's close for simple employment income. It leaves out benefits, refundable credits and claims like medical costs, so your filed return can differ.
How much tax is there on $70,000 in Ontario?
Our engine gives $11,134 in federal and Ontario income tax, plus $5,080 of CPP and EI, leaving $53,786.
Do I pay 20.5% on all of $70,000?
No. The federal 20.5% applies only to the part of your taxable income above $58,523.
Is an estimate the same as a refund?
No. A refund is the tax withheld minus the tax owed, so you need your T4 totals to work it out.
Are the 2026 filing dates out yet?
We couldn't find them. For the 2025 return, the deadline was 30 April 2026, or 15 June 2026 for self-employed people.
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill
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.