Updated Checked by the Tax-Services.ca editorial team How we check
Total income is the sum of everything you report earning in the year, before any deduction. On the Canadian T1 return it sits on line 15000, at the end of Step 2. It is not the number your tax is worked out on, and mixing the two up is the most common slip.
What counts toward total income?
Nearly everything that came in. The CRA’s Step 2 covers employment income (lines 10100 and 10400), pensions and benefits, investment income, rental income, capital gains, self-employment income and social assistance payments. It also says that income with no information slip still has to be reported.
So a T4 isn’t the whole picture. Interest from a small account, a few weekend jobs paid in cash and net rent all belong on the return, slip or no slip. The CRA’s page on line 12100, interest and other investment income says to report interest paid or credited to you even when no slip arrives, and notes that you may not get a T5 for amounts under $50. Ten bucks of bank interest still counts.
Capital gains enter at their taxable portion, not the full gain. As far as we can confirm, the inclusion rate for 2026 is 50%. The increase to two-thirds was cancelled in the Prime Minister’s release of 21 March 2025, but we couldn’t find a CRA page that prints the 50% figure itself, so check it when you file.
How does total income differ from net and taxable income?
Your return moves through three numbers, and each one is smaller than the last.
| Step | Line | What it is |
|---|---|---|
| Total income | 15000 | All income you report |
| Net income | 23600 | Line 15000 minus deductions on lines 20700 to 23500 |
| Taxable income | 26000 | Net income minus further deductions and loss carryforwards |
Deductions such as RRSP contributions, child care costs and support payments come off between total and net. Tax rates apply to the last figure, taxable income.
Net income has a second job. The CRA uses it to work out non-refundable credits and to test eligibility for the Canada child benefit and the GST/HST credit. A deduction therefore helps twice, once on the tax and again on the benefits.
What does total income look like in a real year?
Take Sam in Ontario, with $60,000 of employment income, $500 of bank interest and $3,000 of net rental income. Total income on line 15000 is $63,500.
Now add a $4,000 RRSP contribution and, to keep it clean, no other deductions. Net income falls to $59,500. Using our 2026 tables and the basic personal amounts only, combined federal and Ontario tax on $63,500 is about $10,455, and on $59,500 it is $9,269. The contribution saved $1,186, which is $4,000 at the 29.65% rate that applies at that level.
Want your own numbers? Use the income tax calculator. The marginal tax rate calculator shows the rate on the next dollar, and the RRSP calculator is handy when you’re deciding how much to put in.
Where does total income trip people up?
Gross pay on the last stub is not always what ends up on line 15000. Enter employment income from your T4 slip, and compare it with your own records if the two look far apart. A raise in December, a bonus paid in January or a taxable benefit from your employer can make the stub and the slip disagree.
Check the slip against your own records before you file, because a wrong figure here carries all the way down the return.
Another trap: a pay stub says nothing about your other income. If you also earn from a side business, the self-employed tax calculator gives a rough idea of the tax, but remember it leaves out EI and treats deductions as lowering income tax only.
In the income tax calculator you’ll also see taxable income come out below your employment income. That’s expected. Part of your CPP contributions, about 1% of pay above $3,500, is deducted before tax is worked out.
Lastly, if your deductions are bigger than your total income, you end up with a net loss, and it doesn’t turn into a refund. The CRA says a loss may sometimes be used in other years, so keep the working in case you need it at tax time.
Where we got these figures
Line descriptions come from the Canada Revenue Agency‘s 2025 federal income tax and benefit guide (Steps 2 to 4) and its page on line 23600. Tax amounts come from our calculators, based on the 2026 federal and Ontario tables. This is an independent information site, not connected to any government body.
Frequently asked questions
What line is total income on a Canadian tax return?
Line 15000, at the end of Step 2 of the T1 return.
Is total income the same as taxable income?
No. Deductions take you from total income to net income (line 23600), and more deductions lead to taxable income (line 26000).
Do I report income with no slip?
Yes. The CRA says income not reported on an information slip must still go on your return.
Why does net income matter?
The CRA uses it for non-refundable credits and to test eligibility for benefits like the Canada child benefit and the GST/HST credit.
What if my net income is negative?
Enter zero on line 23600. The CRA says you may have a non-capital loss you can carry back, so keep the working.
- 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