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A tax refund estimator works out one thing: the income tax you paid during the year minus the tax you owe for it. If you earned $60,000 in Ontario and your employer withheld $9,000, the estimate is a refund of $679.50. If only $6,000 was withheld, you owe $2,320.50 instead.
How does a tax refund estimator get its number?
There’s no mystery. It takes your income, subtracts deductions, applies the federal and provincial tax steps, subtracts your credits, and compares the result with what was already taken off your pay. Whatever’s left is the refund or the balance owing.
Tax software does the same thing, and many programs show a running refund figure as you type. TurboTax is one example. Those numbers move every time you add a slip, which is why the first figure you see is rarely the last one.
The tax refund calculator on this site does the same sum up front, before you open any software. You need three things: your income, the tax withheld (box 22 on a T4) and any deductions.
What changes the refund most?
Withholding and deductions. We ran the same $60,000 Ontario salary through the calculator four ways, and the tax for the year is $8,320.50 unless something changes your income.
| Scenario | Tax for the year | Result |
|---|---|---|
| $9,000 withheld | $8,320.50 | Refund of $679.50 |
| $6,000 withheld | $8,320.50 | Owe $2,320.50 |
| $9,000 withheld, $5,000 deduction | $7,103.72 | Refund of $1,896.28 |
| $9,000 withheld, $5,000 extra income | $9,803.00 | Owe $803.00 |
See how a $5,000 deduction adds $1,216.78 to the refund. A RRSP contribution is the usual example, and the RRSP calculator shows what that money does in the long run. An extra $5,000 of side income has the opposite effect, and nothing was withheld on it.
Is a big refund good news?
Not really. A large refund means you lent the government money interest free for a year. A big bill means too little was withheld. The best outcome for most people is a result near zero, and that’s how the $8,320 withholding example ends: a balance of fifty cents.
If you always get a large refund, ask your payroll department what they need from you to withhold less. The tax credits calculator shows how much federal tax a credit can save, and it’s a good first stop.
That said, plenty of people like a refund at tax time. It works as forced saving, and that’s a fair choice as long as you know it’s your own money coming back.
How do you read the T4 for your estimate?
Three boxes matter. Box 14 is your employment income. Box 22 is the income tax your employer already sent to the CRA for you. Boxes 16 and 18 show CPP and EI, which the credits take into account. Type box 14 and box 22 into the estimator, and add any deduction slips such as RRSP receipts.
Say Amir in Mississauga has a $60,000 T4 and box 22 shows $8,100. The estimate gives a $220.50 balance owing, because $8,320.50 minus $8,100 is $220.50. Spotting that in October gives him time to put a little aside.
Why might your real refund differ from the estimate?
The estimator counts the basic personal amount, the Canada employment amount, and CPP and EI credits. It doesn’t include medical expenses, tuition, donations, the disability tax credit or carried forward amounts. Those can raise your refund. Refundable credits and benefits, including the GST/HST credit, are paid separately and aren’t in the refund figure either.
Self-employed people have more to watch. Business income brings CPP on both halves, and tax software will include it. The self-employed tax calculator is the better tool for that case. And remember the estimate is for the 2026 rules. It can’t tell you when the money arrives. The CRA’s tax refunds page says it processes electronic returns within 2 weeks when they reach it by the due date, and within 16 weeks for non-residents. The CRA may also keep a refund to cover other debts to the government, and it does not pay a refund of $2 or less.
What about a balance owing?
If the estimate shows a balance, it’s due by 30 April for most people, even if you’re self-employed and have until 15 June to file. For the 2026 return the usual date is 30 April 2027. The CRA had not posted a due dates page for it when we checked in November 2026, but its own tip for newcomers uses April 30, 2027. Interest starts the day after the due date. If you expect a balance, the tax instalments calculator shows how to spread it over next year.
if you have a balance owing for 2025, you must pay it on or before April 30, 2026.
CRA, Filing due dates for the 2025 tax return, canada.ca
How do you run a refund estimate in four steps?
- Collect your T4 slips and any receipts for deductions you can claim, such as RRSP contributions.
- Add up box 14 from every T4 and box 22 from every T4. Those are your income and the tax already paid.
- Enter both in the tax refund calculator and add your deductions.
- Compare the result with the example above, then change one number at a time to see what moves it. Our guide to tax refund estimates and how close you can get goes deeper.
After you file, CRA My Account shows the notice of assessment and the real refund. Our step-by-step filing guide covers the rest of the process.
What this page is based on
Federal and Ontario rates, credits, CPP and EI limits are the 2026 figures published by the CRA and the Government of Ontario. We checked them on 29 September 2026. The due dates come from the CRA’s 2025 return page, and the refund timing and the rules on keeping a refund come from the CRA tax refunds page, which we read in November 2026. The 2026 due dates aren’t published on a CRA dates page yet. This site has no link to the CRA or to any software company.
Frequently asked questions
How is a tax refund calculated?
It is the income tax already withheld or paid minus the tax you owe for the year. If the result is negative, you owe the difference. A refund of $2 or less is generally not paid, according to the CRA.
How much refund do I get on $60,000 in Ontario?
With $9,000 withheld, about $679.50. Tax for the year comes to $8,320.50 on our calculator, which counts only the basic credits and leaves out items such as tuition or medical costs. With $6,000 withheld you would owe $2,320.50 instead. Your own result depends on your slips.
Does an RRSP contribution raise my refund?
Yes. A $5,000 deduction on that same example lifts the refund from $679.50 to $1,896.28, because it lowers taxable income and the tax falls at your top rate. Extra income without withholding does the opposite. The RRSP calculator shows the long-run effect.
Why is my real refund different from the estimate?
The estimate counts only the basic credits. Medical, tuition, donation and carried-forward amounts can raise it, and extra income you forgot can lower it. The CRA can also keep part of a refund to cover other government debts. Check your notice of assessment for the final amount.
How long does the CRA take to pay a refund?
The CRA says it processes electronic returns within 2 weeks when they arrive by the due date, and within 16 weeks for non-residents. Returns that need a closer review take longer, so check My Account for the status. Paper returns usually take longer.
When is a balance owing due?
30 April for most people, including the self-employed who file by 15 June. For the 2026 return that is 30 April 2027. The CRA had not posted a dates page for it in November 2026, so confirm on the CRA site.
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