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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.
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 how long the CRA takes to pay, and we couldn’t confirm a processing time, so look at the CRA’s pages for that.
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. Interest starts the day after.
Where do the numbers come from?
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 2026 dates aren’t published yet. This site has no link to the CRA or to any software company.
Frequently asked questions
How is a tax refund calculated?
It's the income tax already withheld or paid minus the tax you owe for the year. If the result is negative, you owe the difference.
How much refund do I get on $60,000 in Ontario?
With $9,000 withheld, about $679.50. Tax for the year is $8,320.50, and the calculator leaves out credits such as tuition or medical costs.
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.
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.
When is a balance owing due?
30 April for most people, including the self-employed who file by 15 June. We couldn't find the 2026 tax year dates, so check the CRA page.
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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.