Canada Federal Tax Calculator 2022
Calculate CRA federal income tax with progressive brackets and non-refundable tax credits
👤 Taxpayer Information
−💰 Income Sources
−50% is taxable
📋 Deductions
+🎁 Tax Credits & Payments
+Employee portion only
📊 Tax Summary
Enter your information and click Calculate to see results
Detailed Tax Breakdown
Understanding Canada Federal Income Tax 2022
🎯 What
Federal income tax is a progressive tax levied by the Canada Revenue Agency (CRA) on taxable income earned by Canadian residents and certain non-residents. This calculator helps you estimate your 2022 federal tax liability based on CRA tax brackets and non-refundable tax credits.
👥 Who
This calculator is designed for Canadian residents earning employment income, self-employment income, investment income, capital gains, or rental income. It applies to individuals filing T1 personal income tax returns for the 2022 tax year.
💡 Why
Accurate tax planning is essential for financial health. This tool helps you estimate federal tax payable, plan RRSP contributions, understand marginal vs effective tax rates, and prepare for tax season. Note: Provincial/territorial taxes are calculated separately.
2022 Federal Tax Brackets & Rates
Progressive Tax System
Canada uses a progressive marginal tax system where different portions of your income are taxed at different rates. You don't pay the top rate on all your income—only on the income that falls within each bracket.
| Bracket | Federal Rate | Taxable Income Range | Tax on Bracket |
|---|---|---|---|
| 1st | 15.0% | $0 - $50,197 | Up to $7,530 |
| 2nd | 20.5% | $50,198 - $100,392 | $10,290 |
| 3rd | 26.0% | $100,393 - $155,625 | $14,360 |
| 4th | 29.0% | $155,626 - $221,708 | $19,164 |
| 5th | 33.0% | $221,709 and above | 33% of excess |
💡 Marginal vs Effective Tax Rate
Marginal Rate: The tax rate on your last dollar of income (your highest bracket)
Effective Rate: Your total tax divided by total income (always lower than marginal)
Deductions & Tax Credits
📉 Deductions (Reduce Taxable Income)
RRSP Contributions
Registered Retirement Savings Plan contributions reduce your taxable income dollar-for-dollar. Maximum contribution: 18% of previous year's income up to annual limit.
Union & Professional Dues
Mandatory union dues or professional membership fees required for employment are deductible.
Other Deductions
Childcare expenses, moving expenses, northern residents deductions, and other eligible deductions.
🎁 Non-Refundable Tax Credits (15% rate)
Basic Personal Amount
$14,398 × 15% = $2,160 credit. Every Canadian resident gets this automatic credit.
CPP & EI Credits
Receive 15% federal credit on CPP and EI contributions paid during the year.
Age & Disability Credits
Age credit ($7,898 × 15%) for seniors 65+. Disability credit ($8,870 × 15%) for eligible individuals.
Dividend Tax Credits
Special credits for eligible and non-eligible Canadian dividends to account for gross-up.
Practical Calculation Examples
Example 1: Single Employee - $60,000 Income
Income & Deductions:
- • Employment Income: $60,000
- • RRSP Contribution: $5,000
- • CPP Contribution: ~$3,500
- • EI Contribution: ~$953
- • Taxable Income: $55,000
Tax Calculation:
- • $50,197 × 15% = $7,530
- • $4,803 × 20.5% = $985
- • Total Tax Before Credits: $8,515
- • Basic Personal Credit: -$2,160
- • CPP/EI Credits: ~-$668
- • Federal Tax Payable: ~$5,687
- • Effective Rate: ~9.5%
Example 2: Self-Employed - $90,000 Income
Income & Deductions:
- • Self-Employment Income: $90,000
- • RRSP Contribution: $10,000
- • Business Expenses: Included above
- • Taxable Income: $80,000
Tax Calculation:
- • $50,197 × 15% = $7,530
- • $29,803 × 20.5% = $6,110
- • Total: $13,640
- • Basic Personal Credit: -$2,160
- • Federal Tax Payable: ~$11,480
- • Effective Rate: ~12.8%
Example 3: High Earner - $200,000 Income
Income & Deductions:
- • Employment Income: $200,000
- • Capital Gains: $50,000 (50% = $25,000 taxable)
- • RRSP Contribution: $30,780 (max)
- • Taxable Income: $194,220
Tax Calculation:
- • $50,197 × 15% = $7,530
- • $50,195 × 20.5% = $10,290
- • $55,233 × 26% = $14,361
- • $38,595 × 29% = $11,193
- • Subtotal: $43,374
- • Less Credits: -$2,160
- • Federal Tax Payable: ~$41,214
- • Effective Rate: ~18.3%
Frequently Asked Questions
Q: Does this calculator include provincial/territorial tax?
A: No, this calculator only calculates federal income tax. Provincial and territorial taxes are calculated separately and vary by province. Use our Provincial Tax Calculator for combined calculations.
Q: What is the capital gains inclusion rate?
A: For 2022, 50% of capital gains are included in taxable income. If you have $10,000 in capital gains, only $5,000 is added to your taxable income and taxed at your marginal rate.
Q: How do RRSP contributions reduce my tax?
A: RRSP contributions are deducted from your income before tax is calculated. A $5,000 RRSP contribution reduces your taxable income by $5,000. If you're in the 26% bracket, you save $1,300 in federal tax (plus provincial savings).
Q: What are CPP and EI contributions?
A: Canada Pension Plan (CPP) and Employment Insurance (EI) are mandatory payroll deductions for employed Canadians. While you pay these throughout the year, you receive a 15% federal tax credit on the amounts paid, which reduces your final tax owing.
Q: Is this calculator CRA-approved or official?
A: No, this is an unofficial educational tool for estimation purposes only. For official calculations, use the CRA's tax calculator or consult with a tax professional. Tax rules can be complex and individual circumstances vary.
Q: What's the difference between marginal and effective tax rate?
A: Your marginal rate is the tax on your next dollar of income (your highest bracket). Your effective rate is total tax ÷ total income. For example, if you earn $100,000 and pay $15,000 in tax, your effective rate is 15%, but your marginal rate might be 26%.
Q: How are dividends taxed differently?
A: Canadian dividends receive special treatment through the dividend tax credit system. Dividends are "grossed up" (multiplied by 1.38 for eligible or 1.15 for non-eligible) to determine taxable income, then you receive a federal dividend tax credit (about 15% for eligible dividends) to avoid double taxation.
Q: When is the tax filing deadline?
A: For most Canadians, the tax filing deadline is April 30, 2023 for the 2022 tax year. Self-employed individuals have until June 15, 2023, though any balance owing must still be paid by April 30 to avoid interest charges.
Disclaimer: This calculator provides federal tax estimates for 2022 based on CRA tax rates and is for informational purposes only. Provincial/territorial taxes are NOT included. Actual tax liability may vary based on additional factors, credits, and specific circumstances. Please consult with a qualified tax professional for personalized tax advice.