How to Calculate Canadian Personal Income Tax

The equivalent to the Internal Revenue Service for the United States, the Canada Revenue Agency is tasked with administering Canada's tax laws. Like the United States, Canada has a tax based on a percentage of income. The tax rates are listed on the CRA website (see References).

Things You'll Need

• Calculator or spreadsheet

Instructions

1. Start with your gross income amount. Subtract zero if your income was less than 40,726. However, if you make over 40,726, 81,452, and, 126,264, subtract 40,726, 81,452, and, 126,264, respectively. This amount can't be negative.

2. Multiply by your federal tax rate. This depends on your tax bracket.

3. Take this amount and add zero if your income is less than 40,726. However, if you make more than 40,726, 81,452, and 126,264, add 6,109, 15,069, 26,720, respectively. This is the amount of tax you owe for the tax year.

Tips & Warnings

• These figures are as of the 2009 tax year. Refer to the CRA tax tables for updates in the federal tax rate.

References

• Canada Revenue Agency: What Are the Income Tax Rates in Canada for 2009?