Calculate Your Canadian Federal Taxes 2025
Federal income tax calculator for Canadian residents based on 2024 tax brackets
Federal Tax Calculation Results
Tax Bracket Breakdown
Complete the form above to see your tax calculation and bracket breakdown
Complete the form above to see your tax calculation and bracket breakdown
Understanding Canadian Federal Income Tax
Learn how Canada's progressive tax system works for 2024
Canada uses a progressive federal income tax system where higher income levels are taxed at higher rates. This calculator focuses on federal taxes only - each province and territory also has its own income tax rates.
How Progressive Tax Works
With progressive taxation, you don't pay the same rate on all your income. Instead, your income is divided into "brackets," and each bracket is taxed at a different rate. You only pay the higher rate on income above each bracket threshold.
Federal vs Provincial Tax
Canadian income tax has two components:
- Federal tax - Same rates across Canada (calculated by this tool)
- Provincial/territorial tax - Varies by province (not included)
Basic Personal Amount
The basic personal amount is the income level below which no federal income tax is payable. For 2024, this amount is $15,000 federally. Each province also has its own basic personal amount.
2024 Federal Tax Brackets
Current federal income tax rates for Canadian residents
| Taxable Income Range | Federal Tax Rate | Tax on Maximum |
|---|---|---|
| $0 – $55,867 | 15% | $8,380 |
| $55,868 – $111,733 | 20.5% | $11,452 |
| $111,734 – $173,205 | 26% | $15,983 |
| $173,206 – $246,752 | 29% | $21,329 |
| $246,753+ | 33% | No limit |
⚠️ 2025 Rate Change Coming
Starting July 1, 2025, the lowest federal tax rate will be reduced from 15% to 14.5% on the first $57,375 of income (Budget 2024 legislation).
Basic Personal Amount
Understanding Canada's tax-free threshold
The basic personal amount is a non-refundable tax credit that effectively creates a tax-free threshold. For 2024, the federal basic personal amount is $15,000.
How It Works
The basic personal amount reduces your taxable income, meaning you don't pay federal income tax on the first $15,000 of your income. This benefit is built into the tax calculation automatically.
Provincial Amounts
Each province and territory also has its own basic personal amount, which varies by jurisdiction. These provincial amounts are separate from and in addition to the federal amount.
💡 Tax Savings Example
With a $15,000 basic personal amount and a 15% tax rate, you save $2,250 in federal tax ($15,000 × 15% = $2,250) compared to having no basic personal amount.
Frequently Asked Questions
Common questions about Canadian federal income tax
Does this calculator include provincial taxes?
No, this calculator shows federal income tax only. Each province and territory has its own income tax rates that are added to the federal tax. Your total tax liability will be higher when provincial taxes are included.
What deductions can I include?
Common deductions include RRSP contributions, registered pension plan contributions, union dues, professional fees, and certain employment expenses. This calculator uses your total deductions amount.
When do the 2024 tax brackets apply?
The 2024 tax brackets apply to income earned in the 2024 tax year (January 1 - December 31, 2024). These rates will be used when filing your 2024 tax return in 2025.
What about tax credits?
This calculator includes the basic personal amount credit. Other tax credits (like CPP/EI, medical expenses, charitable donations) are not included in this simplified calculation but would further reduce your actual tax liability.