Methodology & Sources

Rates last verified: 2026-10-08 · Tax year: 2026 · All figures below are read from the same configuration file that powers the calculators, so this page and the tools cannot disagree.

How we build and check the calculators

1. Every rate, threshold and limit comes from an official publication (see the sources list below) and lives in one configuration file, never in a page or a script of its own.
2. Calculation logic is shared by all pages (one tax engine, one finance engine) and is covered by automated tests, including browser-level tests that type values into each calculator and check what is displayed.
3. Rates are reviewed in January (new tax year), April, July and October (OAS and benefit indexation), and after each federal or Ontario budget.
4. When we find a mistake, we correct it and record it in the corrections log below.

Official sources

• CRA — Canadian income tax rates for individuals
• Government of Canada — Canada Pension Plan
• Government of Canada — Old Age Security
• Government of Canada — Employment Insurance
• CRA — Canada Child Benefit
• Ontario — Ontario Child Benefit
• CRA — Automobile and motor vehicle allowances
• City of Toronto — Municipal Land Transfer Tax
• Canada Revenue Agency
• Government of Ontario
• CMHC / SCHL
• OSFI

Federal income tax (2026)

Basic personal amount: up to $16,452 (reduced to $14,829 for incomes between $181,440 and $258,482). Credits are applied at the lowest rate, 14%. Canada employment amount: $1,501.

Ontario income tax (2026)

Basic personal amount: $12,989. Ontario surtax: 20% of Ontario tax above $5,818, plus a further 36% above $7,446. The Ontario Health Premium (up to $900) is added for taxable income over $20,000.

CPP and EI

Registered accounts

RRSP: 18% of prior-year earned income up to $33,810. TFSA: $7,000 annual limit ($109,000 cumulative for someone eligible since 2009). FHSA: $8,000 per year, $40,000 lifetime.

Benefits

Housing

CMHC premiums: 4.00% (5–9.99% down), 3.10% (10–14.99%), 2.80% (15–19.99%), plus 0.2% for amortizations over 25 years, and 8% Ontario PST on the premium. Insured mortgages are capped at $1,500,000. Stress test: the greater of 5.25% or your rate + 2%. Debt-service limits: GDS 39%, TDS 44%. Ontario and Toronto land transfer tax use the provincial brackets plus the Toronto municipal brackets, including the luxury tiers above $3 million.

Other

CRA automobile allowance: $0.73/km for the first 5,000 km and $0.67/km after that. Ontario HST: 13% (5% federal + 8% provincial). Eligible-dividend gross-up 38%, non-eligible gross-up 15%. Federal child care expense deduction limits: $8,000 (under 7), $5,000 (7–16), $11,000 (disability).

What the calculators simplify or leave out

• Take-home pay: no Ontario low-income tax reduction, LIFT credit, Canada Workers Benefit, union dues, benefits or pension contributions.
• GIS: the Guaranteed Income Supplement is approximated with a straight line between the maximum and the income cut-off; the official calculation is stepwise and includes a top-up. Use Service Canada's estimator for a decision.
• CPP pension: an estimate based on average earnings relative to the YMPE; it ignores the exact drop-out provisions and the phase-in of the enhancement.
• OAS recovery tax: computed on the income you enter plus your OAS pension, as the CRA does.
• Dividends vs salary: uses a blended Ontario small-business rate of 2.7% (an assumption, not a published rate); it ignores payroll costs other than CPP, and assumes all profit is paid out.
• Instalments: estimates tax for one year; the CRA's own rules (prior-year and current-year options) may give a different amount.

Corrections log