Swift Accounting & Business Solutions Ltd.
2440 Kensington Rd NW, Calgary, AB T2N 3S1
(403) 999-2295 · mailbox@swiftltd.ca
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Income Tax Calculator (2026)
Estimate your federal and provincial tax, CPP and EI, and the income you keep. Add employment, business, dividend and capital gain income for any province or territory.
After-tax income
Estimate based on 2026 rules. Not tax advice.
How it's calculated
- Dividends are grossed up by 38% (eligible) or 15% (non-eligible), and 50% of a capital gain is included in income. RRSP and other deductions then come off to give net income and taxable income.
- Federal and provincial tax is worked out bracket by bracket, then reduced by credits for the basic personal amount, CPP, EI and the Canada employment amount, plus the spouse amount if you claim it.
- Dividend tax credits, the Ontario surtax and Health Premium, and low-income tax reductions are applied in the provinces that have them.
- CPP or QPP is figured on employment and self-employment income together, so the yearly maximum applies once. Self-employed people pay both halves.
- The rates on the next dollar are found by adding one dollar of each income type and recalculating the full tax.
Frequently asked questions
How accurate is this income tax estimate?
It follows the CRA formulas for a single filer with the entries above. It leaves out medical, tuition, donation and childcare claims, so your return can differ.
How are dividends and capital gains taxed?
Dividends are grossed up by 38% (eligible) or 15% (non-eligible) and earn a federal and provincial dividend tax credit. Only 50% of a capital gain is added to income.
Why is my marginal rate higher than my average rate?
Your average rate is income tax divided by income received. The marginal rate is the tax on your next dollar, and it rises as your income moves into a higher bracket.
How much can I put in an RRSP?
You can deduct 18% of last year's earned income, up to $33,810 for 2026, plus unused room from earlier years. Your notice of assessment shows your exact room.
Does it include child benefits or GST/HST credits?
No. Benefits are paid on top of your tax result and depend on family income, so they are not part of this estimate.
Talk to a Swift accountant
Rental income, a corporation or a move between provinces can change these numbers. A short call will sort it out, or read about our personal tax service.