The right tool depends on what you need to calculate. The CRA’s Payroll Deductions Online Calculator (PDOC) estimates deductions from a paycheque. To calculate an annual personal income tax return, use the CRA’s tax package for the relevant year or choose eligible, certified tax software. This page helps you choose; it does not calculate your total annual income tax or refund.
Choose the tool for your question
| Your question | Where to start | What it does |
|---|---|---|
| How much income tax, CPP and EI should be deducted from an employee’s pay? | CRA Payroll Deductions Online Calculator | Calculates payroll deductions for a pay period using the supplied payroll information. Quebec provincial payroll deductions require Revenu Québec’s WebRAS. |
| What should go on my annual personal return? | CRA T1 tax packages or NETFILE-certified software | Helps calculate a return with applicable income, deductions and credits; software eligibility and support for the tax year and your situation vary. |
| How much GST/HST is added to a taxable price? | GST/HST calculator | Performs sales-tax arithmetic; it does not calculate income tax or decide whether a sale is taxable. |
A payroll calculation is a withholding calculation, not a final annual assessment. A self-employed person’s annual return can involve business income, eligible expenses and CPP or QPP; PDOC is not an annual self-employment tax calculator. The final refund or balance depends on the complete return and amounts already paid.
Start an annual income tax calculation
- Choose the income year. A return for income earned in 2025 uses the 2025 package or software certified for that year. As checked on October 16, 2026, CRA’s list covers initial NETFILE returns for 2018 through 2025. Check the current list before relying on software for a later year; do not assume a 2026 return can already be filed.
- Gather the inputs. Collect applicable income slips, business revenue and expense records, deduction and credit information, income tax already withheld and instalments paid. For a self-employed business, Form T2125 helps calculate business or professional income; farming and fishing use different forms.
- Select the correct return. For a 2025 paper return, CRA generally directs residents to the package for the province or territory where they lived on December 31, 2025. Special situations can require a different package. Quebec residents generally file a separate Quebec return as well as the federal return. CRA: get a T1 package; Revenu Québec: residency.
- Check software before using it. CRA certification concerns electronic filing compatibility; software providers are separate from CRA. Check that the product supports your tax year and necessary forms, any eligibility restrictions and its current cost and privacy terms. If electronic filing is unavailable or unsuitable, use the applicable CRA paper package.
How tax brackets work: a 2026 federal example
Rates apply to slices of taxable income, not the whole amount at the highest rate. For 2026 taxable income of $70,000, assume the published federal brackets apply:
| Slice of taxable income | Federal rate | Before-credit amount |
|---|---|---|
| First $58,523 | 14% | $8,193.22 |
| Next $11,477 | 20.5% | $2,352.785 |
| Federal bracket calculation | $10,546.01, rounded to cents |
This is not the tax bill. It excludes federal credits, provincial or territorial tax, CPP/QPP where applicable and other return adjustments. It also does not account for tax withheld or instalments. Taxable income is not necessarily gross revenue or salary. For the complete 2026 brackets and provincial rates, see CRA’s current-year rate table; Quebec’s provincial income tax is administered separately.
Which payroll calculator should I use?
For a paycheque, open PDOC and choose the calculation and pay period that match the payroll. It covers federal, provincial and territorial payroll deductions, except Quebec provincial deductions. Revenu Québec’s WebRAS is the provincial payroll tool for Quebec. The CRA notes that a PDOC printout is not itself an official statement of earnings. CRA: PDOC.
Is the GST/HST calculator an income tax calculator?
No. GST/HST is a tax on applicable supplies, while personal income tax is calculated on a return using income, deductions, credits and other relevant amounts. The GST/HST calculator can add or remove a standard sales-tax rate; it cannot calculate income tax, payroll withholding or an annual self-employment liability.
Sources checked October 16, 2026: CRA payroll, income-tax package, certified-software and 2026 bracket pages, and Revenu Québec residency guidance linked above.