Use this calculator to estimate an employee's take home pay based on available information. This information is often useful when considering a new position, especially when the job is in a different province. It may also be useful for comparing two job offers.
Select the employee's province of residence. When considering a position in a different province, be sure to select the province of residence after taking the position. Provincial taxes will be calculated based on the province selected.
Select the claim that the employee will make on the TD1 form. This determines the personal amounts used in the income tax calculations. If you don't have a spouse but you have children, your first child counts as a "spouse" for exemption purposes as well as a child.
Beginning in 2012, if one or more of your dependants is infirm, you may be eligible for an additional $2,000 for that dependant. If you wish to include that enhanced claim, choose "Other" and enter your TD1 exemption in the field that is displayed.
Where claims are made for other amounts, such as the age amount, disability amount, etc., choose "Other". A new field will be displayed for you to enter the amount of the federal exemption. For simplicity, the provincial exemption is assumed to be the same as the federal exemption. This may lead to slight differences in the calculation of provincial tax withholding from the actual amounts withheld by the payroll department.
If you have additional deductions, such as RRSP contributions, child care expenses, employment expenses, investment carrying charges, rental or business losses, or deductible spousal support, you can file T1213 to ask CRA to give your employer to reduce your withholding taxes. Enter the additional claim here.
Enter the amounts withheld from each paycheque that are tax deductible, such as union dues, RRSP contributions, etc. These amounts will reduce the amount of income tax withheld as well as reducing the take home pay.
Enter all amounts withheld from each pay that are not tax deductible, for example premiums to an employee-paid wage loss replacement plan. These amounts reduce the take home pay, but do not reduce the amount of income tax withheld.
If you would like to know the required gross income for a specific annual take home pay amount, enter the target take home pay here and the calculator will determine the gross pay required to generate that take home pay.