Calculating income tax in Canada is notoriously complicated, but we're going to break it down into its most basic pieces.
The Canadian Revenue Agency (CRA) uses a progressive tax system, so you can expect to pay more in taxes as your income grows.
However, your tax bracket isn't just tied to an income level — it also depends on your province and
type of income.
That's why our Canadian income tax calculator includes estimates for Federal Tax and Provincial Tax as well as contributions for the
Canada Pension Plan (CPP), Quebec Pension Plan (QPP), Employment Insurance (EI), and Quebec Parental Insurance Plan (QPIP).
We'll take a closer look at these later in the Taxes in Canada section.