Tax Calculator Canada 2019

Introduction & Importance

The 2019 Canada Tax Calculator is an essential financial tool designed to help Canadian taxpayers accurately estimate their tax obligations for the 2019 tax year. Understanding your tax liability is crucial for effective financial planning, budgeting, and ensuring compliance with Canada Revenue Agency (CRA) regulations.

This comprehensive calculator incorporates all federal tax rates, provincial tax brackets, and common deductions that were applicable in 2019. Whether you’re a salaried employee, self-employed professional, or retiree, this tool provides valuable insights into your tax situation.

The calculator accounts for:

• Progressive federal tax brackets (15% to 33%)
• Province-specific tax rates and brackets
• Basic personal amount and other non-refundable tax credits
• RRSP contributions and their tax-deferral benefits
• Common deductions like union dues and professional fees

According to Canada Revenue Agency, over 30 million Canadians filed tax returns in 2019, with the average tax refund being approximately $1,700. Proper tax planning can help maximize your refund or minimize your balance owing.

How to Use This Calculator

Follow these step-by-step instructions to get the most accurate tax calculation:

1. Enter Your Total Income: Input your total income for 2019. This should include:
   • Employment income (T4 slips)
   • Self-employment income
   • Investment income (interest, dividends, capital gains)
   • Rental income
   • Other taxable income sources
2. Select Your Province: Choose your province of residence as of December 31, 2019. Provincial tax rates vary significantly, so this selection is crucial for accurate results.
3. Enter RRSP Contributions: Input the total amount you contributed to your Registered Retirement Savings Plan (RRSP) during 2019. These contributions reduce your taxable income.
4. Enter Other Deductions: Include any other deductions you’re eligible to claim, such as:
   • Union or professional dues
   • Child care expenses
   • Moving expenses (if applicable)
   • Home office expenses (for self-employed)
5. Click Calculate: Press the “Calculate Taxes” button to see your results instantly.
6. Review Your Results: The calculator will display:
   • Your taxable income after deductions
   • Federal and provincial tax amounts
   • Total tax payable
   • Your average and marginal tax rates
   • Your after-tax income

Pro Tip:

For the most accurate results, have your T4 slips, RRSP contribution receipts, and other tax documents handy when using the calculator. The CRA’s personal income guide can help identify all income sources you need to report.

Formula & Methodology

Our 2019 Canada Tax Calculator uses the official tax brackets and rates published by the Canada Revenue Agency and provincial tax authorities. Here’s the detailed methodology:

Federal Tax Calculation (2019 Rates)

Tax Bracket	Tax Rate	Tax on This Bracket
Up to $47,630	15%	$7,144.50
$47,631 to $95,259	20.5%	$9,775.25
$95,260 to $147,667	26%	$13,272.95
$147,668 to $210,371	29%	$18,687.47
Over $210,371	33%	33% of amount over $210,371

The federal basic personal amount for 2019 was $12,069. This is the amount of income you could earn without paying federal tax.

Provincial Tax Calculation

Each province has its own tax brackets and rates. For example, here are Ontario’s 2019 tax rates:

Ontario Tax Bracket (2019)	Tax Rate
Up to $43,906	5.05%
$43,907 to $87,813	9.15%
$87,814 to $150,000	11.16%
$150,001 to $220,000	12.16%
Over $220,000	13.16%

Calculation Process

1. Determine Taxable Income: Subtract RRSP contributions and other deductions from total income
2. Apply Federal Tax Brackets: Calculate tax using progressive federal rates
3. Apply Provincial Tax Brackets: Calculate tax using selected province’s rates
4. Calculate Non-Refundable Tax Credits: Apply basic personal amount and other credits
5. Sum Total Tax: Add federal and provincial taxes
6. Calculate Rates:
   • Average Tax Rate = (Total Tax / Taxable Income) × 100
   • Marginal Tax Rate = Highest bracket rate (federal + provincial)

The calculator uses this formula to provide accurate results that match what you would calculate manually or what the CRA would determine when processing your return.

Real-World Examples

Case Study 1: Single Professional in Ontario

Scenario: Sarah is a single marketing professional living in Toronto. She earned $75,000 in 2019, contributed $5,000 to her RRSP, and had $1,200 in other deductions.

Calculation:

• Taxable Income: $75,000 – $5,000 (RRSP) – $1,200 (deductions) = $68,800
• Federal Tax: $7,144.50 (first bracket) + 20.5% of ($68,800 – $47,630) = $9,003.42
• Ontario Tax: 5.05% of $43,906 + 9.15% of ($68,800 – $43,906) = $4,123.73
• Total Tax: $9,003.42 + $4,123.73 = $13,127.15
• After-Tax Income: $75,000 – $13,127.15 = $61,872.85

Case Study 2: Retired Couple in British Columbia

Scenario: John and Mary are retired and living in Vancouver. Their combined income in 2019 was $60,000 (pension and investments), with $8,000 in RRSP withdrawals (not taxable) and $2,000 in medical expenses.

Calculation:

• Taxable Income: $60,000 – $2,000 (medical) = $58,000
• Federal Tax: $7,144.50 (first bracket) + 20.5% of ($58,000 – $47,630) = $8,250.42
• BC Tax: 5.06% of $40,707 + 7.7% of ($58,000 – $40,707) = $2,830.94
• Total Tax: $8,250.42 + $2,830.94 = $11,081.36
• After-Tax Income: $60,000 – $11,081.36 = $48,918.64

Case Study 3: Self-Employed Individual in Alberta

Scenario: Mike is a freelance graphic designer in Calgary with $95,000 in business income. He contributed $12,000 to his RRSP and had $6,000 in business expenses.

Calculation:

• Taxable Income: $95,000 – $12,000 (RRSP) – $6,000 (expenses) = $77,000
• Federal Tax: $7,144.50 + 20.5% of ($77,000 – $47,630) = $10,053.42
• Alberta Tax: 10% of $77,000 = $7,700.00
• Total Tax: $10,053.42 + $7,700.00 = $17,753.42
• After-Tax Income: $95,000 – $17,753.42 = $77,246.58

Key Insight:

These examples demonstrate how tax liability varies significantly based on income level, province, and deductions. The CRA’s deductions guide provides complete information on all eligible deductions you might be missing.

Data & Statistics

2019 Tax Brackets Comparison by Province

Province	Lowest Rate	Highest Rate	Basic Personal Amount
Alberta	10%	15%	$18,915
British Columbia	5.06%	16.8%	$10,320
Ontario	5.05%	13.16%	$10,354
Quebec	14%	25.75%	$15,000
Nova Scotia	8.79%	21%	$8,481
New Brunswick	9.68%	20.3%	$9,894
Manitoba	10.8%	17.4%	$9,134
Saskatchewan	10.5%	14.5%	$16,065

2019 Tax Revenue by Source (Federal)

Tax Source	Amount (Billions)	% of Total Revenue
Personal Income Tax	$165.3	48.6%
Corporate Income Tax	$55.6	16.4%
GST/HST	$40.3	11.9%
EI Premiums	$23.8	7.0%
Other Taxes & Duties	$60.2	17.7%
Non-Resident Taxes	$27.8	8.2%
Total	$340.0	100%

Source: Department of Finance Canada

These statistics highlight how personal income tax constitutes nearly half of all federal revenue, underscoring the importance of accurate tax calculation for both individuals and government budgeting.

Expert Tips

1. Maximize Your RRSP Contributions

For 2019, the RRSP contribution limit was 18% of your previous year’s earned income, up to a maximum of $26,500. Contributions reduce your taxable income and grow tax-free until withdrawal.

2. Claim All Eligible Deductions

Commonly missed deductions include:

• Home office expenses (if you work from home)
• Professional membership dues
• Union dues
• Moving expenses (if you moved for work)
• Child care expenses
• Medical expenses exceeding 3% of net income

3. Understand Tax Credits vs. Deductions

Tax credits reduce your tax owed directly (e.g., $1,000 credit = $1,000 less tax). Deductions reduce your taxable income (e.g., $1,000 deduction at 20% rate = $200 less tax).

4. Consider Income Splitting

If you have a spouse or common-law partner in a lower tax bracket, consider:

• Spousal RRSP contributions
• Pension income splitting (if eligible)
• Paying reasonable salaries to family members who work in your business

5. Plan for Tax Installments

If you owe more than $3,000 in taxes for 2019 (and in either 2018 or 2017), you may need to pay quarterly tax installments. The CRA charges interest on late installments.

6. File on Time Even If You Can’t Pay

The penalty for late filing (5% + 1% per month) is much higher than the interest on unpaid taxes (currently 6%). Always file by April 30 to avoid the late-filing penalty.

7. Use Tax Software or a Professional

For complex situations (self-employment, rental income, capital gains), consider using:

• Certified tax software (e.g., TurboTax, H&R Block)
• A professional accountant
• The CRA’s NETFILE service for electronic filing

8. Keep Impeccable Records

The CRA can audit returns up to 6 years old (longer in cases of fraud). Keep:

• Receipts for all deductions and credits
• Bank statements
• Invoices and contracts
• Mileage logs (if claiming vehicle expenses)

Interactive FAQ

What was the federal basic personal amount in 2019?

The federal basic personal amount for 2019 was $12,069. This is the amount of income you could earn without paying federal income tax. Some provinces also have their own basic personal amounts which may differ from the federal amount.

For example, Alberta’s basic personal amount was $18,915 in 2019, while Ontario’s was $10,354. The calculator automatically accounts for these provincial differences when you select your province.

How does the calculator handle RRSP contributions?

RRSP contributions reduce your taxable income dollar-for-dollar. When you enter your RRSP contributions in the calculator:

1. Your total income is reduced by the RRSP amount
2. This lower income is then used to calculate your taxes
3. The tax savings from your RRSP contribution is reflected in your final tax calculation

For 2019, the RRSP contribution limit was 18% of your 2018 earned income, up to a maximum of $26,500. Any unused contribution room from previous years could also be used.

What’s the difference between average and marginal tax rates?

Average Tax Rate is the total tax you pay divided by your total income. It represents the overall percentage of your income that goes to taxes.

Marginal Tax Rate is the rate you pay on your next dollar of income. It’s based on the highest tax bracket your income reaches.

Example: If you earn $50,000 in Ontario:

• Your average tax rate might be ~15%
• Your marginal tax rate would be 20.5% (federal) + 9.15% (Ontario) = 29.65%

The marginal rate is important for financial planning as it determines the tax impact of additional income (like bonuses) or deductions.

Can I use this calculator for Quebec taxes?

Yes, the calculator includes Quebec’s provincial tax rates. However, there are some important considerations for Quebec residents:

• Quebec collects its own income tax and administers its own tax system
• The calculator uses Quebec’s 2019 tax brackets (14% to 25.75%)
• Quebec has different tax credits and deductions than other provinces
• You’ll need to file both a federal return and a Quebec provincial return

For the most accurate Quebec-specific calculations, you may want to consult Revenu Québec‘s official resources.

How does the calculator handle capital gains?

The calculator treats all income you enter as regular income. For capital gains, you should:

1. Calculate 50% of your capital gains (the taxable portion)
2. Add this amount to your other income when entering your total income

Example: If you had $20,000 in capital gains, you would add $10,000 (50%) to your other income sources when using the calculator.

This reflects Canada’s tax treatment where only 50% of capital gains are included in taxable income.

What if I have income from multiple provinces?

If you earned income in multiple provinces during 2019, your tax situation becomes more complex. The general rules are:

• Your tax residence (where you lived on December 31) determines your provincial tax rates
• Income earned in other provinces may be taxed differently
• You may need to file multiple provincial returns

For this calculator, select the province where you resided on December 31, 2019. For more complex multi-province situations, consider consulting a tax professional or using specialized tax software that can handle inter-provincial income allocation.

Is this calculator accurate for self-employed individuals?

Yes, the calculator can provide a good estimate for self-employed individuals, but there are some important considerations:

• Enter your net business income (revenue minus expenses) as your total income
• Include any deductions you’re eligible for (home office, vehicle expenses, etc.) in the “Other Deductions” field
• Remember that self-employed individuals must also pay CPP contributions (both employer and employee portions)
• The calculator doesn’t account for CPP contributions – you’ll need to calculate these separately

For 2019, the CPP contribution rate was 5.1% on income between $3,500 and $57,400 (maximum contribution of $2,748.90 for employees). Self-employed individuals pay both portions (10.2%).