Tax Summary
Tax Rate Breakdown
RRSP Optimization
Based on your income, here's your RRSP impact for 2024.
2024 Canadian Federal Income Tax Brackets
| Taxable Income | Federal Tax Rate | Tax on This Bracket |
|---|---|---|
| $0 – $55,867 | 15% | Up to $8,380 |
| $55,867 – $111,733 | 20.5% | Up to $11,452 |
| $111,733 – $154,906 | 26% | Up to $11,225 |
| $154,906 – $220,000 | 29% | Up to $18,878 |
| Over $220,000 | 33% | — |
Canadian Income Tax — FAQ
Common questions about calculating your 2024 federal and provincial taxes in Canada.
How is Canadian income tax calculated for 2024?
Canada uses a progressive marginal tax system. You pay a lower rate on the first dollars earned and a higher rate on dollars above each bracket threshold. Your total tax bill combines federal income tax (set by CRA) and provincial or territorial income tax (set by your province). On top of that, employees pay CPP contributions and EI premiums on employment income. Enter your numbers above and TaxClear will break it all down instantly.
What is the 2024 basic personal amount?
The 2024 federal basic personal amount (BPA) is $15,705. Every Canadian resident can claim this as a non-refundable tax credit, reducing federal tax by $2,355.75 (15% × $15,705). Each province also has its own basic personal amount applied against provincial tax.
How much RRSP room do I have for 2024?
Your 2024 RRSP contribution limit is 18% of your 2023 earned income, up to a maximum of $31,560, plus any unused room carried forward from previous years. RRSP contributions reduce your net income dollar-for-dollar, generating a tax refund at your marginal rate — the most powerful tax-reduction tool available to most Canadians.
What are the 2024 CPP and EI rates?
For 2024, the CPP contribution rate is 5.95% on employment earnings between the basic exemption of $3,500 and the maximum pensionable earnings of $68,500 — a maximum employee contribution of $3,867.50. The EI premium rate is 1.66% on insurable earnings up to $63,200 — a maximum of $1,049.12.
What is the difference between effective rate and marginal rate?
Your effective tax rate is the percentage of your total income paid in combined taxes — a useful benchmark for year-over-year comparison. Your marginal tax rate is the rate applied to your next dollar of income, combining federal and provincial brackets. The marginal rate is what matters most for financial decisions like RRSP contributions, capital gains timing, and salary vs. dividend planning.
How are capital gains taxed in Canada in 2024?
Capital gains are only 50% included in your taxable income (the "inclusion rate"). For example, a $10,000 capital gain adds $5,000 to your net income, which is then taxed at your marginal rate. Enter your capital gains in the calculator above — TaxClear applies the correct 50% inclusion automatically.
Is this calculator accurate for all Canadian provinces?
TaxClear covers all 10 provinces — Ontario, British Columbia, Alberta, Québec, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, Newfoundland & Labrador, and Prince Edward Island — using 2024 bracket rates. The estimates are for planning purposes; consult a CPA or use NETFILE-certified software for your official CRA return.