Canada T1 Tax Return Estimate
Add up your year's income - employment, self-employment, Canadian dividends and capital gains - take off your RRSP, and PayGlance estimates your federal and provincial tax, then compares it with the tax already withheld to show a refund or balance owing. Pick your province for the right rates.
How to use it
- Pick your province and enter income. Employment (T4), self-employment, other income, dividends and capital gains.
- Add RRSP and tax withheld. Your RRSP deduction and the income tax already withheld (T4 box 22).
- See your position. PayGlance shows federal + provincial tax, the dividend tax credits, and whether you're due a refund or owe a balance.
FAQs
How are Canadian dividends taxed?
Eligible dividends (from public companies) are grossed up 38% and get a 15.02% federal dividend tax credit; non-eligible dividends (from small CCPCs) are grossed up 15% with a 9.03% federal credit. Provinces add their own credit. PayGlance applies the provincial credit for Ontario, BC and Alberta and the federal credit everywhere.
How much of a capital gain is taxable?
50% of a capital gain is included in income for 2026 - the proposed increase to 66.67% above $250,000 was cancelled. The taxable half is added to your income and taxed at your marginal rate.
Does this handle Quebec (TP-1)?
Yes. Quebec residents file both a federal T1 and a provincial TP-1, and PayGlance estimates both: federal tax with the 16.5% Quebec abatement, plus Quebec's own brackets (14/19/24/25.75%), basic personal amount and dividend tax credit (eligible 11.70%, non-eligible 3.42% of the grossed-up dividend). QPP, QPIP and the reduced EI rate feed the credits. Quebec's taxable income can differ slightly from the federal figure, so the Quebec side is approximate - confirm against Revenu Quebec.
Is this an official return?
No - it's an estimate to help you plan before filing your T1 (and Quebec TP-1, if applicable) with the CRA and Revenu Quebec. It uses the Basic Personal Amount, CPP/QPP and EI credits; other credits and deductions aren't included. Confirm against CRA.