Inputs
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Load sample values, then change any field.
How this calculator works
- It first estimates income tax on the current taxable income entered.
- It then adds the additional income amount and estimates the tax again using the selected province or territory and income type.
- Depending on the components selected, it can also add estimated payroll contributions or a simplified OAS recovery-tax amount.
- The marginal effective tax rate is the selected incremental reductions divided by the additional income amount.
What happens to the next amount of income?
The result will compare baseline and after-additional-income estimates, then show the tax-only rate and effective marginal rate.
Results
Marginal effective tax estimate
Estimated marginal effective tax rate
0.0%Total incremental reduction$0
Net amount kept$0
Tax-only marginal rate0.0%
Above tax-only rate0.0%
Calculation detail
How the estimate is built
View the tax and benefit breakdown Shows how the selected components change when the additional income is added.
| Item | Baseline | After additional income | Difference |
|---|
Methodology and disclosure
What this calculator includes
Core formulas
-
Marginal effective tax rate:
METR = total selected incremental reductions / additional income -
Total selected incremental reductions:
Incremental income tax + included payroll contributions + included OAS recovery tax -
Estimated amount kept:
Additional income - total selected incremental reductions
Assumptions used
Limits and educational disclosure
- Results depend on the taxable income, added income, province or territory, income type, and components counted in the rate.
- This estimate uses only the selected components, such as income tax, payroll contributions, or OAS recovery tax when selected.
- This estimate does not include every credit, deduction, benefit recovery, AMT interaction, household coordination issue, filing status, or future tax-rule change.
- The calculator uses 2026 tax, payroll, and OAS recovery values available in OpenBook. Payroll contribution details are simplified and should be checked against current payroll-source rules for detailed use.
- This calculator is for general educational use only. It is not personalized financial, tax, legal, accounting, investment, retirement, estate, insurance, mortgage, lending, or other professional advice.