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Individual - Sample personal income tax calculation
Last reviewed - 13 June 2025This sample calculation applies to a calendar year ending 31 December 2025.
Assumptions
- Resident husband and wife living in Alberta; two children (under 18); one spouse earns all the income.
- Total remuneration of CAD 110,000.
- Capital gains of CAD 16,000.
- Foreign interest income of CAD 5,000, from which CAD 750 withholding has been deducted.
- Other interest income of CAD 6,000.
- All amounts are in Canadian dollars (CAD).
Tax computation
| CAD | CAD | |
| Net income | ||
| Salary | 110,000 | |
| Interest | 11,000 | |
| Taxable capital gain (one-half of actual gain) (1) | 8,000 | |
| Enhanced government pension plan deduction | (1,074) | |
| Net income/Taxable income | 127,926 | |
| Income tax (see the Taxes on personal income section): | ||
| Federal tax before credits | 23,507 | |
| Less - Personal credits: | ||
| Basic | 2,339 | |
| Spouse | 2,339 | (4,678) |
| Less - Other credits: | ||
| Employment tax credit | 213 | |
| Government pension plan and employment insurance plan contributions tax credit | 643 | (856) |
| Basic federal tax | 17,973 | |
| Less - Foreign tax credit | ||
| Lesser of 750 and (5,000 / 127,926) x 17,973 = 702 | (702) | |
| Federal income tax | 17,271 | |
| Provincial (Alberta) income tax (2) before credits | 11,593 | |
| Less - Personal credits: | ||
| Basic | (1,786) | |
| Spouse | (1,786) | |
| Government pension plan and employment insurance plan contributions tax credit | (355) | |
| Alberta tax | 7,666 | |
| Total income tax (3, 4) | 24,937 |
Notes
- Assuming the capital gains are not in respect of qualified farm property, qualified fishing property, or shares of a small business corporation, no capital gains deduction is available.
- In Alberta, the following rates are applied to taxable income in 2025.
Taxable income (CAD) Tax on first column (CAD) Tax on excess (%) Over Not over 0 60,000 0 8 60,000 151,234 4,800 10 151,234 181,481 13,923 12 181,481 241,974 17,553 13 241,974 362,961 25,417 14 362,961 42,355 15 - Personal tax credits and miscellaneous tax credits are subtracted from the result to determine Alberta tax. The 2025 Alberta personal tax credit for the government pension plan and employment insurance plan contributions is equal to 8% (maximum credit is CAD 355) of the lesser of the base (non-enhanced) amounts payable and the required base premiums for the year.
- The taxpayer does not have sufficient tax preference items to be liable for AMT.
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