Canada Income Splitting Tax Calculator

Estimates for the Year 2015

The first version of the calculator was created before any official tax forms were available. Therefore multiple alternative scenarios were calculated (including no limits scenarios and provincial taxes). The results are still correct for the federal taxes (do not select any province), when your and your spouse's taxable income is used as a first and second income (as opposed to the total income). (Taxable income is the total income minus RRSP, child care expenses, business expenses, etc).

Federal Taxes
First income
$100,000
$100K
$80,000
$80K
$60,000
$60K
$40,000
$40K
$20,000
$20K
$0
Second income
$200,000
$200K
$160,000
$160K
$120,000
$120K
$80,000
$80K
$40,000
$40K
$0
First tax
Total tax
Second tax
Amount transferred
$50,000
$50K
$25,000
$25K
$0
$25,000
$25K
$50,000
$50K

Tax Summary (Federal Tax Credit Only)

First Income
, Second Income

(Select your province to see provincial taxes too)
Amount Transferred, $ Total Tax, $ Tax Savings, $
Without Income Splitting - -
Selected Income Splitting (Federal $2,000 max)
Suggested Income Splitting (Federal $2,000 max)*

* A minimal transferred amount achieving maximum tax savings. Assuming maximum tax credit is $2,000 for the federal tax only.

Transferring
from income
to
you save

in taxes!

There are no income splitting tax savings with incomes
and
.

(Select your province to see provincial taxes too)

Tax Summary (Alternative Scenarios)

First Income
, Second Income

(Select your province to see provincial taxes too)
Amount Transferred, $ Total Tax, $ Tax Savings, $
Suggested Income Splitting (Federal $2,000 max, Provincial $2,000 max)*
50/50 Income Splitting** -

* Assuming maximum tax credit is $2,000 for the federal tax and $2,000 for the provincial tax.

** Tax calculated when total income is split equally within the family (joint account). This is not possible in most cases given the current tax law limitations, but ideally this case must yield maximum tax savings.

How to: to evaluate the effect of income splitting on your taxes select the province, adjust family incomes using income sliders on both sides and play with 'Amount Transferred' slider at the bottom.

Federal and provincial tax brackets and basic amount numbers are based on income tax rates for individuals (as posted on the Canada Revenue Agency site).

Disclaimer: This is not an official tax estimation tool. It is just an attempt to estimate how tax splitting may affect total income taxes paid by a Canadian family. Always use tools endorsed by Canada Revenue Agency or consult with tax professionals when filing your tax return.