Free, educational Canadian retirement tools · figures reviewed October 30, 2026Part of the MITEY network
    RetirementPlanner.ca
    Free tool 2026 rules

    Retirement income tax estimator

    Retirement income is taxed much like employment income: CPP, OAS, pension and RRIF withdrawals are all added together on your return. This estimator applies the 2026 federal and provincial brackets and basic personal amounts and shows any OAS recovery tax.

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    Income for 2026

    Full OAS at 65–74 for October to December 2026: $9,150 a year at that rate.
    Interest, rent, employment. TFSA withdrawals are not taxable — leave them out.
    Total income tax
    $11,234
    federal $7,863 · provincial $3,370
    OAS recovery tax
    $0
    threshold $95,323
    Average / marginal
    16.5% / 29.6%
    marginal includes recovery tax if it applies
    After-tax income
    $56,916
    $4,743 a month

    How your income fills the federal brackets

    Federal 14% band $0–$58,523$58,523
    Federal 20.5% band $58,523–$117,045$9,627
    SourceAmount
    CPP / QPP$14,000
    OAS$9,150
    Pension$20,000
    RRIF / RRSP$25,000
    Other$0
    Total taxable income$68,150

    2026 federal and provincial bracket rates with the federal and provincial basic personal amounts (and Ontario surtax). Not included: the age amount, pension income amount, disability and medical credits, dividend and capital-gains treatment, the Ontario Health Premium, provincial low-income reductions and Quebec provincial tax. Real tax is usually somewhat lower for retirees because of the age and pension credits.

    Educational estimate, not advice. Results depend on your inputs and the assumptions listed. They are not a prediction of returns or a recommendation. Check benefit amounts in your My Service Canada Account and tax details with the CRA. Read the disclaimer.

    How to use this tool

    1. Choose your province.
    2. Enter each income source for the year.
    3. Read total tax, average and marginal rates and any recovery tax.

    Average versus marginal rate

    Your average rate is total tax divided by income. Your marginal rate is the tax on the next dollar — what matters when deciding whether to withdraw more from a RRIF, defer CPP or split income. If you're in the OAS recovery zone, add 15 percentage points to the marginal rate.

    Credits this estimate leaves out

    Retirees often pay less than this estimate because of the age amount, the pension income amount ($2,000 federal base), medical expenses and provincial credits. We leave those out to keep the estimate simple and conservative; your tax software or the CRA's calculators will be more precise.

    Frequently asked questions

    Are TFSA withdrawals taxable?
    No. Leave them out of this estimate; they don't count toward income or the OAS threshold.
    Why is Quebec federal-only?
    Quebec residents file a separate provincial return with Revenu Québec and receive a federal abatement. We apply the 16.5% abatement but don't model Quebec provincial tax.
    Where do the brackets come from?
    From the CRA's current-year rates page and the T4127 payroll formulas (January 2026). See key figures.

    Official sources

    Figures checked October 30, 2026. Rules and amounts change; confirm current details on the official pages above.