Tax Refund Estimator
Estimate your refund or balance owing from your slips before you file, with the reasons people owe and how to fix it.
Want this number lower?
The Lower My Tax report takes these numbers, tests every legal way to cut the bill, and shows the saving of each in dollars, with what to do and by when.
The short version
- Your refund is simple arithmetic: tax already deducted from your pay and slips, minus the tax you actually owe for the year. Positive means a refund; negative means a balance owing.
- Enter your T4 income and the tax deducted (box 22), plus any other income and RRSP contributions. The estimator uses the 2026 rules for every province except Quebec.
- Example, Ontario: $72,000 of employment income with $12,500 withheld gives a refund of about $800; with $11,000 withheld, about $700 owing.
- The most common reasons for owing: two jobs, self-employment or side income, investment income, and pension or EI with too little withheld.
- A refund isn't a bonus; it's your money coming back interest-free. A big refund every year means too much is being withheld.
Tax Refund Estimator for Canada
A refund feels like winning a small lottery. It's actually CRA returning an interest-free loan you made to it all year. Owing feels like a fine, and it's really just the opposite loan. The estimator above tells you which one you're getting before you file, using the numbers on your slips.
Where the Numbers Come From
| Enter | Find it on |
|---|---|
| Employment income | T4 box 14 (add all T4s); see the T4 slip |
| Income tax deducted | T4 box 22, plus tax deducted on T4A, T4E, T4RSP, T4RIF and pension slips |
| Self-employment income | Your net profit from form T2125; see T2125 |
| Other income | Interest (T5), pensions (T4A), EI (T4E), net rental income |
| Capital gains | The full gain; the estimator taxes half |
| RRSP | Contribution receipts you'll deduct this year |
Missing a slip? Check My Account or see missing tax slips.
Why am I owing this year?
Give the assistant your slips and what changed from last year. It explains exactly where the balance comes from and how to avoid it next year.
Why You Might Owe
| Situation | Why | Fix for next year |
|---|---|---|
| Two jobs | Each employer withholds as if it's your only job | Ask one employer to withhold extra (form TD1) |
| Side business or gig work | No tax withheld, plus both halves of CPP | Set aside money monthly; see how much to save |
| Pension, RRIF, CPP or OAS | Little or no tax withheld at source | Ask for voluntary withholding |
| EI or parental leave | Withheld at a flat rate that may be too low | Set money aside |
| Investment or rental income | No withholding | Instalments if CRA asks |
The full list is on why do I owe tax?
Ways to Increase a Refund (Legitimately)
- RRSP contributions before the deadline, at your marginal rate; see the RRSP calculator.
- Credits people forget: medical expenses, donations, tuition, disability, caregiver, home buyers' amount. The tax problem solver lists the ones that fit you.
- Deductions: child care, moving, union dues, employment expenses.
When You'll Get It
CRA's 2026-27 goal is about two weeks for returns filed online with direct deposit and about 12 weeks on paper; see how long refunds take. If the refund is smaller than expected, see refund reduced. Paycheque by paycheque, try the salary tax calculator.
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How do I estimate my tax refund in Canada?
Add up the tax deducted on your slips, then subtract the tax you owe on your total income for the year. The estimator does the second part using the current federal and provincial rules.
Why do I owe tax when I have a T4 job?
Usually because of a second job, side income, investment income or a pension with too little tax withheld. Each source may be withheld as if it were your only income.
Does an RRSP contribution increase my refund?
Yes. It reduces taxable income, so it saves tax at your marginal rate, which shows up as a bigger refund or a smaller balance.
Is a big refund good?
It means too much tax was withheld during the year. You can ask your employer to withhold less with a TD1 form or a reduction request (form T1213) if you have regular deductions such as RRSP contributions.
Does the estimator include credits like medical expenses?
It includes the basic credits and CPP and EI. Other credits, such as medical expenses and donations, would increase your refund further.
Sources: CRA, Tax rates and brackets; Service standards 2026-27. Checked October 2026. Examples come from our 2026 rules engine with basic credits only.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.