How can I figure out how much income tax I will pay during retirement?
To estimate how much income tax you will pay during retirement, add up all your expected sources of income to find your total taxable amount. Use the Canada Revenue Agency’s deductions online calculator to calculate the amount of your deductions.
CPP/ QPP and OAS pensions are taxable income, but income tax is not deducted unless you request it.
Anytime your gross income changes, you need to review your income tax situation.
Everyone’s financial situation is unique. You may decide to meet with a financial planner to discuss your personal situation. You will be responsible for any associated costs.
How can I calculate my net income?
First, add up all your sources of income, then deduct your mandatory and optional deductions. The result will be your net income.
Use this worksheet to calculate your day-to-day expenses now and those you expect to have during retirement. This will give you an idea of how much income you will need when you retire.