How this calculator works
Start with an amount before deductions and apply the retained share to estimate what remains. A rate measured against gross is different from a rate measured against net. This tool makes that distinction explicit. It uses your effective rate for any year; it does not choose CRA brackets or calculate CPP, EI or credits.
Formula
For a rate r on gross: net = gross x (1 - r). For a rate q on net: gross = net x (1 + q). The equivalent net rate is r / (1 - r).
Worked example
$1,000 gross less 20% of gross leaves $800 net and $200 deductions. The same deduction is 25% of the $800 net amount.
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Frequently asked questions
Which rate should I use for salary?
Use an estimated effective deduction rate based on your pay statement, not just your highest tax bracket.
Is a 20% gross deduction a 20% net markup?
No. A 20% gross deduction equals a 25% markup on net.
Can the rate be 100%?
Not when recovering gross from net. A full deduction leaves no retained share and cannot identify gross pay.