How tax affects your income
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How tax affects your income
Jack has an income of $30,000 and Emily has an income of $60,000. Calculate Jack and Emily’s income tax in each of the following situations.
Situation one – flat tax
Flat tax calculation: Jack
- Income: $30,000
- Flat tax rate: 15%
- Calculate income tax
- Calculate income after paying tax
Flat tax calculation: Emily
- Income: $60,000
- Flat tax rate: 15%
- Calculate income tax
- Calculate income after paying tax
Situation two – progressive tax
Progressive tax calculation: Jack
- Income: $30,000
- Tax rate on the first $20,000 of income: 15%
- Calculate the tax on the first $20,000 of income
- Tax rate on income over $20,000: 25%
- Calculate income tax on income over $20,000
- Calculate total income tax
- Calculate income after paying tax
Progressive tax calculation: Emily
- Income: $60,000.
- Tax rate on the first $20,000 of income: 15%
- Calculate the tax on the first $20,000 of income
- Tax rate on income over $20,000: 25%
- Calculate income tax on income over $20,000
- Calculate total income tax
- Calculate income after paying tax
Situation three – regressive tax
Regressive tax calculation: Jack
- Income: $30,000
- Tax rate on the first $20,000 of income: 15%
- Calculate the tax on the first $20,000 of income
- Tax rate on income over $20,000: 5%
- Calculate income tax on income over $20,000
- Calculate total income tax
- Calculate income after paying tax
Regressive tax calculation: Emily
- Income: $60,000
- Tax rate on the first $20,000 of income: 15%
- Calculate the tax on the first $20,000 of income
- Tax rate on income over $20,000: 5%
- Calculate income tax on income over $20,000
- Calculate total income tax
- Calculate income after paying tax
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- Date modified:
- 2019-01-31