Income tax deducted from your pay

If you receive employment income or any other type of income, your employer or payer will deduct income tax at source from the amount paid.

Your employer or payer will calculate how much income tax to deduct by referring to your total claim amount on Form TD1, Personal Tax Credits Return and using approved calculation methods. For more information, go to, Filing Form TD1, Personal Tax Credits Return.

There is no annual limit as to the total amount of income tax your employer or payer can deduct in a year.

If you expect to be making less than the total claim amount indicated on Form TD1 for an entire year, you can ask your employer or payer to not make any deductions.

Your employer or payer will remit these deductions to us through payroll remittances.

Forms and publications

• Form TD1, Personal Tax Credits Return

Related topics

• Learning About Taxes
• Where Your Tax Dollar Goes
• Electronic Form TD1

Date modified:

2015-12-10