2026 rules · tax year 2026 · effective January 1, 2026 · next review
Q4 2026 · reviewer: WealthLyra editorial review. All outputs are
educational estimates. They exclude facts the user does not enter and
should be confirmed with the relevant authority or qualified
professional.
Shared Canadian rule registry
Rule set
Coverage
Primary authority
Review status
Income-tax brackets
Federal and provincial/territorial marginal brackets used for
planning estimates
The calculator starts with the beneficiary’s birth year and processes
each calendar year in order. For each eligible year it adds up to $500
of basic CESG room, applies the 20% match to that year’s eligible
contribution subject to the $1,000 annual catch-up ceiling, and
carries unused basic room into the next year. It calculates any
additional CESG separately using the rate selected for that year;
additional CESG cannot be carried forward. Each year’s grants count
toward the shared $7,200 lifetime cap, and contributions count toward
the $50,000 lifetime RESP limit.
For example, five separate $2,500 contributions from 2021 through 2025
produce five $500 basic grants, or $2,500 in total, before any
additional CESG. A single $12,500 lifetime-contribution input cannot
establish that history. The calculator therefore requires annual
amounts and shows an auditable annual grant table. Historical
estimates assume the selected eligibility and additional rate are
correct and that grant payments were received; the RESP promoter’s
records control.
RESP and CESG
The 2026 estimator applies 20% basic CESG to eligible contributions,
normally up to $500 and up to $1,000 when sufficient unused basic
room exists. It separately applies the income-tested additional CESG
to the first $500, then enforces the shared $7,200 lifetime CESG cap
and $50,000 RESP contribution limit. It also checks Canadian
residence, age, and the special prior-contribution condition for
beneficiaries aged 16 or 17. Additional CESG is separated from
earlier basic CESG because it does not reduce basic carry-forward
room.
Automated reference scenarios
$2,500 produces $500 of basic CESG without catch-up use.
$5,000 produces up to $1,000 of basic CESG when enough unused room
exists.
2026 additional-CESG boundaries are tested at $58,523 and
$117,045.
CESG and contribution lifetime limits prevent overstated results.
Emergency fund
The calculator totals essential monthly expenses, subtracts entered
continuing income and support, then applies a disclosed runway
adjustment based on work, housing, dependant, and protection inputs.
Weak protection increases the reserve; strong protection reduces it.
When continuing income/support covers essentials, it retains a
$1,000 accessible-cash floor rather than claiming an uncalculated
contingency.
Manual reference scenarios
Weak coverage must produce a higher target than otherwise
identical uncertain coverage.
Strong coverage must produce a lower target than otherwise
identical uncertain coverage.
Fully supported expenses must produce the explicit $1,000 cash
floor plus entered one-time buffer.
Mortgage planning
Payments use the common Canadian fixed-rate semi-annual convention.
Qualification uses the greater of contract rate plus 2% and the
prescribed qualifying rate, subject to the OSFI uninsured
straight-switch exception where balance and amortization do not
increase. Closing-cost calculations must be treated as estimates
because legal fees, municipal rules, rebates, property type, and
eligibility can vary.
This is a bracket-only incremental-tax estimate, not a complete tax
return. It aggregates eligible and non-eligible dividends before
brackets and credits; applies a superficial loss only to the
affected loss sale; uses units sold × pooled per-unit ACB for a
partial sale; and limits LCGE use to entered qualifying gain and
remaining exemption. The principal-residence plus-one is only
offered after the user confirms Canadian residency in the
acquisition year.
Manual reference scenarios
A superficial loss cannot erase a separate entered capital gain.
Partial sale uses the entered units sold, not all lot units.
LCGE cannot shelter generic gains or exceed the remaining entered
exemption.
Mixed dividend amounts are combined before marginal brackets and
credit allocation.
RRSP, TFSA, and growth tools
TFSA and RRSP room outputs are simplified 2026 planning estimates.
The TFSA tool asks for the first eligible year, non-resident years,
contributions, and withdrawals restored before 2026. The RRSP tool
includes 2025 earned income, pension adjustment, and entered
carry-forward room, but the CRA notice of assessment controls. When
selected, the RRSP refund is modelled in a separate tax-free side
account; no recursive refund contribution is assumed.
Compound-growth optimistic and conservative paths are deterministic
return illustrations, not forecasts or volatility modelling.
Manual reference scenarios
TFSA prior-year withdrawals increase 2026 estimate; non-resident
years do not accrue room.
RRSP pension adjustment reduces new room; carry-forward is added
separately.
Scenario spread changes only the fixed optimistic/conservative
return assumptions.
CPP and OAS timing
CPP applies a permanent 0.6% reduction for each month before age 65
and a 0.7% increase for each month after 65, bounded by ages 60 and
70. OAS applies a 0.6% increase per delayed month from 65 through 70
and an automatic 10% increase in the month after the 75th birthday.
Comparisons use constant dollars: future CPP annual indexation and
OAS quarterly indexation are not forecast because both start choices
receive the same statutory indexation after commencement.
Automated reference scenarios
CPP factors are 64% at 60, 100% at 65, and 142% at 70.
OAS factors are 100% at 65 and 136% at 70.
OAS monthly payment rises by 10% in the month after the 75th
birthday.
OAS recovery tax
The estimate begins with net income before adjustments, subtracts
specified UCCB and RDSP income, and adds specified UCCB or RDSP
repayments. It then applies 15% to income above the applicable
threshold and caps recovery at entered OAS pension and net federal
supplements received. Supported thresholds are $90,997 for 2024,
$93,454 for 2025, and $95,323 for 2026.
Automated reference scenarios
Income at or below the threshold produces no recovery.
$10,000 above the threshold produces $1,500 recovery before the
benefit cap.
Recovery never exceeds the entered annual OAS benefit.
Verification and publication gate
Material formula engines use automated boundary and reference tests
alongside manual calculation trails, primary-source links, expected
outcomes, and reviewer notes. A second reviewer must independently
check formula implementation and source interpretation before the rule
is marked fully approved. If a rule cannot be validated confidently,
the feature should be disabled rather than presented with false
precision. Complete review is repeated before each tax year and when a
relevant public rule changes.
Current gate:
automated checks and manual calculation/source review recorded for the
2026 rules; independent second-review sign-off is pending publication.
First-home savings planner
Monthly savings fill each buyer’s eligible FHSA room, then TFSA room,
then cash. Ordinary FHSA annual, carry-forward and lifetime limits are
enforced separately. New deduction savings use an entered effective
tax rate and arrive the following April. Fixed existing HBP amounts
are included once and illustrated over 15 repayment years; withdrawals
through 2028 use the fifth-year repayment start. Closing costs,
returns, future TFSA room and home-price growth are explicit
assumptions.
Read the complete methods, exclusions and primary sources. Rules checked Q4, 2026; independent second-review sign-off pending.
Canadian salary and take-home pay
Annualized 2026 employment pay uses a separate tested calculation
engine for all provinces and territories. Includes gross-to-net and
reverse solving, CPP/QPP enhancements and age eligibility, EI/QPIP,
territorial employee payroll tax, employer retirement contributions,
actual RRSP room, Ontario surtax/health premium, Quebec abatement and
workers’ deduction, and annual July 2026 tax changes. It excludes
complete tax-return-only credit calculations and specialized
residency/business situations. Read the supported scenarios, manual
adjustments and primary sources.
Salary calculator methodology.
Vehicle lease and loan comparison
Independent loan and lease quotes with nominal-rate amortization at
the selected monthly, twice-monthly, biweekly or weekly frequency.
Compare one or two explicit consecutive leases against a loan over a
common horizon; retain separate resale values and running costs.
Includes capped extra repayments, PPSA/RDPRM charges, annual expense
totals and resale break-even scenarios. Matching monthly quote samples
checked against Canada.ca on Q4, 2026. Automated coverage recorded;
independent financial review pending.