Tax
Your brackets, drawn to scale.
Questions
- What is the difference between marginal and effective tax rate?
- Your marginal rate is the tax on your next dollar; your effective rate is total tax divided by total income. The marginal rate guides decisions like an RRSP top-up; the effective rate describes your overall burden.
- Does it handle T1032 pension income splitting?
- Yes. The model lets eligible couples shift up to half of qualifying pension income to the lower earner and shows the combined-tax effect, the way Form T1032 works.
- Are provincial brackets included?
- Federal and provincial brackets are stacked together, with the basic personal amount, age amount, and pension credit applied, so the picture matches a real Canadian return.