Calculates Canadian federal/provincial taxes/benefits for households using PolicyEngine-Canada Python library. For eligibility, amounts, family impacts; compares provinces, no population estimates.
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IMPORTANT: Always use the current year (2026) in calculations, not 2024 or 2025.
PolicyEngine-Canada does NOT have representative population microdata. The only available dataset is a tiny template with 3 synthetic people. This means:
Microsimulation() from policyengine_canada for population-level estimatesSimulationPolicyEngine-Canada models the Canadian federal and provincial tax and benefit system.
What it models:
Federal taxes:
Federal benefits:
Provincial programs (varies by province):
See full list: https://policyengine.org/ca/parameters
The CCB is a tax-free monthly payment to eligible families with children under 18.
Maximum amounts (July 2025 – June 2026):
Phase-out structure: The CCB is reduced based on adjusted family net income (AFNI) using two thresholds.
Threshold 1: $37,487
| Number of children | Reduction rate (AFNI $37,487–$79,845) |
|---|---|
| 1 child | 7.0% |
| 2 children | 13.5% |
| 3 children | 19.0% |
| 4+ children | 23.0% |
Threshold 2: $79,845
| Number of children | Reduction rate (AFNI above $79,845) |
|---|---|
| 1 child | 3.2% |
| 2 children | 5.7% |
| 3 children | 8.0% |
| 4+ children | 9.5% |
Child Disability Benefit (CDB) supplement:
CCB calculation formula:
For each income range:
CCB = sum(max_amount per child) - reduction
If AFNI <= $37,487: no reduction
If $37,487 < AFNI <= $79,845:
reduction = rate_tier1 × (AFNI - $37,487)
If AFNI > $79,845:
reduction = rate_tier1 × ($79,845 - $37,487) + rate_tier2 × (AFNI - $79,845)
Example calculation — 2 children (ages 3, 8), AFNI = $80,000:
Max CCB = $7,997 (under 6) + $6,748 (6-17) = $14,745
Tier 1 reduction = 13.5% × ($79,845 - $37,487) = 13.5% × $42,358 = $5,718
Tier 2 reduction = 5.7% × ($80,000 - $79,845) = 5.7% × $155 = $9
Total reduction = $5,727
CCB = $14,745 - $5,727 = $9,018/year
Tax brackets:
| Taxable income | Rate |
|---|---|
| Up to $57,375 | 15% |
| $57,375 – $114,750 | 20.5% |
| $114,750 – $158,468 | 26% |
| $158,468 – $220,000 | 29% |
| Over $220,000 | 33% |
Basic personal amount (BPA): $16,129 (2026, indexed)
Note: Bracket thresholds are indexed annually to inflation. Check CRA for exact 2026 values.
Tax-free quarterly payment for low/modest-income individuals and families.
Maximum amounts (July 2025 – June 2026):
Phase-out:
Refundable tax credit for low-income workers.
Single individuals:
Families:
Disability supplement:
Monthly pension for seniors 65+.
Maximum amounts (Q1 2026):
OAS recovery tax (clawback):
Monthly benefit for low-income OAS pensioners.
Maximum amounts (Q1 2026):
Income test:
Ontario income tax brackets:
| Taxable income | Rate |
|---|---|
| Up to $52,886 | 5.05% |
| $52,886 – $105,775 | 9.15% |
| $105,775 – $150,000 | 11.16% |
| $150,000 – $220,000 | 12.16% |
| Over $220,000 | 13.16% |
Ontario surtax:
Combines three credits:
| Taxable income | Rate |
|---|---|
| Up to $47,937 | 5.06% |
| $47,937 – $95,875 | 7.70% |
| $95,875 – $110,076 | 10.50% |
| $110,076 – $133,664 | 12.29% |
| $133,664 – $181,232 | 14.70% |
| Over $181,232 | 20.50% |
| Taxable income | Rate |
|---|---|
| Up to $148,269 | 10% |
| $148,269 – $177,922 | 12% |
| $177,922 – $237,230 | 13% |
| $237,230 – $355,845 | 14% |
| Over $355,845 | 15% |
| Taxable income | Rate |
|---|---|
| Up to $51,780 | 14% |
| $51,780 – $103,545 | 19% |
| $103,545 – $126,000 | 24% |
| Over $126,000 | 25.75% |
Note: Quebec has its own tax system (Revenu Québec) with unique credits and deductions. QPP replaces CPP.
CPP (first ceiling):
CPP2 (second ceiling):
Family: 2 parents, 2 children (ages 3, 8), AFNI $80,000, Ontario
Baseline CCB:
Max = $7,997 + $6,748 = $14,745
Reduction = 13.5% × ($79,845 - $37,487) + 5.7% × ($80,000 - $79,845)
= $5,718 + $9 = $5,727
Baseline CCB = $14,745 - $5,727 = $9,018
Doubled CCB:
Max = $15,994 + $13,496 = $29,490
Reduction = 13.5% × ($79,845 - $37,487) + 5.7% × ($80,000 - $79,845)
= $5,718 + $9 = $5,727
Doubled CCB = $29,490 - $5,727 = $23,763
Additional benefit = $23,763 - $9,018 = $14,745/year
Key insight: When only the maximum amounts are doubled (not the phase-out rates), the additional benefit equals the original maximum for families whose benefits aren't fully phased out. The phase-out claws back the same dollar amount regardless of the benefit level.
AFNI is the combined net income (line 23600) of both spouses/partners. It is NOT individual income.
CCB payments from July 2025 – June 2026 are based on 2024 tax year income.
Many provinces have their own child benefits on top of the federal CCB. Always check for provincial supplements.
Quebec has its own pension plan (QPP), parental insurance (QPIP), and many unique credits. Don't assume federal rules apply.
Most thresholds and amounts are indexed annually to CPI. Always verify the year-specific values.