Canada Income Splitting 'What If' Calculator

Historical estimates for 2015

Use taxable incomes, not total incomes. Provincial transfers and the unlimited 50/50 split are hypothetical scenarios, not tax benefits you can claim. Annual 2015 brackets, basic personal credits, Ontario/P.E.I. surtaxes and Quebec federal abatement are included. Other credits, tax reductions, Ontario health premium, Quebec health contribution and benefits are omitted. Rates are integrated mathematically rather than using the CRA forms' rounded base taxes. Use the main calculator for an actual Schedule 1-A calculation and eligibility checks.

First taxable income

Second taxable income

Province / territory

Federal taxes

Amount transferred to first income: $0

A positive transfer goes from the second income to the first; a negative transfer goes the other way.

First income: $1,301

Second income: $4,301

Combined (after credit limit): $5,602

Tax Summary (Federal Tax Credit Only)

Scenario	Transfer to first income	Provincial tax	Federal tax	Total tax	Tax savings
Without Income Splitting	$0	$0	$5,602	$5,602	$0
Selected Income Splitting (Federal $2,000 max)	$0	$0	$5,602	$5,602	$0
Suggested Income Splitting (Federal $2,000 max)	$0	$0	$5,602	$5,602	$0

The suggestion is the smallest transfer, to cent precision, achieving maximum modeled savings. Optimization is independent of the chart's 51 display samples. Transfers stop at equalization or $50,000.

There are no income-splitting tax savings for these incomes.

Total tax by transfer from higher to lower income (federal credit capped at $2,000)

Tax Summary (Alternative Scenarios)

Scenario	Transfer to first income	Provincial tax	Federal tax	Total tax	Tax savings
Suggested Income Splitting (Federal $2,000 max, Provincial $2,000 max)	$0	$0	$5,602	$5,602	$0
50/50 Income Splitting (no transfer or credit limits)	$10,000	$0	$5,602	$5,602	$0

The provincial-credit scenario allows up to $2,000 each in federal and provincial savings. Quebec federal savings are limited to $1,670 after abatement. The 50/50 scenario ignores both the transfer limit and credit limits. Selected tax bars allocate the hypothetical federal savings to the spouse with higher original federal tax; the individual bars sum to the combined total.

Disclaimer: This is not an official tax estimation tool. Use CRA-endorsed tools or consult tax professionals when filing a return.