Net income?

[Christine32]

Hi,


I'm trying to figure out the net amount of a monthly gross $2560 salary in Alberta however all the payroll calculators I found on the internet are showing totally different numbers.

Can anybody help me to calculate the right amount?

Thank you so much for your help,
Christine

[Jonboy]

Assuming a single person with no kids then $2,088.00. 

[people]

Kindly advise how to calculate net income out of gross income.

Thnx

[Jonboy]

Kindly advise how to calculate net income out of gross income.

Thnx

It is complex.  First you have to calculate taxable income.  This is the same for both federal and provincial taxes.  Then you calculate tax payable.  This is at different rates for federal and provincial tax.  Finally you apply tax credits.  Again there are federal and provincial credits.  Some are similar, some are not.  All in all, it is not something you want to try and do by hand unless you have very simple tax affairs. 

Two options are:

1) download the tax package for your province from the CRA website here: http://www.cra-arc.gc.ca/formspubs/t1gnrl/menu-eng.html and work through it.

2) use an online calculator.  The best I know is taxtips and it can be found here http://www.taxtips.ca/calculators/taxcalculator.htm  It looks a bit daunting at first and is not particularly intuitive, but it is very accurate.