CA Tax Tools

Pension Payroll Deductions Calculator

Estimate how much income tax to withhold from each pension payment when you also receive other taxable retirement income.

01INPUTS

Pension payment details

02RESULTS

Suggested net payment

$2,351

12 payments per year

Suggested tax withholding

$649

$7,790 annually

Gross payment

$3,000

22.0% estimated tax

Registered pension payments generally do not attract CPP/QPP or EI premiums. The income is still taxable, and other CPP, OAS, RRIF or employment income can increase the tax rate. Ask the payer to withhold extra tax if the default withholding is too low.
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Frequently asked questions

Are CPP and EI deducted from pension payments?

Registered pension payments are generally taxable income but are not employment earnings, so they normally do not attract CPP or EI premiums.

Why might pension tax withholding be too low?

A pension payer may not know about CPP, OAS, RRIF withdrawals, employment income or another pension. Those other sources can push the combined income into a higher tax bracket.

Can I request extra tax withheld from a pension?

Yes. Contact the pension administrator and submit its federal and provincial withholding forms or TD1 instructions.

Model the whole household with the retirement income calculator, then test eligible splitting with the pension splitting calculator.

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