Methodology
How TaxHours turns taxes into time
TaxHours is an educational estimate. It translates estimated income tax and employee payroll deductions into working time, then compares income-tax amounts with published public-spending shares.
Estimate only, not tax advice.
TaxHours is not a tax return and does not trace an individual’s exact dollars to a program. It is designed to make the scale of public finance easier to understand.
What the calculator estimates
- Federal and provincial or territorial personal income tax using stated 2026 parameters.
- Ontario Health Premium and Ontario surtax where applicable.
- Employee CPP/CPP2 or QPP/QPP2, EI, and Quebec QPIP where applicable.
- Working hours, days, weeks, and an income-tax date based on the user’s weekly hours.
- Proportional federal and provincial spending comparisons using income tax only.
What the calculator does not estimate
- Most detailed credits, deductions, filing circumstances, or employer-side contributions.
- Sales tax, property tax, or optional taxes unless a separately labelled user-provided module is enabled.
- Exact personal budget allocation, personal debt liability, or the outcome of a tax return.
- Behavioural, tax-planning, or income-distribution responses in the Policy Impact Simulator.
Core formulas
Hourly income = annual income / (hours per week x 52) Tax hours = tax dollars / hourly income Daily work hours = hours per week / 5 Work weeks = hours / hours per week Budget-category hours = income-tax hours x category spending share
Federal spending uses federal income tax only. Provincial spending uses provincial or territorial income tax only. Payroll deductions stay separate from general budget categories.
Expenditure and policy-model assumptions
Spending categories are proportional estimates based on their selected source taxonomy. Sources can be official actuals, hybrid actuals, program-focused views, or Statistics Canada functional data; comparability notes are shown with each budget view.
The Policy Impact Simulator uses a static revenue-yield model. It applies an additive percentage-point rate adjustment to marginal income-tax rates and labels its policy costs, sources, and limitations. It is not an official government forecast.
Release and technical materials
Release: 2026.07.01. Downloadable materials provide the machine-readable constants and the full methodology memo.
Download JSON constantsRead methodology memoBrowse grouped sources
