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