Hasi :
You have given me more information but not enough information.
I will give you the gist of the calculations .

Assumptions :
You work for 40 hours a week. You generally do 10 hours overtime per week.

Your weekly salary : 40hrs. X $18 + 10 X $ 27 = $ 990

Tax assumption = Tax on your gross expected salary
= $ 990 X 52 weeks = $ 51,480

Now your tax on your paycheque will be on the assumption that your total annual gross salary will be $ 51,480

Standard deduction - (My earlier post was wrong. You get only $ 8000 SD or so. When your wife works she will get may be $ 7000 or so)

$51,480 - $ 8000 = $ 43,480

So your tax is based wither on $ 51,480 or $ 43,480. With this high salary, it is justified that you are taxed 25 %. You can check with your HR of the recruitment company (who gives your paycheque) if she took your SD. Based on my previous experience of working for recruitment companies, they generally do so. They are professional.

As you are aware, your next year benefits from the Govt. start from your this years tax returns. As long as you are under 35 to 40 K per year, you will get full benefits. If it is more than 40K, benefits will gradually ease out as per the increase in the salary.

Murali

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I am a Gents and not a Ladies.

Keep in mind the personal deduction amount, deductions, other non-refundable tax credits etc. all change from year to year. Although personal income tax calculation may seem simple and straight-forward, there are things that you need to consider if you want to take the full advantage of all the benefits you may be eligible for.

There is no straight formula to calculate taxes, every individuals situation is different, and combination of various benefits works differently.

Based on some of your earlier postings it seems like you're trying to understand the Canadian Tax System, which is not a bad thing, but it may not be everyone's cup of tea. Given that every individual would like to understand:

* where their hard earned is going,
* how much tax are they ultimately paying,
* what will be net earning,
* what are the best and legal (or illegal) ways to save on tax..etc.

In order to seek answers to all the above and much more here are a few suggestions:

1. Read up the various booklets and material CRA has on their web site
2. Search the net. In order to do successful searches, you should be able to frame your Q's in such a way that it returns the correct results
3. Attend a tax training course. HR Block, Softron Tax and other have tax courses that teaching you about how to prepare taxes and all the deductions that one would be eligible to claim under various circumstances. Your ultimate goal may not be be a Tax Preparer, but atleast you will learn something, that you've been wanting to learn (or atleast it seems so). BTW, this is the time (and the only time) of the year that the new batch starts.
4. Seek the services of a professional. When you get your taxes done by a professional, retain their services for the entire (or part of the) year. Go back and ask them these questions. They know your exact case with all the relevant details. They should be able to provide you with responses for your particular case.

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Reiki Grand Master