The Canadian T4 tax form is used to report employment income and benefits that you received during the tax year. To calculate the T4 tax, you will need to know your total employment income, as well as any deductions and credits that you are eligible for.
Here is an example of a simple Python function that calculates the T4 tax using the federal tax rates for the 2021 tax year:
def calculate_t4_tax(income, deductions=0, credits=0):
# Calculate the federal tax
tax = 0
if income <= 50000:
tax = income * 0.15
elif income <= 150000:
tax = 7500 + (income - 50000) * 0.205
elif income <= 666667:
tax = 33275 + (income - 150000) * 0.26
else:
tax = 144489 + (income - 666667) * 0.29
# Calculate the total tax by adding any applicable provincial tax
total_tax = tax + (income - deductions) * 0.1
# Subtract any credits to get the final amount of tax payable
tax_payable = total_tax - credits
return tax_payable
# Example: Calculate the T4 tax for an income of $50,000 with $1,000 in deductions and $500 in credits
t4_tax = calculate_t4_tax(50000, 1000, 500)
print(f"T4 tax: ${t4_tax:.2f}")
This example assumes that the individual has a taxable income of $50,000 and is eligible for $1,000 in deductions and $500 in credits. The function calculates the federal tax based on the income tax rates for the 2021 tax year and adds any applicable provincial tax. It then subtracts the credits to get the final amount of tax payable.
Keep in mind that this is a very simplified example, and the actual calculation of T4 tax may be more complex, depending on your individual circumstances. You may need to consider additional factors, such as your province of residence, your tax credits and deductions, and any other employment income or benefits you received during the tax year.