Tax-free savings calculator - assumptions
- This calculator uses the future value of a Tax-Free Savings Account to determine both the tax free and taxable results. It assumes that the contribution is made at the beginning of the period selected.
- Taxes are based on the annual income entered with no additional deductions or earnings.
- The initial contribution (if selected) will be a lump sum deposited at the beginning of the year.
- Taxes are applied at the end of each year based on interest earned throughout the year.
- The calculator uses 2013 Federal and Provincial tax rates as of January 2013.
- Annual income assumes that this is your taxable income before taxes and deductions. Your annual income is used to estimate your combined federal/provincial marginal tax rate for the purposes of this calculator.
- The calculator makes no assumptions about tax credits, and assumes that your tax credits are not sufficient to completely eliminate your taxes. It applies to everyone, usually no matter how much they can claim in tax credits
- Tax-free savings account and taxable investment results are estimates and do not reflect actual returns.