The best high-interest savings accounts in Canada for 2025 + MORE Feb 4th

Calculating net income for tax and OAS purposes

I like your definition of net income, Kevin. It sounds logical. But it is not the definition the Canada Revenue Agency (CRA) uses. The general, very abbreviated, format for calculating personal income tax is shown below. You will see how net income is calculated. 

Total income – Deductions = Net income

(Start of OAS clawback threshold, $93,454 for 2025, is measured here.) 

Net income – Tax credits = Federal tax

Federal tax x Provincial tax rate = Provincial tax

Total tax = Federal + Provincial + Federal and provincial surtaxes

I’m showing the skinny tax return so you can see how your personal tax is calculated and not just your “net income.” It’s important to see because for most people income tax will be the largest expense they will ever have…

Find the best and most up-to-date savings rates in Canada using the comparison tool below. Plus, use the filters to assess your estimated return based on the size of your balance.

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Best high-interest savings account rates in Canada

Generally, savings accounts offer very low interest rates. So, if you want to earn on your deposits (rather than simply using your account as a temporary “holding tank” or directing to longer-term saving and investing vehicles), a savings account with a high interest rate is a no-brainer…