canada-tax-toolkit 0.2.0__tar.gz

canada_tax_toolkit-0.2.0/LICENSE

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+MIT License
+
+Copyright (c) 2026 Ronit Gupta
+
+Permission is hereby granted, free of charge, to any person obtaining a copy
+of this software and associated documentation files (the "Software"), to deal
+in the Software without restriction, including without limitation the rights
+to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+copies of the Software, and to permit persons to whom the Software is
+furnished to do so, subject to the following conditions:
+
+The above copyright notice and this permission notice shall be included in all
+copies or substantial portions of the Software.
+
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
+AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
+SOFTWARE.

canada_tax_toolkit-0.2.0/PKG-INFO

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+Metadata-Version: 2.4
+Name: canada-tax-toolkit
+Version: 0.2.0
+Summary: Simple, transparent Canadian (federal + Ontario) income tax calculations
+Author: Ronit Gupta
+License: MIT
+Keywords: tax,canada,ontario,cra,finance
+Requires-Python: >=3.9
+Description-Content-Type: text/markdown
+License-File: LICENSE
+Dynamic: license-file
+
+# Canada Tax Toolkit 🇨🇦
+
+Simple, transparent Python tools for Canadian personal income tax — starting with **federal + Ontario** for the **2026** tax year.
+
+Every rate lives in one readable file (`src/canadatax/rates.py`), and every calculation is tested against published worked examples.
+**👉 Try it online: [ronitgupta43-ops.github.io/canada-tax-toolkit](https://ronitgupta43-ops.github.io/canada-tax-toolkit/)**
+
+## Quick start
+
+```bash
+git clone https://github.com/ronitgupta43-ops/canada-tax-toolkit.git
+cd canada-tax-toolkit
+pip install -e .
+python -m canadatax 75000
+```
+
+```python
+from canadatax import total_tax
+print(total_tax(75_000))
+```
+
+## What's included (v0.1)
+
+- 2026 federal brackets (14% lowest rate) and basic personal amount, including the high-income phase-out
+- 2026 Ontario brackets, basic personal amount and two-tier surtax
+- Average and marginal tax rates
+- Command-line tool
+- Ontario low-income tax reduction and Ontario Health Premium
+- Free web calculator that runs in your browser
+
+## Roadmap — contributions welcome!
+
+- [x] Ontario tax reduction (low-income)
+- [x] Ontario Health Premium
+- [x] CPP / EI contributions and credits
+- [ ] 2025 rates (with the blended 14.5% federal rate)
+- [ ] Other provinces (BC, Alberta, Quebec…)
+- [ ] RRSP deduction "what if" calculator
+
+## Disclaimer
+
+This is an educational tool, not tax advice. Always confirm with CRA or a tax professional.
+
+## License
+
+MIT

canada_tax_toolkit-0.2.0/README.md

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+# Canada Tax Toolkit 🇨🇦
+
+Simple, transparent Python tools for Canadian personal income tax — starting with **federal + Ontario** for the **2026** tax year.
+
+Every rate lives in one readable file (`src/canadatax/rates.py`), and every calculation is tested against published worked examples.
+**👉 Try it online: [ronitgupta43-ops.github.io/canada-tax-toolkit](https://ronitgupta43-ops.github.io/canada-tax-toolkit/)**
+
+## Quick start
+
+```bash
+git clone https://github.com/ronitgupta43-ops/canada-tax-toolkit.git
+cd canada-tax-toolkit
+pip install -e .
+python -m canadatax 75000
+```
+
+```python
+from canadatax import total_tax
+print(total_tax(75_000))
+```
+
+## What's included (v0.1)
+
+- 2026 federal brackets (14% lowest rate) and basic personal amount, including the high-income phase-out
+- 2026 Ontario brackets, basic personal amount and two-tier surtax
+- Average and marginal tax rates
+- Command-line tool
+- Ontario low-income tax reduction and Ontario Health Premium
+- Free web calculator that runs in your browser
+
+## Roadmap — contributions welcome!
+
+- [x] Ontario tax reduction (low-income)
+- [x] Ontario Health Premium
+- [x] CPP / EI contributions and credits
+- [ ] 2025 rates (with the blended 14.5% federal rate)
+- [ ] Other provinces (BC, Alberta, Quebec…)
+- [ ] RRSP deduction "what if" calculator
+
+## Disclaimer
+
+This is an educational tool, not tax advice. Always confirm with CRA or a tax professional.
+
+## License
+
+MIT

canada_tax_toolkit-0.2.0/pyproject.toml

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+[build-system]
+requires = ["setuptools>=61"]
+build-backend = "setuptools.build_meta"
+
+[project]
+name = "canada-tax-toolkit"
+version = "0.2.0"
+description = "Simple, transparent Canadian (federal + Ontario) income tax calculations"
+readme = "README.md"
+license = {text = "MIT"}
+authors = [{name = "Ronit Gupta"}]
+requires-python = ">=3.9"
+keywords = ["tax", "canada", "ontario", "cra", "finance"]
+
+[tool.setuptools.packages.find]
+where = ["src"]
+
+[tool.pytest.ini_options]
+pythonpath = ["src"]

canada_tax_toolkit-0.2.0/setup.cfg

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+[egg_info]
+tag_build = 
+tag_date = 0
+

canada_tax_toolkit-0.2.0/src/canada_tax_toolkit.egg-info/PKG-INFO

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+Metadata-Version: 2.4
+Name: canada-tax-toolkit
+Version: 0.2.0
+Summary: Simple, transparent Canadian (federal + Ontario) income tax calculations
+Author: Ronit Gupta
+License: MIT
+Keywords: tax,canada,ontario,cra,finance
+Requires-Python: >=3.9
+Description-Content-Type: text/markdown
+License-File: LICENSE
+Dynamic: license-file
+
+# Canada Tax Toolkit 🇨🇦
+
+Simple, transparent Python tools for Canadian personal income tax — starting with **federal + Ontario** for the **2026** tax year.
+
+Every rate lives in one readable file (`src/canadatax/rates.py`), and every calculation is tested against published worked examples.
+**👉 Try it online: [ronitgupta43-ops.github.io/canada-tax-toolkit](https://ronitgupta43-ops.github.io/canada-tax-toolkit/)**
+
+## Quick start
+
+```bash
+git clone https://github.com/ronitgupta43-ops/canada-tax-toolkit.git
+cd canada-tax-toolkit
+pip install -e .
+python -m canadatax 75000
+```
+
+```python
+from canadatax import total_tax
+print(total_tax(75_000))
+```
+
+## What's included (v0.1)
+
+- 2026 federal brackets (14% lowest rate) and basic personal amount, including the high-income phase-out
+- 2026 Ontario brackets, basic personal amount and two-tier surtax
+- Average and marginal tax rates
+- Command-line tool
+- Ontario low-income tax reduction and Ontario Health Premium
+- Free web calculator that runs in your browser
+
+## Roadmap — contributions welcome!
+
+- [x] Ontario tax reduction (low-income)
+- [x] Ontario Health Premium
+- [x] CPP / EI contributions and credits
+- [ ] 2025 rates (with the blended 14.5% federal rate)
+- [ ] Other provinces (BC, Alberta, Quebec…)
+- [ ] RRSP deduction "what if" calculator
+
+## Disclaimer
+
+This is an educational tool, not tax advice. Always confirm with CRA or a tax professional.
+
+## License
+
+MIT

canada_tax_toolkit-0.2.0/src/canada_tax_toolkit.egg-info/SOURCES.txt

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+LICENSE
+README.md
+pyproject.toml
+src/canada_tax_toolkit.egg-info/PKG-INFO
+src/canada_tax_toolkit.egg-info/SOURCES.txt
+src/canada_tax_toolkit.egg-info/dependency_links.txt
+src/canada_tax_toolkit.egg-info/top_level.txt
+src/canadatax/__init__.py
+src/canadatax/__main__.py
+src/canadatax/calculator.py
+src/canadatax/rates.py
+tests/test_calculator.py
+tests/test_health_premium.py
+tests/test_payroll.py
+tests/test_tax_reduction.py

canada_tax_toolkit-0.2.0/src/canada_tax_toolkit.egg-info/dependency_links.txt

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+

canada_tax_toolkit-0.2.0/src/canada_tax_toolkit.egg-info/top_level.txt

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+canadatax

canada_tax_toolkit-0.2.0/src/canadatax/__init__.py

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+"""canadatax: simple, transparent Canadian income tax calculations."""
+
+from .calculator import (
+    bracket_tax,
+    cpp_contributions,
+    ei_premium,
+    federal_bpa,
+    federal_tax,
+    ontario_health_premium,
+    ontario_tax,
+    take_home,
+    total_tax,
+)
+
+__version__ = "0.2.0"
+__all__ = [
+    "bracket_tax", "cpp_contributions", "ei_premium", "federal_bpa", "federal_tax",
+    "ontario_health_premium", "ontario_tax", "take_home", "total_tax",
+]

canada_tax_toolkit-0.2.0/src/canadatax/__main__.py

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+"""Command line: python -m canadatax 75000 [year]"""
+
+import sys
+from .calculator import take_home
+
+
+def main():
+    if len(sys.argv) < 2:
+        print("Usage: python -m canadatax <employment_income> [year]")
+        sys.exit(1)
+    income = float(sys.argv[1].replace(",", ""))
+    year = int(sys.argv[2]) if len(sys.argv) > 2 else 2026
+    r = take_home(income, year)
+    print(f"Ontario employee, {r['year']} tax year")
+    print(f"Employment income: ${r['employment_income']:>12,.2f}")
+    print(f"Federal tax:       ${r['federal']:>12,.2f}")
+    print(f"Ontario tax:       ${r['ontario']:>12,.2f}")
+    print(f"Health premium:    ${r['ontario_health_premium']:>12,.2f}")
+    print(f"CPP:               ${r['cpp']:>12,.2f}")
+    print(f"CPP2:              ${r['cpp2']:>12,.2f}")
+    print(f"EI:                ${r['ei']:>12,.2f}")
+    print(f"Total deductions:  ${r['total_deductions']:>12,.2f}")
+    print(f"Take-home pay:     ${r['take_home']:>12,.2f}")
+    print(f"Per month:         ${r['monthly_take_home']:>12,.2f}")
+
+
+if __name__ == "__main__":
+    main()

canada_tax_toolkit-0.2.0/src/canadatax/calculator.py

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+"""Federal and Ontario personal income tax calculator."""
+
+from .rates import FEDERAL, ONTARIO, PAYROLL
+
+
+def _rates(table, year):
+    if year not in table:
+        raise ValueError(f"No rates for {year}. Available: {sorted(table)}")
+    return table[year]
+
+
+def bracket_tax(income, brackets):
+    """Apply progressive brackets to an income amount."""
+    tax, lower = 0.0, 0.0
+    for upper, rate in brackets:
+        if upper is None or income <= upper:
+            return tax + (income - lower) * rate
+        tax += (upper - lower) * rate
+        lower = upper
+    return tax
+
+
+def federal_bpa(net_income, year=2026):
+    """Federal basic personal amount, phased down for high incomes."""
+    r = _rates(FEDERAL, year)
+    start, end = r["bpa_phaseout_start"], r["bpa_phaseout_end"]
+    extra = r["bpa_max"] - r["bpa_min"]
+    if net_income <= start:
+        return r["bpa_max"]
+    if net_income >= end:
+        return r["bpa_min"]
+    return r["bpa_min"] + extra * (end - net_income) / (end - start)
+
+
+def federal_tax(taxable_income, year=2026, other_credits=0):
+    """Basic federal tax after the basic personal amount credit.
+
+    other_credits: extra credit amounts (like base CPP and EI) that earn
+    a credit at the same rate as the basic personal amount.
+    """
+    r = _rates(FEDERAL, year)
+    gross = bracket_tax(taxable_income, r["brackets"])
+    credit = (federal_bpa(taxable_income, year) + other_credits) * r["credit_rate"]
+    return round(max(0.0, gross - credit), 2)
+
+
+def ontario_basic_tax(taxable_income, year=2026, other_credits=0):
+    """Ontario tax after non-refundable credits, before surtax."""
+    r = _rates(ONTARIO, year)
+    gross = bracket_tax(taxable_income, r["brackets"])
+    credit = (r["bpa"] + other_credits) * r["credit_rate"]
+    return max(0.0, gross - credit)
+
+
+def ontario_surtax(basic_tax, year=2026):
+    r = _rates(ONTARIO, year)
+    return sum(max(0.0, basic_tax - t) * rate for t, rate in r["surtax"])
+
+
+def ontario_tax(taxable_income, year=2026, other_credits=0):
+    """Ontario tax including surtax, after the low-income tax reduction.
+
+    The Ontario Health Premium is calculated separately.
+    """
+    r = _rates(ONTARIO, year)
+    basic = ontario_basic_tax(taxable_income, year, other_credits)
+    tax = basic + ontario_surtax(basic, year)
+    reduction = max(0, 2 * r["tax_reduction"] - tax)
+    reduction = min(reduction, tax)
+    return round(tax - reduction, 2)
+
+
+def ontario_health_premium(taxable_income, year=2026):
+    """Ontario Health Premium: $0 up to $900, based on taxable income.
+
+    Each level ramps up at a rate above its threshold, then flattens at a cap.
+    """
+    r = _rates(ONTARIO, year)
+    premium = 0.0
+    for threshold, rate, base, cap in r["health_premium"]:
+        if taxable_income > threshold:
+            premium = min(cap, base + rate * (taxable_income - threshold))
+    return round(premium, 2)
+
+
+def cpp_contributions(employment_income, year=2026):
+    """Employee CPP and CPP2 contributions on employment income.
+
+    Returns a dict:
+      cpp       - CPP on earnings between the exemption and the YMPE
+      cpp2      - CPP2 on earnings between the YMPE and the YAMPE
+      base      - part of cpp that earns a tax credit
+      enhanced  - part of cpp that is a deduction from income
+    """
+    r = _rates(PAYROLL, year)
+    pensionable = min(employment_income, r["ympe"]) - r["cpp_exemption"]
+    pensionable = max(0.0, pensionable)
+    cpp = round(pensionable * r["cpp_rate"], 2)
+    base = round(pensionable * r["cpp_base_rate"], 2)
+    cpp2_earnings = max(0.0, min(employment_income, r["yampe"]) - r["ympe"])
+    cpp2 = round(cpp2_earnings * r["cpp2_rate"], 2)
+    return {"cpp": cpp, "cpp2": cpp2, "base": base, "enhanced": round(cpp - base, 2)}
+
+
+def ei_premium(employment_income, year=2026):
+    """Employee EI premium on employment income."""
+    r = _rates(PAYROLL, year)
+    return round(min(employment_income, r["ei_max_insurable"]) * r["ei_rate"], 2)
+
+
+def total_tax(taxable_income, year=2026, other_credits=0):
+    """Summary of federal + Ontario tax for one taxable income."""
+    def tax_at(income):
+        return (federal_tax(income, year, other_credits)
+                + ontario_tax(income, year, other_credits)
+                + ontario_health_premium(income, year))
+
+    fed = federal_tax(taxable_income, year, other_credits)
+    on = ontario_tax(taxable_income, year, other_credits)
+    ohp = ontario_health_premium(taxable_income, year)
+    total = round(fed + on + ohp, 2)
+    return {
+        "year": year,
+        "income": taxable_income,
+        "federal": fed,
+        "ontario": on,
+        "ontario_health_premium": ohp,
+        "total": total,
+        "after_tax_income": round(taxable_income - total, 2),
+        "average_rate": round(total / taxable_income, 4) if taxable_income else 0.0,
+        "marginal_rate": round((tax_at(taxable_income + 100) - total) / 100, 4),
+    }
+
+
+def take_home(employment_income, year=2026):
+    """Take-home pay for an Ontario employee: income tax, CPP and EI.
+
+    How CPP and EI affect income tax:
+      - the enhanced part of CPP and all of CPP2 are deducted from income
+      - base CPP and EI premiums earn non-refundable tax credits
+    """
+    c = cpp_contributions(employment_income, year)
+    ei = ei_premium(employment_income, year)
+    taxable = round(employment_income - c["enhanced"] - c["cpp2"], 2)
+    credits = c["base"] + ei
+    t = total_tax(taxable, year, other_credits=credits)
+    deductions = round(t["total"] + c["cpp"] + c["cpp2"] + ei, 2)
+    return {
+        "year": year,
+        "employment_income": employment_income,
+        "taxable_income": taxable,
+        "federal": t["federal"],
+        "ontario": t["ontario"],
+        "ontario_health_premium": t["ontario_health_premium"],
+        "income_tax": t["total"],
+        "cpp": c["cpp"],
+        "cpp2": c["cpp2"],
+        "ei": ei,
+        "total_deductions": deductions,
+        "take_home": round(employment_income - deductions, 2),
+        "monthly_take_home": round((employment_income - deductions) / 12, 2),
+        "average_rate": round(deductions / employment_income, 4) if employment_income else 0.0,
+    }

canada_tax_toolkit-0.2.0/src/canadatax/rates.py

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+"""Tax rates and thresholds by year.
+
+Sources (2026): CRA federal rates, CRA T4127 payroll formulas, Ontario TD1ON.
+When adding a new year, copy the latest block, update every number,
+and add a test that checks a known example from an official source.
+"""
+
+FEDERAL = {
+    2026: {
+        # (upper limit of bracket, rate); None = no upper limit
+        "brackets": [
+            (58_523, 0.14),
+            (117_045, 0.205),
+            (181_440, 0.26),
+            (258_482, 0.29),
+            (None, 0.33),
+        ],
+        "bpa_max": 16_452,   # basic personal amount, full
+        "bpa_min": 14_829,   # BPA once income reaches top bracket
+        "bpa_phaseout_start": 181_440,
+        "bpa_phaseout_end": 258_482,
+        "credit_rate": 0.14,
+    },
+}
+
+ONTARIO = {
+    2026: {
+        "brackets": [
+            (53_891, 0.0505),
+            (107_785, 0.0915),
+            (150_000, 0.1116),   # not indexed for inflation
+            (220_000, 0.1216),   # not indexed for inflation
+            (None, 0.1316),
+        ],
+        "bpa": 12_989,
+        "credit_rate": 0.0505,
+        # surtax is charged on basic Ontario tax, not on income
+        "surtax": [(5_818, 0.20), (7_446, 0.36)],
+        # Ontario tax reduction (low income), basic amount for an individual
+        # Source: CRA form ON428, Part C; EY Ontario Budget 2026 summary
+        "tax_reduction": 300,
+        # Ontario Health Premium: (threshold, rate, base, cap)
+        # Source: Ontario Taxation Act, 2007; CRA form ON428
+        "health_premium": [
+            (20_000, 0.06, 0, 300),
+            (36_000, 0.06, 300, 450),
+            (48_000, 0.25, 450, 600),
+            (72_000, 0.25, 600, 750),
+            (200_000, 0.25, 750, 900),
+        ],
+    },
+}
+
+# Employee payroll contributions: CPP and EI
+# Source: CRA 2026 CPP and EI rates and maximums
+PAYROLL = {
+    2026: {
+        "cpp_exemption": 3_500,
+        "ympe": 74_600,           # CPP ceiling
+        "cpp_rate": 0.0595,       # employee rate, $3,500 to YMPE
+        "cpp_base_rate": 0.0495,  # part of cpp_rate that earns a tax credit;
+                                  # the other 1% is a deduction from income
+        "yampe": 85_000,          # CPP2 ceiling
+        "cpp2_rate": 0.04,        # employee rate, YMPE to YAMPE (a deduction)
+        "ei_max_insurable": 68_900,
+        "ei_rate": 0.0163,        # EI premiums earn a tax credit
+    },
+}

canada_tax_toolkit-0.2.0/tests/test_calculator.py

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+"""Tests use worked examples published by tax reference sites / CRA formulas."""
+
+from canadatax import bracket_tax, federal_bpa, federal_tax, ontario_tax
+from canadatax.calculator import ontario_basic_tax, ontario_surtax
+from canadatax.rates import FEDERAL
+
+
+def test_first_federal_bracket():
+    # 14% of the first $58,523 = $8,193.22
+    assert round(bracket_tax(58_523, FEDERAL[2026]["brackets"]), 2) == 8193.22
+
+
+def test_federal_bpa_phaseout():
+    assert federal_bpa(100_000) == 16_452
+    assert federal_bpa(300_000) == 14_829
+    assert 14_829 < federal_bpa(220_000) < 16_452
+
+
+def test_ontario_150k_basic_and_surtax():
+    basic = ontario_basic_tax(150_000)
+    assert round(basic, 2) == 11708.05
+    assert round(ontario_surtax(basic), 2) == round(1178.01 + 1534.34, 2)
+
+
+def test_ontario_75k_no_surtax():
+    basic = ontario_basic_tax(75_000)
+    assert abs(basic - 3997.03) < 0.01  # source rounds each bracket
+
+
+def test_low_income_pays_no_tax():
+    assert federal_tax(10_000) == 0
+    assert ontario_tax(10_000) == 0
+
+
+def test_unknown_year_raises():
+    try:
+        federal_tax(50_000, year=1999)
+    except ValueError:
+        return
+    raise AssertionError("expected ValueError")

canada_tax_toolkit-0.2.0/tests/test_health_premium.py

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+"""Ontario Health Premium tests. Expected values calculated by hand from the ON428 table."""
+
+from canadatax import ontario_health_premium, total_tax
+
+
+def test_ohp_examples():
+    cases = {
+        18_000: 0,      # below $20,000
+        22_000: 120,    # 6% of $2,000
+        30_000: 300,    # flat $300 band
+        37_000: 360,    # $300 + 6% of $1,000
+        48_200: 500,    # $450 + 25% of $200
+        100_000: 750,   # flat $750 band
+        250_000: 900,   # maximum
+    }
+    for income, expected in cases.items():
+        assert ontario_health_premium(income) == expected, income
+
+
+def test_ohp_boundaries():
+    assert ontario_health_premium(20_000) == 0
+    assert ontario_health_premium(25_000) == 300
+    assert ontario_health_premium(38_500) == 450
+    assert ontario_health_premium(48_600) == 600
+    assert ontario_health_premium(72_600) == 750
+    assert ontario_health_premium(200_600) == 900
+
+
+def test_total_includes_ohp():
+    r = total_tax(75_000)
+    assert r["ontario_health_premium"] == 750
+    assert r["total"] == round(r["federal"] + r["ontario"] + 750, 2)

canada_tax_toolkit-0.2.0/tests/test_payroll.py

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+"""CPP, CPP2 and EI tests. Expected values calculated by hand from 2026 CRA rates."""
+
+from canadatax import cpp_contributions, ei_premium, take_home, total_tax
+
+
+def test_cpp_50k():
+    c = cpp_contributions(50_000)
+    assert c["cpp"] == 2766.75      # (50,000 - 3,500) x 5.95%
+    assert c["cpp2"] == 0           # below the YMPE
+    assert c["base"] == 2301.75     # (50,000 - 3,500) x 4.95%
+    assert c["enhanced"] == 465.00  # (50,000 - 3,500) x 1%
+
+
+def test_cpp_80k():
+    c = cpp_contributions(80_000)
+    assert c["cpp"] == 4230.45      # maximum
+    assert c["cpp2"] == 216.00      # (80,000 - 74,600) x 4%
+
+
+def test_cpp_maximums():
+    c = cpp_contributions(150_000)
+    assert c["cpp"] == 4230.45
+    assert c["cpp2"] == 416.00
+
+
+def test_cpp_below_exemption():
+    assert cpp_contributions(3_000)["cpp"] == 0
+
+
+def test_ei():
+    assert ei_premium(50_000) == 815.00     # 50,000 x 1.63%
+    assert ei_premium(80_000) == 1123.07    # maximum
+
+
+def test_take_home_adds_up():
+    r = take_home(75_000)
+    parts = r["income_tax"] + r["cpp"] + r["cpp2"] + r["ei"]
+    assert abs(r["total_deductions"] - parts) < 0.02
+    assert abs(r["take_home"] - (75_000 - r["total_deductions"])) < 0.02
+
+
+def test_cpp_and_ei_lower_income_tax():
+    # credits and the CPP deduction mean less income tax than ignoring them
+    assert take_home(75_000)["income_tax"] < total_tax(75_000)["total"]

canada_tax_toolkit-0.2.0/tests/test_tax_reduction.py

@@ -0,0 +1,26 @@
+"""Ontario low-income tax reduction tests. Expected values calculated by hand.
+
+Hand calculations round each step to the cent (like the ON428 form),
+so results may differ from the code by a cent.
+"""
+
+from canadatax import ontario_tax
+
+
+def close(a, b):
+    return abs(a - b) < 0.02
+
+
+def test_reduction_examples():
+    assert ontario_tax(15_000) == 0                # reduction bigger than tax
+    assert close(ontario_tax(20_000), 108.12)      # partial reduction
+    assert close(ontario_tax(22_000), 310.12)      # partial reduction
+    assert close(ontario_tax(30_000), 859.06)      # no reduction
+
+
+def test_no_ontario_tax_up_to_18930():
+    assert ontario_tax(18_900) == 0
+
+
+def test_no_reduction_above_24870():
+    assert close(ontario_tax(25_000), 606.56)