Free tool · Cross-border 🇵🇰🇨🇦
Foreign Tax Credit Calculator
Earn rent in Pakistan and file taxes in Canada? See how much of the Pakistan tax you can credit on your Canadian return, the extra Canadian tax you'll owe, and any foreign tax you can't recover.
Extra Canadian tax owing on this rental (after credit)
$3,723
Foreign tax credit
$4,390
Total tax on rental
$8,114
Effective rate
32.9%
| Rental income (in CAD) | $24,648 |
| Pakistan tax paid (in CAD) | $4,390 |
| Canadian tax on the rental | $8,114 |
| Foreign tax credit allowed | − $4,390 |
| Additional Canadian tax owing | $3,723 |
Keep this calculation
A PDF showing the credit, the Canadian tax still owing, and any Pakistani tax you cannot recover.
Estimate. Canada taxes worldwide income; the foreign tax credit is limited to the Canadian tax on the same foreign income (a simplified s.126 limit). Excludes rental expenses/CCA and other credits. Not tax advice.
How the foreign tax credit works
Canada taxes your worldwide income, including Pakistan rent. To avoid double taxation, you get a credit for the Pakistan tax you paid — but only up to the Canadian tax on that same income. If Pakistan withheld more than Canada would charge, the excess usually can't be recovered.
Built for the diaspora
This is the calculation most tools skip. Pair it with our Pakistan rental tax and Canada income tax calculators for the full picture.
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