Canadian Take-Home
Pay Calculator
Calculate your exact net salary after federal tax, provincial tax, CPP, and EI deductions — for every province and territory in Canada.
Your details
Your results
| Gross salary | — |
| Other income | — |
| RRSP deduction | — |
| Federal income tax | — |
| Provincial income tax | — |
| CPP contributions | — |
| EI premiums | — |
| Total deductions | — |
| Annual take-home | — |
Your tax rates
Based on your salary and province. Marginal rate is the rate on your last dollar earned. Effective rate is your actual average rate across all income.
2026 tax brackets
Your income falls into the highlighted bracket. Canada uses a progressive tax system — only the income within each bracket is taxed at that rate.
Federal brackets
| Income range | Rate | Tax on bracket |
|---|
Ontario brackets
| Income range | Rate | Tax on bracket |
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* Federal basic personal amount: $16,129 (2026). Basic personal amounts vary by province. Surtaxes apply in Ontario and PEI. Quebec administers its own tax separately and collects federal tax abatement.
Frequently asked questions
Common questions about Canadian income tax and take-home pay.
How is Canadian income tax calculated?
Canada uses a progressive tax system with both federal and provincial layers. Each layer has its own brackets — only the income within each bracket is taxed at that rate. You also pay CPP contributions and EI premiums on employment income. The federal basic personal amount ($16,129 in 2025) is a non-refundable tax credit that reduces your federal tax owing.
What is CPP and how much do I pay?
The Canada Pension Plan (CPP) is a mandatory retirement savings program. In 2025, employees contribute 5.95% of pensionable earnings between the basic exemption ($3,500) and the Year's Maximum Pensionable Earnings ($71,300), up to a maximum of $4,034.10 per year. A second CPP tier (CPP2) applies earnings between $71,300 and $81,900 at 4%. Self-employed individuals pay both the employee and employer portions (double).
What is EI and how much do I pay?
Employment Insurance (EI) premiums are 1.64% of insurable earnings in 2026, up to the annual maximum insurable earnings of $65,700, giving a maximum employee premium of $1,077.48 per year. Self-employed individuals are generally exempt but can opt in voluntarily.
What is the difference between marginal and effective tax rate?
Your marginal rate is the tax rate applied to your last (highest) dollar of income — it tells you how much tax you'd pay on a raise or bonus. Your effective rate is your total tax divided by total income — it represents your true average tax burden. Because Canada's system is progressive, your effective rate is always lower than your marginal rate.
How does an RRSP contribution reduce my taxes?
RRSP (Registered Retirement Savings Plan) contributions are deducted from your taxable income before tax is calculated. This means a $10,000 RRSP contribution saves you roughly your marginal tax rate × $10,000. For example, at a 43% combined marginal rate, a $10,000 RRSP contribution saves approximately $4,300 in taxes. Your 2026 RRSP limit is 18% of your 2024 earned income up to $32,490.
Why is Quebec different?
Quebec administers its own provincial income tax separately from the federal government. Quebec residents receive a 16.5% federal abatement (reduction in federal tax), while paying higher provincial rates that fund Quebec-specific programs like the Quebec Pension Plan (QPP) instead of CPP. This calculator includes Quebec's 2026 provincial brackets and the federal abatement.
Which province has the lowest income tax?
Alberta has the lowest provincial income tax in Canada — a flat 10% on the first bracket with no provincial surtax. Nunavut and Northwest Territories also have relatively low rates. Quebec and Nova Scotia have some of the highest combined rates at higher income levels.
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View all 16 tools →Tax calculations are estimates based on current CRA rules — not tax or accounting advice. Verify with a CPA or at canada.ca before filing. Terms →
How Canadian income tax works
Canada uses a progressive tax system — understanding it can save you thousands.
Canada taxes each dollar at its bracket rate — not your whole income at the top rate. Earning $100K doesn't mean paying 26% on all of it. Only the income within each bracket is taxed at that rate. Your effective tax rate is always lower than your marginal rate.
You pay two separate income taxes: federal (same for all Canadians) and provincial (varies by province). Quebec collects its own tax separately. Alberta has the lowest combined rates due to no provincial surtax. Ontario applies a surtax on higher provincial tax amounts.
In 2026, you contribute 5.95% of income between $3,500 and $71,300 (YMPE), to a maximum of $4,034.10. CPP2 adds 4% on income from $71,300 to $81,900. Your employer matches your CPP1 contribution dollar-for-dollar — a 100% instant return on that portion.
Employment Insurance premiums are 1.64% on insurable earnings up to $65,700 — a maximum of $1,077.48/year. Employers pay 1.4× what employees pay. EI provides up to 55% of insurable earnings if you lose your job, up to a maximum of $695/week in 2026.
Contributing to your RRSP reduces your taxable income dollar-for-dollar. If you're in a 43% combined bracket and contribute $10,000, you save $4,300 in taxes immediately. The 2026 RRSP limit is $32,490 (18% of 2025 earned income, whichever is lower).
On a $100,000 salary, the province you live in can mean a difference of over $8,000/year in take-home pay. Alberta's combined top rate is 48% vs Quebec's 53.3%. Use this calculator to compare provinces before accepting a job offer in a new city.