How your take-home pay is worked out (2026)
In Canada you pay federal income tax plus your province's income tax, and two payroll deductions: CPP (Canada Pension Plan, or QPP in Quebec) and EI (Employment Insurance). Quebec residents also pay QPIP and get a 16.5% reduction on federal tax (the Quebec abatement). This calculator uses official 2026 rates.
Federal income tax 2026
| Taxable income | Rate |
|---|---|
| $0 – $58,523 | 14% |
| $58,523 – $117,045 | 20.5% |
| $117,045 – $181,440 | 26% |
| $181,440 – $258,482 | 29% |
| Over $258,482 | 33% |
Everyone gets the Basic Personal Amount ($16,452 federally in 2026) as a non-refundable credit, so the first slice of income is effectively tax-free.
Provincial tax
Each province sets its own brackets and Basic Personal Amount. Ontario adds a surtax on higher tax amounts plus a Health Premium; Alberta has the highest Basic Personal Amount ($22,769); Quebec runs its own system with higher rates but a 16.5% federal abatement.
CPP/QPP and EI
- CPP (outside Quebec): 5.95% on earnings between $3,500 and $74,600, plus CPP2 at 4% up to $85,000.
- QPP (Quebec): 6.30% on the same base, plus QPP2.
- EI: 1.63% up to $68,900 (1.30% in Quebec, which also has QPIP at 0.494%).
Example: $70,000 in Ontario (2026)
Federal tax is about $8,243, Ontario tax (with the Health Premium) about $4,140, CPP $3,957 and EI $1,123 — leaving a take-home of roughly $52,538 a year, about $4,378 a month.
What this calculator does not include
- RRSP contributions, union dues, and other deductions or credits beyond the Basic Personal Amount.
- Only Ontario, BC, Alberta and Quebec are modelled so far — more provinces are coming.
- It treats salary as taxable income (before deductions).
Frequently asked questions
Why is Quebec different?
Quebec runs its own income tax and pension plan (QPP) and parental insurance (QPIP). To compensate, Quebec residents reduce their federal tax by 16.5% (the Quebec abatement). This calculator handles all of that.
Is CPP taken from my pay?
Yes. CPP (or QPP) and EI are deducted from every pay cheque, on top of income tax.
What's the Ontario Health Premium?
A charge added to Ontario tax based on your income, up to $900 a year. This calculator includes it.
Are these 2026 rates?
Yes — federal and provincial brackets, BPAs, CPP/QPP and EI are all the confirmed 2026 figures. For an exact figure use the CRA Payroll Deductions Online Calculator.
More Canada calculators
This calculator provides estimates for 2026 based on published CRA and provincial rates and is for general information only — it is not financial or tax advice. It treats salary as taxable income and excludes RRSP and other deductions/credits beyond the Basic Personal Amount. For an exact figure use the CRA PDOC. Sources: CRA, Ontario/BC/Alberta/Revenu Québec.