About the Canada Take-Home Pay Calculator 2026
In Canada your paycheque is reduced by four things: federal income tax, provincial or territorial income tax, Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums. This calculator applies the official 2026 figures published by the Canada Revenue Agency, including the new 14% lowest federal rate, the 2026 basic personal amounts, the CPP and CPP2 ceilings and the EI maximum.
Provincial tax is calculated with each province's own brackets and credits. Ontario includes the surtax, the Ontario tax reduction and the Ontario Health Premium; British Columbia includes the BC tax reduction and the higher 5.60% lowest rate from Budget 2026.
How to use
- Choose Annual salary and enter your gross pay before deductions, or switch to Hourly wage and enter your rate and weekly hours.
- Select the province or territory where you live on December 31 โ that is the province that taxes your whole year's income.
- Read your take-home pay per year, month, two weeks and week, plus the line-by-line breakdown of taxes, CPP and EI.
- Check the marginal tax rate to see how much of a raise or bonus you would keep, and the table to compare other salaries in your province.
Federal tax, CPP and EI in 2026
| Federal taxable income | Rate |
|---|---|
| up to $58,523 | 14% |
| $58,523 โ $117,045 | 20.5% |
| $117,045 โ $181,440 | 26% |
| $181,440 โ $258,482 | 29% |
| over $258,482 | 33% |
The federal basic personal amount is $16,452 (gradually reduced to $14,829 between $181,440 and $258,482 of net income). Non-refundable credits โ basic personal amount, Canada employment amount ($1,501), base CPP contributions and EI premiums โ reduce your tax at the lowest rate (14% federally, the lowest provincial rate for provincial tax).
| 2026 payroll deduction | Rate | Earnings range | Annual maximum |
|---|---|---|---|
| CPP | 5.95% | $3,500 โ $74,600 | $4,230.45 |
| CPP2 | 4% | $74,600 โ $85,000 | $416.00 |
| EI | 1.63% | up to $68,900 | $1,123.07 |
The enhanced part of CPP (1 of the 5.95 points) and all of CPP2 are deducted from taxable income; the base part of CPP earns a tax credit.
Provincial and territorial tax 2026
| Province / territory | Basic personal amount | Lowest rate | Top rate |
|---|---|---|---|
| Alberta | $22,769 | 8% (to $61,200) | 15% (over $370,220) |
| British Columbia | $13,216 | 5.60% (to $50,363) | 20.5% (over $265,545) |
| Manitoba | $15,780 | 10.8% (to $47,000) | 17.4% (over $100,000) |
| New Brunswick | $13,664 | 9.4% (to $52,333) | 19.5% (over $193,861) |
| Newfoundland and Labrador | $13,094 | 8.7% (to $44,678) | 21.8% (over $1,141,275) |
| Northwest Territories | $18,198 | 5.9% (to $53,003) | 14.05% (over $172,346) |
| Nova Scotia | $11,932 | 8.79% (to $30,995) | 21% (over $157,124) |
| Nunavut | $19,659 | 4% (to $55,801) | 11.5% (over $181,439) |
| Ontario | $12,989 | 5.05% (to $53,891) | 13.16% (over $220,000) |
| Prince Edward Island | $15,000 | 9.5% (to $33,928) | 20% (over $200,000) |
| Saskatchewan | $20,381 | 10.5% (to $54,532) | 14.5% (over $155,805) |
| Yukon | $16,452 | 6.4% (to $58,523) | 15% (over $500,000) |
Ontario adds a surtax of 20% of basic Ontario tax over $5,818 plus 36% over $7,446, and the Ontario Health Premium (up to $900 a year; $750 for taxable income between $72,600 and $200,000). Low earners get the Ontario tax reduction ($300 basic amount). BC gives a tax reduction of up to $690, phased out at 3.56% of net income above $25,570. Manitoba's basic personal amount is phased out between $200,000 and $400,000.
Simplifications: refundable credits and benefits (GST/HST credit, Canada Workers Benefit, Ontario Trillium Benefit, Saskatchewan low-income credit), the low-income tax reductions of New Brunswick, Nova Scotia and Newfoundland and Labrador, union dues, RRSP and other deductions are not included. Quebec residents file a separate provincial return and pay QPP and QPIP instead of CPP and part of EI, so Quebec is not covered.
Sources
- Canada Revenue Agency โ Income tax rates and income thresholds (2026)
- CRA โ T4127 Payroll Deductions Formulas, 122nd edition (January 1, 2026)
- CRA โ T4127, 123rd edition (July 1, 2026): BC, NL and PEI changes
- CRA โ CPP contribution rates, maximums and exemptions
- CRA โ EI premium rates and maximums
This calculator estimates annual tax on employment income for a single person claiming only the basic credits. It is not tax advice; for your exact payroll deductions use the CRA Payroll Deductions Online Calculator or check your T4 and notice of assessment.
FAQ
What is the take-home pay on $75,000 in Ontario in 2026?
About $56,926 a year โ roughly $4,744 a month or $2,189 every two weeks. That is after $8,259 federal tax, $4,446 Ontario tax (including the $750 Health Premium), $4,230 CPP, $16 CPP2 and $1,123 EI.
Did the federal tax rate change in 2026?
Yes. The lowest federal rate fell from 15% to 14% from July 1, 2025 (14.5% for 2025 as a whole), so 2026 is the first full year at 14%. Brackets and the basic personal amount were also indexed by 2.0%. The same 14% rate applies to non-refundable credits such as the basic personal amount, CPP and EI.
Why does my take-home pay go up later in the year?
CPP and EI stop once you hit the annual maximums ($4,230.45 CPP, $416 CPP2 and $1,123.07 EI in 2026). Higher earners usually reach them in the autumn, so their last paycheques of the year are larger. This calculator spreads the annual amounts evenly.
What is the difference between average and marginal tax rate?
The average rate is your total income tax divided by your gross pay. The marginal rate is the tax on your next dollar โ the rate that applies to a raise or bonus. Because Canada taxes income in brackets, moving into a higher bracket only affects the income above the threshold.
Why isn't Quebec included?
Quebec administers its own provincial income tax, the Quebec Pension Plan replaces CPP, Quebec employees pay a reduced EI rate plus the Quebec Parental Insurance Plan, and Quebec residents get a 16.5% abatement on federal tax. Those rules need a separate calculation, so this tool covers the other nine provinces and three territories.