Canada · 2026
Canada Salary calculator
Use this calculator to see your take-home pay in Canada for the 2026 tax year. Enter your gross salary and it works out the federal and provincial income tax, your Canada Pension Plan (CPP) contributions and your Employment Insurance (EI) premiums, then shows what reaches your account. Ontario is the default province. You can switch to British Columbia or Alberta, each of which sets its own provincial tax brackets. Quebec is not covered here because it runs its own pension plan and tax rules.
| Gross salary | $80,000 |
| Income TaxFederal plus Ontario provincial tax, 2026, incl. the Ontario health premium | -$14,128 |
| CPPCanada Pension Plan, employee, incl. CPP2 | -$4,446 |
| EIEmployment Insurance, employee premium | -$1,123 |
| Take-home pay | $60,303 |
How it works
- Start with your gross salary, the figure agreed before any deductions.
- Take off the deductible part of CPP first: the 1% enhanced slice and any CPP2 reduce your taxable income.
- Apply federal income tax in bands: 14% up to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482 and 33% above that. Credits at 14% for the $16,452 basic personal amount, the CPP base slice, EI and the $1,501 Canada employment amount then come off the bill.
- Apply your province tax. Ontario runs 5.05% to 13.16% across five bands, adds a surtax on higher provincial tax and a health premium of up to $900. British Columbia and Alberta have their own bands. Each gives credits for its basic personal amount plus CPP base and EI.
- Take off CPP: 5.95% on earnings between $3,500 and $74,600, plus a second tier (CPP2) of 4% between $74,600 and $85,000. The combined maximum for 2026 is $4,646.45.
- Take off EI: 1.63% on insurable earnings up to $68,900, so the premium is capped at $1,123.07 for the year.
- What remains is your take-home pay. Divide by 12 for a monthly figure.
Take-home = gross - (federal tax + provincial tax) - CPP - EI
The deductible part of CPP (the 1% enhanced slice plus CPP2) comes off your salary to give taxable income. Federal and provincial income tax are each charged on that in progressive bands, reduced by credits for the basic personal amounts, the CPP base slice, EI and (federally) the Canada employment amount. Ontario also adds a surtax above set thresholds and a health premium. Subtract income tax, CPP and EI from your gross salary to reach take-home pay.
- Federal
- Five bands from 14% to 33%, less credits incl. a basic personal amount up to $16,452
- Provincial
- Ontario 5.05% to 13.16% plus surtax and health premium; British Columbia and Alberta have their own bands
- CPP
- 5.95% from $3,500 to $74,600, then CPP2 4% to $85,000; combined max $4,646.45
- EI
- 1.63% on insurable earnings up to $68,900; max premium $1,123.07
Where a salary sits in Canada (2026)
| CPP first earnings ceiling (YMPE) | $74,600 | where the 5.95% rate stops |
| CPP second ceiling (CPP2 / YAMPE) | $85,000 | top of the 4% second tier |
| EI maximum insurable earnings | $68,900 | EI premium capped above this |
| Federal basic personal amount | up to $16,452 | income tested at higher incomes |
Worked example
A $70,000 salary in Ontario for 2026 leaves about $53,786 a year, roughly $4,482 a month, after about $11,134 in combined federal and Ontario income tax (including the $600 Ontario health premium), $3,956.75 of CPP and $1,123.07 of EI. The effective deduction rate is about 23%.
Key facts
- Income tax in Canada is the sum of a federal charge and a separate provincial charge on the same income.
- The first $16,452 of income is effectively free of federal tax through the basic personal amount.
- CPP has two tiers in 2026: 5.95% up to $74,600, then 4% (CPP2) up to $85,000.
- EI premiums stop once your insurable earnings reach $68,900, capping the premium at $1,123.07.
- Ontario, British Columbia and Alberta each set their own brackets, so take-home pay varies by province.
Tips
- An RRSP contribution lowers your taxable income, so it cuts both federal and provincial tax at your marginal rate.
- If you change employer part way through the year, CPP and EI can over-deduct because each job restarts the annual maximum; you reclaim any excess on your tax return.
- In Ontario, watch the surtax: once your provincial tax is high enough, each extra dollar of Ontario tax is multiplied by up to 1.56.
- Alberta has the highest basic personal amount of the three provinces here, so lower salaries keep more there.
Take-home pay by province, $80,000 salary, 2026
| Province | Income Tax | CPP + EI | Take-home | A month |
|---|---|---|---|---|
| Ontario | $14,128 | $5,570 | $60,303 | $5,025 |
| British Columbia | $13,274 | $5,570 | $61,157 | $5,096 |
| Alberta | $13,733 | $5,570 | $60,698 | $5,058 |
Frequently asked questions
Which provinces does this cover?+
Federal tax plus Ontario (the default), British Columbia or Alberta. Switch the region to bc or ab to use that province. Each province sets its own brackets and basic personal amount, so the same salary gives a different result in each. Quebec is not included because it runs the Quebec Pension Plan, a federal tax abatement and a separate EI rate.
What happened to the 15% federal rate?+
The government cut the lowest federal rate from 15% to 14% from 1 July 2025. For the 2025 return the Canada Revenue Agency used a blended 14.5% because the change covered only half the year. From 2026 the full-year rate is 14%, and the basic personal amount and most credits are valued at that rate.
What is CPP2?+
CPP2 is the second tier of Canada Pension Plan contributions. On top of the 5.95% charged up to $74,600, you pay 4% on earnings between $74,600 and $85,000 in 2026, up to an extra $416. It only affects you once your salary passes $74,600, and the whole CPP2 amount is deducted from your taxable income.
Does it include other deductions or credits?+
It applies the basic personal amounts, the Canada employment amount, and the credits and deductions tied to CPP and EI themselves, plus the Ontario surtax and health premium. It does not model RRSP contributions, union dues, a registered pension plan or any other credit, all of which would change the tax you actually pay.
Why might my pay stub be slightly different?+
Employers calculate tax, CPP and EI for each pay period using CRA payroll tables, so per-period rounding can differ by a few dollars from an annual calculation. Taxable benefits, a mid-year raise, or starting a new job (which can reset the CPP and EI maximums) also move the figure. In British Columbia, 2026 withholding only reflects the new 5.60% bottom rate from July, so payslips understate the full-year liability shown here.
How current are these rates?+
They are the federal and provincial brackets, basic personal amounts, CPP and EI figures published for the 2026 tax year, which runs from 1 January to 31 December 2026. Federal amounts are indexed 2.0% over 2025, Ontario 1.9% and Alberta 2.0%; British Columbia indexed brackets 2.2% and raised its lowest rate to 5.60%.
Things to watch
- This is an estimate for general guidance only and is not financial or tax advice. Check your own circumstances with the CRA or a qualified adviser before acting.
- Your pay stub is calculated per pay period with CRA payroll tables, so it can differ by a few dollars from this annual figure.
- Quebec is not covered. Quebec residents pay QPP rather than CPP, a lower federal EI rate, and provincial tax with a federal abatement.
- Taxable benefits, bonuses, RRSP deductions and other credits are not modelled and will change the tax you actually owe.
Sources
- Indexation adjustment for personal income tax and benefit amounts · Canada Revenue Agency
- CPP contribution rates, maximums and exemptions · Canada Revenue Agency
- EI premium rates and maximums · Canada Revenue Agency
- T4032-ON Payroll Deductions Tables, January 2026 · Canada Revenue Agency
- T4032-AB Payroll Deductions Tables, January 2026 · Canada Revenue Agency
- British Columbia personal income tax rates · Province of British Columbia
- B.C. provincial budget tax changes (Budget 2026) · Province of British Columbia
- Alberta personal income tax rates and brackets · Government of Alberta
Last updated: 2026-01-01 · Applies to 2026
This is an estimate for general guidance, not financial, tax, legal or medical advice. Figures can change and individual circumstances vary. Always confirm with the official sources listed before making decisions.
- Covers federal tax plus Ontario (default), British Columbia or Alberta. Quebec is not modelled.
- Applies the basic personal amounts, the Canada employment amount (federal), and the CPP base and EI credits; the CPP enhanced slice and CPP2 are deducted from taxable income. No other credits or deductions.
- Ontario includes the surtax, the health premium and the Ontario tax reduction. The small B.C. tax reduction credit for low incomes (under roughly $45,000) is not modelled.
- British Columbia raised its lowest rate to 5.60% for the whole 2026 tax year; payroll withholding only adjusts from 1 July 2026, so mid-year payslips run below the annual liability.
- Social contributions are employee CPP and CPP2 plus the EI premium for provinces outside Quebec.
- Assumes a single source of employment for the full year, so the CPP and EI annual maximums apply once.
Reviewed by Vikas Dulgunde.