Annual deductions:
- Federal tax: $6,193
- Ontario tax: $2,625
- CPP: $3,362
- EI: $978
2026 federal and provincial/territorial brackets, plus CPP (5.95% to the $74,600 YMPE, plus CPP2 at 4% up to $85,000) and EI (1.63% up to $68,900). Quebec residents actually pay QPP and QPIP instead of CPP/EI and receive a federal abatement - the Quebec figures here are an approximation, not the QPP/QPIP calculation. The federal Basic Personal Amount's phase-out above $181,440 isn't modeled. Not tax advice - confirm with the CRA or a tax professional.
Calculate Your Take-Home Pay in Canada
The Tools Kit’s free Canada Income Tax Calculator shows how much of your salary you actually keep. It takes off federal income tax, provincial or territorial income tax, CPP contributions and EI premiums. Enter your annual gross salary and choose any of the 13 provinces and territories. You then see your monthly, bi-weekly and annual take-home pay at 2026 tax rates.
Use it as a quick salary after-tax calculator when you compare job offers. It also gives a paycheque estimate before your first pay stub arrives. Or use it to see how much tax you pay in Ontario versus Alberta or British Columbia. Everything is calculated in your browser, with no signup.
How to Use the Canada Income Tax Calculator
- 1
Enter your annual gross salary
Type your yearly salary before any deductions, in Canadian dollars. Commas and spaces are ignored, so 85,000 and 85000 both work.
- 2
Choose your province or territory
Pick where you live from the list of all 13 provinces and territories. Federal tax is the same everywhere. Only the provincial part changes.
- 3
Read your take-home pay
Your monthly, bi-weekly and annual net pay appear at once. Below them you see the year’s federal tax, provincial tax, CPP contributions and EI premiums.
- 4
Compare other scenarios
Change the salary or switch province. You will see how a raise, a new job offer or a move to another province changes your paycheque.
How Income Tax Is Calculated in Canada
Canadian income tax has two layers. The federal government taxes your income with one set of brackets. Your province or territory taxes it again with its own brackets. The two amounts are then added together. Each layer also gives a basic personal amount. This is a slice of income that is in effect tax-free, because it is credited back at the lowest bracket rate.
For 2026 the calculator uses the federal brackets below. The federal basic personal amount is $16,452.
- 14% on taxable income up to $58,523
- 20.5% on income from $58,523 to $117,045
- 26% on income from $117,045 to $181,440
- 29% on income from $181,440 to $258,482
- 33% on income above $258,482
Employers also take Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums from every paycheque, on top of income tax. You can see those two on their own, with the CPP2 tier broken out, in the CPP and EI calculator.
Worked Example: $60,000 After Tax in Ontario
Here is exactly how the calculator reaches its figure for a $60,000 salary in Ontario.
- Federal tax: 14% on $42,071 (income from $16,452 to $58,523) plus 20.5% on the remaining $1,477 = $6,193.
- Ontario tax: 5.05% on $40,902 (from the $12,989 Ontario basic personal amount to $53,891) plus 9.15% on $6,109 = $2,625.
- CPP: 5.95% of ($60,000 − $3,500) = $3,362. There is no CPP2, because the salary is below $74,600.
- EI: 1.63% of $60,000 = $978.
- Take-home: $60,000 − $13,157 in deductions = $46,843 a year, $3,904 a month, or $1,802 bi-weekly. (The four rounded lines above add to $13,158. The calculator subtracts the unrounded tax amounts.)
Think about pay by the hour? The salary to hourly calculator turns that $60,000 into an hourly rate. The hourly to salary calculator works the other way, so you can bring an hourly wage back here as a yearly figure.
Take-Home Pay by Province
Federal tax, CPP and EI are the same in every province. So the gap in take-home pay comes only from provincial or territorial tax. Here is the calculator’s 2026 monthly take-home on a $60,000 salary.
- Nunavut: $3,977
- Ontario: $3,904
- Northwest Territories: $3,901
- British Columbia: $3,887
- Alberta: $3,874
- Nova Scotia: $3,621
- Quebec: $3,620
The order shifts as income rises. Alberta has a high basic personal amount ($22,769). At lower incomes, its 8% starting rate cancels much of that out. At $150,000, though, its 10% bracket, which runs up to $154,259, puts it ahead of Ontario. There, the surtax adds $2,712 to provincial tax at that salary. So compare provinces at your own salary, rather than rely on a single “lowest-tax province” answer.
Moving also changes what you pay at the till. The GST/HST calculator shows each province’s sales tax. The moving cost calculator helps you budget the move itself.
What This Calculator Does Not Include
To keep things simple and clear, the only tax credit applied is the basic personal amount. The calculator does not include:
- RRSP deductions
- The tax credits for CPP and EI contributions
- The Canada Employment Amount
- The Ontario Health Premium
- The federal basic personal amount reduction above $181,440
So the tax you owe on your return can differ from the figure shown. Quebec is only an estimate, because QPP, QPIP and the federal Quebec abatement are not modeled.
Planning to lower your tax with retirement savings? The RRSP calculator estimates the refund from a contribution by province. The TFSA calculator tracks your contribution room for tax-free savings. This is an estimate, not tax advice. Confirm your situation with the CRA or a tax professional.
Common uses
- Checking what a job offer is really worth per paycheque before you accept.
- Comparing take-home pay between provinces before you move.
- Building a monthly budget from net pay rather than gross salary.
- Seeing how much of a raise you keep once tax, CPP2 and EI are applied.
- Estimating the bi-weekly pay deposit for a new salaried role.
If you work in the United States instead, the paycheck calculator handles US federal and state withholding. You will find more money tools in the calculator tools section.
Canadian income tax terms explained
| Term | What it means here |
|---|---|
| Gross salary | Your yearly pay before tax and payroll deductions. This is the figure you enter in the calculator. |
| Take-home pay (net pay) | What is left after federal tax, provincial tax, CPP and EI. It is shown per year, per month and every two weeks. |
| Basic personal amount (BPA) | Income you can earn before tax applies. It is given as a non-refundable credit: $16,452 federally for 2026, and a different amount in each province. |
| Tax bracket | A band of income taxed at one rate. Only the income inside a band is taxed at that band’s rate. |
| Ontario surtax | An extra charge of 20% and 36% on Ontario provincial tax above set thresholds. It is added on top of the brackets. |
| CPP / CPP2 | Canada Pension Plan contributions. You pay 5.95% up to the YMPE, then a second 4% tier up to the YAMPE. |
| YMPE / YAMPE | Year’s Maximum Pensionable Earnings ($74,600) and Year’s Additional Maximum Pensionable Earnings ($85,000) for 2026. These are the two CPP earnings caps. |
| EI premium | Employment Insurance deduction. It is 1.63% of insurable earnings up to $68,900. |
Income tax calculator by province
See full take-home breakdowns for each province and territory at 2026 rates.
- Ontario income tax calculator
- Quebec income tax calculator
- British Columbia income tax calculator
- Alberta income tax calculator
- Saskatchewan income tax calculator
- Manitoba income tax calculator
- Nova Scotia income tax calculator
- New Brunswick income tax calculator
- Newfoundland and Labrador income tax calculator
- Prince Edward Island income tax calculator
- Yukon income tax calculator
- Northwest Territories income tax calculator
- Nunavut income tax calculator
Frequently Asked Questions
Start with your gross salary. Subtract federal income tax, provincial or territorial income tax, CPP contributions and EI premiums. What is left is your take-home pay. Divide it by 12 for a monthly figure, or by 26 for a bi-weekly paycheque. The calculator does all of this as soon as you enter a salary and pick a province.
About $46,843 a year for 2026. That is $3,904 a month or $1,802 every two weeks. It is what is left after $6,193 federal tax, $2,625 Ontario tax, $3,362 CPP and $978 EI. The only tax credit used is the basic personal amount.
The calculator uses 14% on taxable income up to $58,523 and 20.5% up to $117,045. Next come 26% up to $181,440 and 29% up to $258,482. Income above that is taxed at 33%. The federal basic personal amount is $16,452.
With this calculator’s 2026 rates, Nunavut leaves the highest take-home pay at $60,000, $100,000 and $150,000. Among the provinces, Ontario and British Columbia lead at $60,000 and $100,000. Alberta and British Columbia are ahead at $150,000. Quebec and Nova Scotia leave the least at each of those levels.
No. Canada uses progressive brackets, so each slice of income is taxed at its own rate. Moving into a higher bracket only raises the rate on the dollars above that line. It never changes the rate on the income below it.
Ontario adds 20% of any Ontario tax above $5,818. It adds a further 36% of any Ontario tax above $7,446. For someone claiming only the basic personal amount, it starts at a salary of about $95,000. On a $150,000 salary it adds $2,712 to Ontario tax.
CPP is 5.95% of earnings between $3,500 and $74,600, up to $4,230. CPP2 adds 4% on earnings between $74,600 and $85,000, up to $416. EI is 1.63% of earnings up to $68,900, a maximum of $1,123. Anyone earning $85,000 or more pays the maximum $4,646 CPP.
Only roughly. It applies Quebec’s own income tax brackets. But Quebec workers pay QPP and QPIP instead of CPP and EI, and they get a federal tax abatement (a cut in federal tax). None of these are modeled, so treat the Quebec take-home figure as an estimate.
No. The only credit applied is the federal and provincial basic personal amount. It leaves out RRSP deductions, the CPP and EI credits, the Canada Employment Amount and the Ontario Health Premium. It also leaves out the federal BPA reduction above $181,440. So your actual tax return can differ.
No. The math runs in your browser using tax tables built into the page. The salary you type is not sent to a server or stored. No signup is needed.
The annual take-home figure is divided by 26. That is the number of pay periods in a year when you are paid every two weeks. Monthly take-home is the annual figure divided by 12.
Reviewed by Raja Jahangir · Last reviewed: October 2026
How is income tax calculated in Canada?
Canadian income tax is federal tax plus provincial or territorial tax, each with its own brackets and a basic personal amount credited at that layer's lowest rate. CPP contributions and EI premiums are deducted on top, and take-home pay is gross salary minus all four. Quebec figures are approximate because QPP and QPIP are not modeled.
Why does take-home pay differ between provinces?
Take-home pay differs between provinces because federal tax is identical everywhere but each province sets its own brackets, rates, and basic personal amount, and Ontario adds a surtax on higher tax bills. The same salary therefore leaves less in a high-tax province than in Alberta or a territory, even though CPP and EI are the same.
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