2026 federal rates

Canadian take-home pay calculator

Federal tax, CPP and EI on your salary. Updates as you type, and tells you plainly what provincial tax will add.

Annual salary

RRSP contribution, per year

An RRSP contribution reduces taxable income but not CPP or EI, which are charged on your gross pay regardless.

Take-home, federal tax, CPP and EI only

C$68,794 per year

C$5,733 a month · C$2,646 every two weeks

Gross salary

C$85,000

Federal income tax

- C$10,437

CPP

- C$4,230

CPP2

- C$416

- C$1,123

Effective rate

19.07%

Federal only

Your next dollar

20.5%

Federal bracket

20.5%

Provincial tax is not in this figure, and it is not small. Depending on your province it can add a quarter to half again on top of the federal tax shown here. Quebec is a different system altogether.

What this assumes

Federal tax, CPP and EI only. Provincial and territorial income tax is not included, and it is a large further deduction everywhere in Canada.
Outside Quebec. Quebec collects its own provincial income tax, runs QPP rather than CPP, and charges a lower EI rate.
2026 indexed federal brackets, indexed 2.0% from 2025. 2026 is the first full year at the 14% lowest rate, since the cut took effect halfway through 2025.
CPP on earnings between $3,500 and $74,600, then CPP2 at 4% up to $85,000. EI at 1.63% up to $68,900.
Only the basic personal amount and the CPP and EI credits are applied. Other credits, including the Canada employment amount and anything transferred from a spouse, are not.
The base 4.95% of CPP earns a credit while the enhanced portion and CPP2 are deducted from taxable income, which is why the two appear separately.
The basic personal amount is treated as fully available below $181,440 and phased down linearly to $14,829 by $258,482, which is the CRA's own method.
A full year of employment at one employer. Changing jobs mid-year usually means over-contributing to CPP and EI, which comes back as a refund.
Salary income only. No self-employment income, capital gains, or dividends.

An estimate for comparing offers within one province, not tax advice. Across provinces the missing provincial tax can be worth thousands a year.

Rates from Canada Revenue Agency and CEIC, 2026 tax year, last checked 11 August 2026.

Questions

Frequently asked questions

The parts of a Canadian paycheque that most often surprise people.

Why is provincial tax not included?

Because there are thirteen provincial and territorial systems, each with its own brackets, credits and in two cases a surtax on top of the tax. A blended guess would be wrong everywhere. Expect provincial tax to add roughly another quarter to half again on top of the federal figure, depending on where you live and what you earn.

Does this work for Quebec?

Not well. Quebec collects its own provincial income tax rather than having the CRA do it, uses QPP instead of CPP at a higher rate, and has a lower EI rate because it runs its own parental insurance plan. Three of the four numbers here would be wrong.

What are CPP and CPP2?

CPP is the base contribution, 5.95% on earnings between the $3,500 exemption and the year’s maximum pensionable earnings. CPP2 is the second tier, 4% on a band above that, phased in as part of CPP enhancement. Both come off your pay; they are shown separately because they are calculated separately.

Why does part of my CPP reduce my taxable income and part of it not?

The original 4.95% earns a non-refundable tax credit at the lowest rate. The enhanced portion above that, and all of CPP2, is a deduction from taxable income instead. It is an unusual split and it is the part most quick estimates get wrong.

Is this good enough to compare two offers?

Only if both jobs are in the same province. Across provinces the difference in provincial tax can be several thousand dollars a year on the same salary, and none of that is in this figure.

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