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Canada Income Tax & Paycheque Calculator

Enter your salary or hourly wage to see your take-home pay after federal and provincial income tax, CPP and EI, for every province and territory.

$
More options· RRSP contributions
$

Per year, made through payroll.

Take-home per paycheque

$2,189.44

Paid every 2 weeks · 2026 tax rules

Per month
$4,744
Per year
$56,926
How your pay is split
  • Take-home76%
  • Federal tax11%
  • CPP & EI7%
  • Ontario tax6%

Average tax rate 24.1% · Marginal 32.5%Both rates include CPP and EI, not just income tax.

What this means

Of every extra $100 you earn, you’d take home about $68. The other 32% is your marginal rate: the rate on a raise, a bonus or overtime.

Across all your pay, only 24% goes to tax and deductions, because the first part of your income is taxed at lower rates. A raise never lowers your take-home pay overall.

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Breakdown

Per paychequePer year
Gross pay$2,884.62$75,000.00
Federal income tax-$317.64-$8,258.60
Ontario income tax-$142.16-$3,696.06
Ontario Health Premium-$28.85-$750.00
CPP-$162.71-$4,230.45
CPP2-$0.62-$16.00
EI-$43.20-$1,123.07
Take-home pay$2,189.44$56,925.82

Where your pay goes

Gross pay $6,250

Where your gross pay goes
  • Take-home$4,744
  • Federal tax$688
  • CPP & EI$447
  • Ontario tax$371

Take-home $4,744, as a 50/30/20 budget

A 50/30/20 budget of your take-home pay
  • Needs$2,372
  • Wants$1,423
  • Savings$949

Amounts a month. The 50/30/20 guide puts half your take-home pay towards needs, 30% towards wants and 20% towards savings and paying off debt.

Plan your budget with your take-home pay
Assumptions in this estimate
  • Assumes employment income is your only income and you claim the basic personal amount and the Canada employment amount.
  • Tax is your estimated annual liability spread evenly across pay periods; your employer’s withholding (based on your TD1) can differ slightly.
  • CPP and EI are spread evenly too. In practice they stop once you reach the yearly maximum (EI at $68,900 of earnings, CPP at $74,600 and CPP2 at $85,000), so higher earners’ last paycheques of the year are larger.
  • From July to December 2026, employers in British Columbia, Newfoundland and Labrador and Prince Edward Island use catch-up rates for mid-year changes, so those paycheques differ slightly; the yearly total is the same.
  • The Canada Workers Benefit and other refundable benefits you claim on your return are not included.
  • The temporary federal top-up credit (2025–2030) only affects people with very large non-refundable credits and is not included.
  • The Ontario LIFT credit for lower-income workers is claimed on your tax return and is not included.
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How your paycheque is calculated

Your take-home pay is what is left after these deductions:

  1. RRSP contributions made through payroll, which lower your taxable income.
  2. Federal income tax, using the 2026 federal brackets (14% to 33%) minus non-refundable credits such as the basic personal amount and the Canada employment amount.
  3. Provincial or territorial income tax, using your province’s brackets and credits. Ontario adds a surtax for higher earners and the Ontario Health Premium.
  4. CPP or QPP contributions and EI premiums, up to the yearly maximums. Part of your CPP contributions is a tax credit and the enhanced part is a deduction from income.

About these estimates

The calculator estimates your tax for the full year and spreads it evenly across your paycheques. It assumes employment income is your only income and that you claim the basic personal amount. See our methodology and sources for every assumption and the official CRA and Revenu Québec sources we use.

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Frequently asked questions

How is take-home pay calculated in Canada?

Start with your gross pay, subtract RRSP contributions made through payroll, then subtract federal income tax, provincial or territorial income tax, CPP (or QPP in Quebec) contributions and EI premiums. Quebec employees also pay QPIP premiums. What is left is your net pay.

How much are CPP and EI in 2026?

Outside Quebec, employees contribute 5.95% to the CPP on earnings between $3,500 and $74,600, plus 4% CPP2 on earnings from $74,600 to $85,000. EI premiums are 1.63% of earnings up to $68,900 (1.30% in Quebec).

What is the lowest federal tax rate in 2026?

The lowest federal rate is 14% on taxable income up to $58,523 in 2026, after it was cut from 15% in July 2025. Federal non-refundable credits, such as the basic personal amount, are also calculated at 14%.

Why is Quebec different?

Quebec collects its own provincial income tax through a separate Quebec return. Quebec employees contribute to the QPP instead of the CPP, pay QPIP premiums for parental insurance and a lower EI rate, and receive a 16.5% reduction in federal tax (the Quebec abatement).

What is the difference between average and marginal tax rate?

Your average tax rate is the share of your total pay that goes to tax and payroll deductions. Your marginal tax rate is the rate on your next dollar of pay. A raise is taxed at your marginal rate, so it always increases your take-home pay.

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