Canadian take-home pay calculator 2026
Canada · 2026 rates
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Also for United StatesEnter your salary and province to see what you actually take home after federal and provincial income tax, Canada Pension Plan contributions and Employment Insurance premiums.
How take-home pay is calculated in Canada
Four deductions come off your gross pay. This calculator applies each one for the 2026 tax year using the rates in the Canada Revenue Agency's payroll deductions formulas (T4127).
- Federal income tax. Charged in five brackets. Everyone gets the basic personal amount of $16,452, which is tax-free (it falls to $14,829 for incomes above $181,440).
- Provincial or territorial income tax. Each province sets its own brackets and its own basic personal amount.
- Canada Pension Plan (CPP). Employees pay 5.95% on earnings between $3,500 and $74,600, a maximum of $4,230.45. A second contribution (CPP2) of 4% applies to earnings between $74,600 and $85,000, a maximum of $416.
- Employment Insurance (EI). 1.63% of earnings up to $68,900, a maximum of $1,123.07.
In Quebec, you pay into the Quebec Pension Plan (QPP) at 6.3% instead of CPP, a lower EI rate of 1.30%, and the Quebec Parental Insurance Plan (QPIP) at 0.43% on earnings up to $103,000. Quebec residents also get a 16.5% reduction in federal tax (the Quebec abatement), because Quebec collects its own income tax.
2026 federal tax brackets
| Taxable income | Federal rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
2026 provincial and territorial income tax
| Province or territory | Lowest rate | Top rate | Basic personal amount |
|---|---|---|---|
| Alberta | 8% | 15% over $370,220 | $22,769 |
| British Columbia | 5.60% | 20.5% over $265,545 | $13,216 |
| Manitoba | 10.8% | 17.4% over $100,000 | $15,780 |
| New Brunswick | 9.4% | 19.5% over $193,861 | $13,664 |
| Newfoundland and Labrador | 8.7% | 21.8% over $1,141,275 | $13,094 |
| Northwest Territories | 5.9% | 14.05% over $172,346 | $18,198 |
| Nova Scotia | 8.79% | 21% over $157,124 | $11,932 |
| Nunavut | 4% | 11.5% over $181,439 | $19,659 |
| Ontario | 5.05% | 13.16% over $220,000, plus surtax | $12,989 |
| Prince Edward Island | 9.5% | 20% over $200,000 | $15,000 |
| Quebec | 14% | 25.75% over $132,245 | $18,952 |
| Saskatchewan | 10.5% | 14.5% over $155,805 | $20,381 |
| Yukon | 6.4% | 15% over $500,000 | Same as federal |
Three provinces changed their rates part-way through 2026. British Columbia raised its lowest rate from 5.06% to 5.60%, Newfoundland and Labrador raised its basic personal amount to $13,094, and Prince Edward Island added a 20% bracket for income over $200,000. Employers only began using the new rates on July 1, so they deduct higher prorated amounts for the rest of the year. This calculator shows the full-year figures you will settle on your 2026 tax return.
Frequently asked questions
How much is $60,000 a year after tax in Ontario?
In 2026, a $60,000 salary in Ontario gives a take-home pay of about $47,340 a year, or $3,945 a month, after federal and Ontario income tax, the Ontario Health Premium, CPP and EI.
What is the Ontario Health Premium?
Ontario residents with taxable income over $20,000 pay a health premium of up to $900 a year, collected with income tax. It is up to $300 on income up to $36,000, rising to $750 on income between $72,600 and $200,000.
Do RRSP contributions reduce my tax?
Yes. RRSP contributions, and pension contributions made through your employer, are deducted from your income before tax is worked out, so each dollar you put in saves tax at your highest rate.
Why is my paycheque different from this calculator?
Your employer works out tax one pay period at a time and uses the claim amounts on your TD1 forms. Other credits, such as tuition, medical expenses or a spouse amount, and benefits like the Canada workers benefit, are settled when you file your return. This calculator shows the yearly figure for a single employee with only the basic credits.
This calculator is for employees and gives an estimate for guidance only. Sources: CRA T4127 payroll deductions formulas and Revenu Québec.
Last checked and updated: October 2026 (2026 rates, including the July 1 changes)