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    Payroll Calculator

    🇨🇦 Canada version

    A Canadian pay cheque loses federal tax, provincial or territorial tax, CPP or QPP and EI before it reaches your account, and the employer pays matching contributions on top. This payroll calculator applies the 2026 CRA figures for your province or territory, defaults to biweekly pay, and shows net pay per cheque beside what the job costs to employ.

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    Payroll Calculator

    Take-home pay and employer cost for Canada, tax year 2026. Change the country in the header to use another country's rules.

    Pay

    $
    $

    Where you live on December 31, 2026 (where you work, for payroll). Quebec uses QPP and QPIP and has its own tax return.

    per year

    Deducted from income before tax. The contribution limit is not checked.

    $

    An amount taken from each paycheck after tax, such as a union fee. It lowers take-home only.

    Net pay

    Per pay period (every two weeks (biweekly))

    Gross a paycheck
    $2,884.62
    Taken off a paycheck
    $695.16
    Take-home a paycheck
    $2,189.45
    Effective / marginal rate
    24.1% / 32.5%
    ItemAmount a paycheckShare of gross
    Federal basic personal amount (tax-free)$632.77
    CPP additional contributions and CPP2 (deducted before tax)$27.96
    Federal income tax
    Bands show tax before credits ($11421.97). Non-refundable credits at 14% of the basic personal amount ($16452), the Canada employment amount, CPP base contributions and EI come off this: $3163.37.
    Band by band
    • 14% on $2,250.88 = $315.12
    • 20.500% on $605.77 = $124.18
    		$317.6411%
    Ontario provincial income tax
    Bands show tax before credits ($4586.45). Credits at 5.05% of the basic personal amount ($12989), CPP base contributions and EI: $890.39.
    Band by band
    • 5.050% on $2,072.73 = $104.67
    • 9.150% on $783.92 = $71.73
    		$142.164.9%
    Ontario Health Premium
    Set by taxable income, from $0 up to $900 a year.
    		$28.851%
    CPP contributions (base 4.95% plus first additional 1%)
    On earnings from $3,500 to $74,600. The 4.95% base part is a credit; the 1% additional part is deducted from income.
    		$162.715.6%
    CPP2 (second additional contribution)
    4% on earnings from $74,600 to $85,000. Deducted from income.
    		$0.620%
    Employment Insurance (1.63%)
    On insurable earnings up to $68,900.
    		$43.201.5%
    • Tax year 2026 (calendar year). All income is treated as employment income earned in the province or territory chosen.
    • Only the basic personal amount, the Canada employment amount and CPP base, EI credits are applied. The CPP additional contributions and CPP2 are deducted from income, as CRA describes.
    • Ontario: the Ontario Health Premium and surtax are shown separately and are included in total tax.
    Take-home a paycheck, after other deductions
    $2,189.45
    Take-home a year, after other deductions
    $56,925.82

    Where each paycheck goes

    • Federal income tax$317.64 (10.9%)
    • Ontario provincial income tax$142.16 (4.9%)
    • Ontario Health Premium$28.85 (1.0%)
    • CPP contributions (base 4.95% plus first additional 1%)$162.71 (5.6%)
    • CPP2 (second additional contribution)$0.62 (0.0%)
    • Employment Insurance (1.63%)$43.20 (1.5%)
    • CPP additional contributions and CPP2$27.96 (1.0%)
    • Take-home$2,189.45 (75.2%)

    Net pay at each pay frequency

    FrequencyGrossNet
    Weekly$1,442.31$1,094.73
    Every two weeks (biweekly)$2,884.62$2,189.45
    Twice a month (semimonthly)$3,125.00$2,371.91
    Monthly$6,250.00$4,743.82

    Same annual figures; other deductions are treated as the same yearly total.

    Annual totals
    Gross a year
    $75,000.00
    Taken off a year
    $18,074.18
    Take-home a year
    $56,925.82
    Effective / marginal rate
    24.1% / 32.5%
    ItemAmount a yearShare of gross
    Federal basic personal amount (tax-free)$16,452.00
    CPP additional contributions and CPP2 (deducted before tax)$727.00
    Federal income tax
    Bands show tax before credits ($11421.97). Non-refundable credits at 14% of the basic personal amount ($16452), the Canada employment amount, CPP base contributions and EI come off this: $3163.37.
    Band by band
    • 14% on $58,523.00 = $8,193.22
    • 20.500% on $15,750.00 = $3,228.75
    		$8,258.6011%
    Ontario provincial income tax
    Bands show tax before credits ($4586.45). Credits at 5.05% of the basic personal amount ($12989), CPP base contributions and EI: $890.39.
    Band by band
    • 5.050% on $53,891.00 = $2,721.50
    • 9.150% on $20,382.00 = $1,864.95
    		$3,696.064.9%
    Ontario Health Premium
    Set by taxable income, from $0 up to $900 a year.
    		$750.001%
    CPP contributions (base 4.95% plus first additional 1%)
    On earnings from $3,500 to $74,600. The 4.95% base part is a credit; the 1% additional part is deducted from income.
    		$4,230.455.6%
    CPP2 (second additional contribution)
    4% on earnings from $74,600 to $85,000. Deducted from income.
    		$16.000%
    Employment Insurance (1.63%)
    On insurable earnings up to $68,900.
    		$1,123.071.5%
    • Tax year 2026 (calendar year). All income is treated as employment income earned in the province or territory chosen.
    • Only the basic personal amount, the Canada employment amount and CPP base, EI credits are applied. The CPP additional contributions and CPP2 are deducted from income, as CRA describes.
    • Ontario: the Ontario Health Premium and surtax are shown separately and are included in total tax.

    Employer cost

    ItemAmount a paycheckAmount a year
    Gross pay$2,884.62$75,000.00
    Employer CPP
    Equal to the employee contribution.
    		$162.71$4,230.45
    Employer CPP2
    Equal to the employee second additional contribution.
    		$0.62$16.00
    Employer EI
    1.4 times the employee premium.
    		$60.47$1,572.30
    Total cost to the employer$3,108.41$80,818.75

    The employer pays 7.8% on top of gross pay.

    Results are estimates for tax year 2026 and do not replace the official calculator or guidance from the tax authority (for example: CRA: T4127 Payroll Deductions Formulas, 123rd edition, effective July 1, 2026). Hourly pay assumes the same hours every week of the year. Pre-tax health insurance and HSA or FSA deductions (Section 125 plans) are not modelled; enter other after-tax amounts under Other deductions after tax.

    🇨🇦 Canada, tax year 2026 (1 January to 31 December 2026)

    Official sources
    Not covered
    • Only the basic personal amount, the Canada employment amount, and the CPP/QPP base, EI and QPIP credits are modelled. Other credits such as age, pension income, disability, tuition, medical, charitable, spouse and dependant amounts are not.
    • RRSP contributions are only a plain deduction from income that you enter. The contribution limit, FHSA deductions, employer pension plans, union dues and other deductions are not checked or modelled.
    • The tool treats all income as employment income. Capital gains, dividends, interest, self-employment income and the Alternative Minimum Tax are not covered.
    • Provincial low-income and family credits, rebates and benefits are not modelled, including the Canada Workers Benefit, the Ontario Trillium Benefit, the Quebec solidarity credit and the GST/HST credit. Provincial tax reductions are modelled only for Ontario and British Columbia.
    • Provincial credits for CPP/QPP base contributions and EI premiums are applied at the lowest provincial rate, as in the CRA payroll formulas. Alberta credits above $61,200 of claim amounts, which the CRA formulas value at a higher rate, do not arise with the amounts used here.
    • Quebec: the worker deduction is taken on gross pay up to its maximum. The 14% credit rate Quebec applies to its basic personal amount and to the QPP, EI and QPIP credits could not be read on an official page and is set to the lowest Quebec rate. Quebec contributions that employees may also pay, such as the Health Services Fund, are not modelled.
    • Employer costs include CPP/QPP, CPP2/QPP2, EI and QPIP only. The Quebec Health Services Fund, CNESST, the Commission des normes contribution, workers' compensation premiums, and provincial payroll taxes such as the Ontario Employer Health Tax, the BC Employer Health Tax, the Manitoba Health and Post-Secondary Education Tax Levy and the Newfoundland and Labrador health and post-secondary education tax are not included.
    • Yukon: the basic personal amount follows the federal phase-down range, as the CRA payroll formulas state (BPAYT equals the federal amount).
    • The Manitoba and Prince Edward Island figures follow the CRA payroll tables. The CRA web rate page lists slightly different Manitoba thresholds ($47,564 and $101,200); the payroll tables and formulas, which say Manitoba amounts were not indexed from 2025, were used instead.
    • Prince Edward Island uses the full-year 2026 rate of 20% above $200,000 shown on the CRA rate page; the payroll table shows the prorated 21% rate for withholding in the second half of 2026.
    • Non-residents, part-year residents, people with more than one employer, and people over the age where CPP or EI no longer apply are not covered. CPP, QPP and EI are charged on all earnings up to their yearly limits.
    • Sales tax rates are the standard rates only. Zero-rated and exempt goods (basic groceries, for example) and provincial point-of-sale rebates are not modelled.

    Canada rules and figures

    • CPP is 5.95% of earnings between $3,500 and $74,600 in 2026, and CPP2 is 4% on earnings from $74,600 to $85,000.
    • EI premiums are 1.63% of earnings up to $68,900, or 1.30% in Quebec, and employers pay 1.4 times the employee premium.
    • In Quebec, QPP is 5.3% base plus 1% additional, and QPIP is 0.430% for employees and 0.602% for employers on earnings up to $103,000.
    • The federal basic personal amount is $16,452 and federal rates run from 14% to 33% across five bands.
    • Ontario adds a health premium of up to $900 a year and a surtax once Ontario tax passes $5,818.

    Sources: CRA: CPP contribution rates, maximums and exemptions (checked 2026-11-08); CRA: EI premium rates and maximums (checked 2026-11-08); CRA: T4127 Payroll Deductions Formulas, January 1, 2026 (checked 2026-11-08); CRA: T4032-ON Payroll Deductions Tables, January 1, 2026 (checked 2026-11-08)

    How the payroll calculator works

    Gross is built from a salary or from hourly pay and overtime, with any bonus added. Federal and provincial tax, CPP or QPP and EI are worked out for the year, with any RRSP amount taken off income first, then divided by the pay periods. Employer contributions are added to gross pay for the total cost.

    net per cheque = (gross − federal − provincial − CPP − CPP2 − EI) ÷ periods; employer cost = gross + employer CPP + employer CPP2 + 1.4 × EI

    • Pay can be weekly, biweekly, twice a month or monthly, so annual figures are divided by 52, 26, 24 or 12. Biweekly is the default.
    • An RRSP contribution lowers taxable income but not CPP or EI, and the contribution limit is not checked.
    • Employer CPP matches the employee amount, including CPP2, and employer EI is 1.4 times the employee premium.
    • CPP2 is spread evenly over the year here, although payroll in practice starts it only after pay passes $74,600.

    How to use the payroll calculator

    1. Choose pay type and frequency. Pick salaried or hourly pay, then weekly, biweekly, twice a month or monthly.
    2. Enter the pay. Enter your yearly salary, or an hourly rate with the regular and overtime hours worked, and a bonus if any.
    3. Pick where you work. Choose the province or territory and enter any yearly RRSP contribution. Quebec switches to QPP and QPIP.
    4. Review each cheque. Net pay shows federal tax, provincial tax, CPP and EI per cheque. Annual totals covers the year, and Employer cost shows the matching contributions.
    5. Take the figures with you. Copy breakdown places them on the clipboard and Export CSV downloads a table.

    Example: $85,000 salary paid biweekly in Ontario

    Each cheque has $3,269.23 gross. Federal tax is $393.33, Ontario tax $175.94, the health premium $28.85, CPP $162.71, CPP2 $16 and EI $43.20, so net pay is $2,449.21, or $63,679.42 a year. The employer adds $162.71 of CPP, $16 of CPP2 and $60.47 of EI, so the job costs $3,508.41 a cheque, $91,218.75 a year. In Quebec the same pay nets $2,337.07 a cheque.

    When to use the payroll calculator

    • Comparing offers across provinces. Keep the salary fixed, change the province or territory and compare net pay per cheque.
    • Seeing what an RRSP costs. Enter a yearly contribution and watch net pay fall by less than the amount, because income tax drops as well.
    • Budgeting a hire. The Employer cost table adds CPP, CPP2 and EI to gross pay for the yearly cost of an employee.
    • Checking overtime. Switch to hourly and add overtime hours to see how much of the extra pay is left after deductions.

    What the payroll calculator does not do

    • Tax is spread evenly across cheques rather than following the CRA's payroll tables, so a pay stub can differ.
    • Credits are limited to the basic personal amount, the Canada employment amount and contribution credits for CPP or QPP, EI and QPIP; TD1 claims are not read.
    • Employer cost covers CPP or QPP, EI and QPIP only. Provincial payroll taxes, the Quebec Health Services Fund and workers' compensation premiums are not included.
    • The RRSP limit and employer pension plans are not checked or modelled. Hourly pay assumes identical hours in each of the 52 weeks.

    When something else is a better fit

    • When you want only the yearly tax by province, use the Tax Calculator.
    • When you run a real payroll and remit to the CRA, use the CRA Payroll Deductions Online Calculator or payroll software.

    Questions about the payroll calculator

    What is net pay on $85,000 in Ontario?

    $2,449.21 per biweekly cheque for 2026, or $63,679.42 a year, after federal tax, Ontario tax and premium, CPP, CPP2 and EI, with no RRSP contribution.

    Why is employer cost higher than gross pay?

    The employer pays CPP or QPP and EI on top of salary. On $85,000 in Ontario that adds $6,218.75, bringing the cost to $91,218.75.

    Does an RRSP contribution lower CPP or EI?

    No. It reduces taxable income for federal and provincial tax. CPP and EI are charged on gross earnings up to their yearly limits.

    How does Quebec differ on payroll?

    Quebec uses QPP and QPIP, a lower EI rate and a federal abatement, and has its own worker deduction. The same $85,000 nets $2,337.07 per cheque there.

    Is CPP2 taken evenly from every cheque?

    Here, yes: $416 a year is divided across the pay periods. A real payroll starts it only after earnings pass $74,600, so early-year cheques differ.