--- title: "Canada payroll calculator: net pay, CPP, EI and RRSP | AumnI tools" description: "Turn a Canadian salary or hourly rate into net pay per cheque for any province or territory, with tax, CPP or QPP, EI, RRSP and employer payroll cost." url: https://aumnitools.com/ca/tool/payroll-calculator category: "Financial" country: "Canada" updated: 2026-11-08 --- # Payroll Calculator 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. ## 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](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/cpp-contribution-rates-maximums-exemptions.html) (checked 2026-11-08); [CRA: EI premium rates and maximums](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/employment-insurance-ei/ei-premium-rates-maximums.html) (checked 2026-11-08); [CRA: T4127 Payroll Deductions Formulas, January 1, 2026](https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4127-payroll-deductions-formulas/t4127-jan/t4127-jan-payroll-deductions-formulas-computer-programs.html) (checked 2026-11-08); [CRA: T4032-ON Payroll Deductions Tables, January 1, 2026](https://www.canada.ca/content/dam/cra-arc/migration/cra-arc/tx/bsnss/tpcs/pyrll/t4032/2026/t4032-on-1-26e.pdf) (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. Formula: `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](https://aumnitools.com/tool/tax-calculator.md). - **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. ## Related tools - [Tax Calculator](https://aumnitools.com/tool/tax-calculator.md): Estimates US federal income tax, FICA and state tax for 2026 by filing status - [Retirement Planning Calculator](https://aumnitools.com/tool/retirement-planning-calculator.md): Projects retirement savings against a 4% withdrawal target and shows any shortfall - [Budget Planner](https://aumnitools.com/tool/budget-planner.md): Plans monthly income and expenses by category, with a health score and debt payoff ## About this page Runs in your browser: what you enter is processed on this device and is not uploaded. Estimates for planning only, not financial, tax or legal advice. Check figures that matter with a qualified professional. Last checked against the tool's code on 2026-11-08. Interactive version: https://aumnitools.com/ca/tool/payroll-calculator