--- title: "Canada income tax calculator: federal, provincial, CPP, EI | AumnI tools" description: "Estimate Canadian federal and provincial income tax, CPP or QPP and EI on a salary for any province or territory, with tax in each band and take-home pay." url: https://aumnitools.com/ca/tool/tax-calculator category: "Financial" country: "Canada" updated: 2026-11-08 --- # Tax Calculator In Canada, a pay cheque is cut by federal tax, a provincial or territorial tax that depends on where you live, and pension and employment insurance contributions. This version applies the 2026 CRA figures for all thirteen provinces and territories, including Quebec's own pension plan and abatement, and shows each piece beside your take-home pay. ## Canada rules and figures - Federal tax for 2026 starts at 14% on the first $58,523. After that come 20.5% up to $117,045, then 26% up to $181,440, then 29% up to $258,482, and finally 33%. - The federal basic personal amount is $16,452, reduced toward $14,829 for net income between $181,440 and $258,482. - CPP contributions are 5.95% of earnings between the $3,500 exemption and the $74,600 maximum, plus 4% on the next slice up to $85,000. - Employment Insurance premiums are 1.63% of insurable earnings up to $68,900, and an employer pays 1.4 times the employee amount. - Quebec residents pay QPP at 5.3% base plus 1%, and the federal tax is cut by a 16.5% Quebec abatement. - The Canadian tax year used here is the calendar year, 1 January to 31 December 2026. Sources: [CRA: Tax rates and income brackets for the 2026 tax return](https://www.canada.ca/en/revenue-agency/services/tax/individuals/tax-rates-brackets/current-year.html) (checked 2026-11-08); [CRA: Adjustment of personal income tax and benefit amounts](https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/adjustment-personal-income-tax-benefit-amounts.html) (checked 2026-11-08); [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); [Department of Finance Canada: Quebec Abatement](https://www.canada.ca/en/department-finance/programs/federal-transfers/quebec-abatement.html) (checked 2026-11-08) ## How the tax calculator works Federal tax is charged by band and then reduced by non-refundable credits, mainly the basic personal amount. The province or territory you pick adds its own bands and credits. CPP or QPP, CPP2 and EI come off gross pay, and the additional CPP part and CPP2 also reduce taxable income. Formula: `federal = Σ (income in band × rate) − 14% × credit amounts; provincial = Σ (income in band × rate) − credits; take-home = income − federal − provincial − CPP − CPP2 − EI` - Federal bands for 2026 are 14%, 20.5%, 26%, 29% and 33%, with the first break at $58,523. - CPP is 5.95% on earnings between $3,500 and $74,600, and CPP2 is a further 4% from $74,600 to $85,000, a maximum of $416. - EI is 1.63% of earnings up to $68,900, or 1.30% in Quebec, where QPIP adds 0.430% on earnings up to $103,000. - Ontario adds a surtax and a health premium of up to $900. Quebec subtracts a 16.5% federal abatement and has a worker deduction of up to $1,450. ## How to use the tax calculator 1. **Enter your gross pay.** Type your income for 2026 in Canadian dollars. It is treated as employment income earned in the place you choose next. 2. **Pick your province or territory.** The province or territory picker sets the provincial bands, credits and, for Quebec, the pension plan. Ontario is the default. 3. **Read each deduction.** The breakdown lists federal tax, provincial tax, CPP or QPP and EI separately. Open Band by band to see the income taxed at each rate. 4. **Confirm the sources.** Official sources lists the CRA and provincial pages behind the figures. Copy summary saves a short text of the result. ## Example: $85,000 in Ontario, compared with Alberta and Quebec In Ontario, $85,000 gives federal tax of $10,226.60, Ontario tax of $4,574.46 and a health premium of $750. CPP is $4,230.45, CPP2 is $416 and EI is $1,123.07. In all $21,320.58 is taken off, an effective rate of 25.1%, leaving $63,679.42. The same pay in Alberta leaves $64,033.50, and in Quebec, with QPP, QPIP and the abatement, $60,763.82. ## When to use the tax calculator - **Comparing provinces for a move.** Keep the pay the same and change the province or territory to see how provincial tax changes take-home. - **Checking a job offer.** Enter the salary to see a yearly figure after federal tax, provincial tax, CPP and EI. - **Seeing the CPP2 effect.** Try $74,000 and $85,000 to see CPP2 start above the $74,600 limit and stop at $85,000. - **Understanding Quebec.** Select Quebec to see QPP, QPIP, the worker deduction and the federal abatement listed as separate lines. ## What the tax calculator does not do - Only the basic personal amount, the Canada employment amount and CPP or QPP base, EI and QPIP credits are applied. Spouse, age, tuition, medical and other credits are not. - All income is treated as employment income. Capital gains, dividends, self-employment income and the Alternative Minimum Tax are not covered. - Provincial benefits and rebates, such as the Canada Workers Benefit and the Ontario Trillium Benefit, are not included. - Quebec's own credit rate could not be read on an official page, so the lowest Quebec rate is used for its credits. - Results are estimates for the 2026 tax year and do not replace the CRA's own tools. ## When something else is a better fit - **When you want pay per cheque with RRSP and employer costs**, use the [Payroll Calculator](https://aumnitools.com/tool/payroll-calculator.md). - **When you are preparing a return with credits and other income**, use CRA My Account or tax software. ## Questions about the tax calculator ### How much tax do I pay on $85,000 in Ontario? In 2026, federal tax is $10,226.60 and Ontario tax with its health premium is $5,324.46. With CPP, CPP2 and EI the total is $21,320.58, which leaves $63,679.42 a year. ### Why does Quebec show different deductions? Quebec runs its own pension plan and parental insurance. It pays QPP and QPIP instead of CPP, a lower EI rate, and its residents get a 16.5% abatement on federal tax. ### Is CPP counted as a tax here? It is counted as a deduction from pay, though it builds a pension. The base part is a credit and the additional part and CPP2 reduce taxable income. ### Which province is selected by default? Ontario. Use the province or territory picker to change it, and note the result updates the provincial bands, credits and any surtax or premium. ### Which year are the figures for? The 2026 calendar year, using CRA and provincial pages listed under the results with the date each was checked. ## Related tools - [Payroll Calculator](https://aumnitools.com/tool/payroll-calculator.md): Estimates US net pay per paycheck and employer cost from salary or hourly pay for 2026 - [Retirement Planning Calculator](https://aumnitools.com/tool/retirement-planning-calculator.md): Projects retirement savings against a 4% withdrawal target and shows any shortfall - [Savings Goal Calculator](https://aumnitools.com/tool/savings-goal-calculator.md): Works out the monthly deposit needed to reach a savings goal by a set date ## 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/tax-calculator