Salarium

How we calculate Canadian take-home pay

What after tax means here

Take-home pay is gross employment income minus federal and provincial income tax, CPP or QPP contributions, EI premiums and, in Québec, QPIP premiums. We calculate the year as a tax return would, then divide it into pay periods. Payroll withholding on each cheque uses slightly different formulas, so the difference is settled when you file.

Federal tax (2026)

14 % on the first $58,523 of taxable income, 20.5 % to $117,045, 26 % to $181,440, 29 % to $258,482 and 33 % above. Non-refundable credits at 14 %: the basic personal amount ($16,452, reduced to $14,829 between $181,440 and $258,482 of net income), the Canada employment amount ($1,501), the base part of CPP or QPP contributions, EI and QPIP premiums. The enhanced part of CPP (1 of the 5.95 points) and all of CPP2 are deducted from income instead.

Payroll contributions (2026)

CPP: 5.95 % of earnings between $3,500 and $74,600, and CPP2: 4 % between $74,600 and $85,000. EI: 1.63 % of insurable earnings up to $68,900. Québec: QPP 6.30 % and QPP2 4 %, EI 1.30 %, QPIP 0.43 % up to $103,000.

Provinces

Ontario: 5.05 % to 13.16 %, basic personal amount $12,989, surtax of 20 % and 36 % on provincial tax above $5,818 and $7,446, the Ontario tax reduction, the LIFT credit and the Ontario Health Premium. Québec: its own return with 14 % to 25.75 %, basic personal amount $18,952 and the deduction for workers. British Columbia: 5.60 % to 20.5 % and the BC tax reduction of up to $690. Alberta: 8 % to 15 %, basic personal amount $22,769. Manitoba: 10.8 % to 17.4 %, basic personal amount $15,780. Saskatchewan, Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island and the territories follow once their 2026 values are verified.

What is not included

Refundable benefits such as the GST/HST credit and the Canada workers benefit, deductions other than RRSP, dividends, capital gains, self-employment income, union dues and the Québec prescription drug insurance premium for people without group coverage.

How each value was verified

Of the values in this year's rules, 10 are confirmed by an official source, 27 by at least two independent secondary sources, 5 are derived by arithmetic from verified values (for example last year's threshold times the published indexation factor), 0 are confirmed indirectly by reproducing an external result, and 8 are long-standing statutory values that still need an official source.

Values still waiting for an official source:

Sources

Rules for the 2026 tax year, last checked on 2026-09-26. Every rate and threshold is taken from the sources below.

Put the result on your site

Copy this snippet to show the net figure for an amount on your page. Change n (the gross amount) and add &region= where regions matter. It links back to the full breakdown.

<iframe src="https://www.example.com/en-ca/embed/?n=60000" width="320" height="120" style="border:0" title="Salarium" loading="lazy"></iframe>