Canada Income Tax Calculator

Your Canadian salary passes through four different hands before it reaches you: Ottawa takes federal income tax, your province takes its own slice, and the CPP and EI premiums come off your paycheque whether you notice them or not. On an $85,000 Ontario salary in 2026, those four bites add up to roughly $22,000, and the math is not a flat percentage, it is a stack of brackets, caps and credits that reward knowing how they fit together. This estimate runs the real 2026 numbers: the federal brackets with their new 14% bottom rate, the Ontario brackets, the $16,452 federal and $12,989 Ontario basic personal amounts, CPP at 5.95% with the second tier CPP2, and EI at 1.63%, all with their 2026 maximums. Out come your estimated federal tax, Ontario tax, CPP, EI, total deductions, take home pay, marginal rate and effective rate. It is a planning estimate, not tax advice: it skips the Ontario Tax Reduction, the LIFT credit, RRSP and other deductions, and Quebec's separate QPIP rates. Use it to compare job offers, see what a raise really nets you, or sanity check your pay stub. Combines federal CRA brackets with your provincial tax rates, and accounts for RRSP deductions and the basic personal amount.

Last updated: October 22, 2026

Written by Ateeq Fareedi · Last updated October 22, 2026

The formula

Federal tax = 2026 CRA brackets per slice (14%, 20.5%, 26%, 29%, 33%) minus the federal BPA credit ($16,452 × 14%)
Ontario tax = 2026 Ontario brackets per slice (5.05%, 9.15%, 11.16%, 12.16%, 13.16%) minus the Ontario BPA credit ($12,989 × 5.05%)
CPP = 5.95% on earnings $3,500, $74,600 (max $4,230.45) + CPP2 4% on earnings $74,600, $85,000 (max $416)
EI = 1.63% on earnings up to $68,900 (max premium $1,123.07)
Take-home pay = gross income − federal tax − Ontario tax − CPP − EI
Effective rate = total deductions ÷ gross income; marginal rate = federal bracket of the last dollar

A worked example

An Ontario earner on $85,000 in 2026: the federal brackets give $13,621.01 before the $2,303.28 basic personal amount credit, leaving federal tax of $11,317.73; Ontario's brackets give $5,567.97 before the $655.94 Ontario credit, leaving $4,912.02. CPP hits its combined maximum of $4,646.45 (base $4,230.45 + CPP2 $416) and EI caps at $1,123.07, total deductions $21,999.27, take home $63,000.73, about $5,250 a month.

More about the Canada Income Tax Calculator

How the 2026 federal brackets actually work

Canada taxes income in five federal layers for 2026, 14%, 20.5%, 26%, 29% and 33%, and each layer only touches the dollars inside it. The headline change this year is the bottom rate: it was cut from 15% to 14% effective July 2025, and 2026 is the first full tax year at 14%. On the first $58,523 of income that cut alone saves about $585 versus the old rate.

That layering is why your marginal rate (the rate on your last dollar) is always higher than your effective rate (total tax divided by income). The calculator shows both, because the marginal rate answers "what does a $5,000 raise really give me?" while the effective rate is the one that matters for budgeting the year.

Ontario's brackets and the two basic personal amounts

Ontario adds its own five layers for 2026, 5.05% to $53,891, 9.15% to $107,785, 11.16% to $150,000, 12.16% to $220,000 and 13.16% above. Before either government's brackets bite, each lets you subtract a tax free amount: the federal basic personal amount of $16,452 and Ontario's of $12,989. Those are not deductions from income. They become credits worth the lowest bracket rate, so $2,303.28 off the federal bill and $655.94 off the Ontario bill for most earners.

Note that other provinces run entirely different brackets and basic amounts. This page uses Ontario's 2026 schedule, so the provincial figure is right for Ontario earners and only directional anywhere else.

CPP and CPP2: the deductions that cap out

CPP takes 5.95% of your earnings between the $3,500 basic exemption and the 2026 maximum pensionable earnings of $74,600, a maximum of $4,230.45. Then CPP2, the second tier, takes another 4% on earnings between $74,600 and the 2026 additional maximum of $85,000, up to $416. Combined, no employee pays more than $4,646.45 in CPP for 2026, no matter how high the salary.

That cap is why payroll deductions flatten out for high earners: on a $200,000 salary the CPP line is exactly the same $4,646.45 as on an $85,000 salary. Your employer matches your CPP contributions, so the true cost of the program is double what you see on your stub.

EI: the premium you stop paying mid year

Employment Insurance costs employees 1.63% of insurable earnings in 2026, up to maximum insurable earnings of $68,900, so the most any employee pays is $1,123.07 for the year. Once your year to date earnings pass $68,900, EI simply stops coming off your paycheque, which is why late year pay stubs look a little fatter.

Quebec runs a separate parental insurance plan (QPIP) with its own rates, so Quebec earners pay slightly different payroll premiums than the ones shown here. Your employer pays EI at 1.4 times your rate on top.

What this estimate leaves out

Honesty matters with tax math, so here is the fine print. The calculator applies only the two basic personal amount credits. It skips the Ontario Tax Reduction and the LIFT credit, which both cut Ontario tax for lower earners, and it ignores RRSP contributions, union dues, medical expenses and every other deduction and credit that lowers a real bill. It also does not model Quebec's QPIP rates or any other province's brackets.

None of that makes the estimate useless; it makes it a ceiling for most filers rather than a floor. It answers "roughly what lands in my account?", the detailed answer to "exactly what do I owe?" belongs to tax software or an accountant with your full return in front of them.

Putting the numbers to work

Three uses pay for themselves. First, job offers: run the same salary at different income levels and the take home gap tells you what a raise or a new offer is really worth after every deduction. Second, pay stub checks: if the calculator says your CPP should have maxed out in October but your November stub still shows a deduction, something is off. Third, RRSP planning: your marginal rate tells you the immediate tax value of every RRSP dollar you contribute.

Run the numbers once a year or whenever income changes. Brackets, maximums and basic amounts are indexed to inflation, so a figure that was right last year deserves a fresh thirty seconds this year.

How to use the Canada Income Tax Calculator

Enter your annual gross income, salary before any tax or deductions.
Confirm Ontario as your province (provincial tax uses the 2026 Ontario brackets).
Press Calculate, every figure is an estimate for planning, not tax advice.

Frequently asked questions

How is my Canadian income tax estimated?

In two moves. First it knocks the 2026 standard deduction off your gross income ($16,100 if you're single, $32,200 married filing jointly). Then it runs what's left through the real 2026 IRS brackets, 10%, 12%, 22%, 24%, 32%, 35%, 37%, with each slice of income taxed at its own rate. The dollars sitting in a bracket are the only ones paying that bracket's rate.

Which province does the provincial tax cover?

Ontario only, using its 2026 brackets (5.05% to $53,891 up to 13.16% above $220,000) and its $12,989 basic personal amount. Every other province and territory has its own brackets and basic amounts, so if you earn elsewhere the federal, CPP and EI figures still apply but the provincial line is only directional.

What are CPP and CPP2, and why do they stop growing?

CPP is the Canada Pension Plan: 5.95% of earnings between the $3,500 exemption and $74,600 in maximum pensionable earnings (max $4,230.45 for 2026). CPP2 is the second tier: 4% on earnings from $74,600 to $85,000 (max $416). Both cap out by law, so no employee pays more than $4,646.45 combined in 2026 regardless of salary.

What is EI and when do I stop paying it?

EI is Employment Insurance: 1.63% of your insurable earnings in 2026, up to maximum insurable earnings of $68,900, a maximum premium of $1,123.07. Once your earnings for the year pass $68,900, EI deductions stop for the rest of the year. Quebec workers pay slightly different premiums because of the separate QPIP plan.

What does "basic personal amount" mean?

Think of it as the slice of income nobody taxes: $16,452 federally and $12,989 in Ontario for 2026. It does not come off your income as a deduction. It works as a credit at the lowest bracket rate, worth $2,303.28 off the federal bill and $655.94 off the Ontario bill. Every resident gets it, which is why even modest earners see a meaningful credit in the results.

Is Quebec covered by this calculator?

Partly. The federal tax, CPP and EI figures apply in Quebec, but the province runs its own tax system with different brackets, plus the separate QPIP parental insurance plan with its own premium rates instead of the standard EI setup. Quebec earners should treat the provincial and payroll lines as rough guides rather than exact figures.

Does it handle RRSP contributions or other deductions?

It skips all of them. RRSP contributions, union dues, medical expenses, charitable donations and the various child and education credits are left out entirely. Since those all lower a real bill, read this estimate as a ceiling for most filers rather than a floor, and check your marginal rate in the results, because it tells you the immediate tax value of every RRSP dollar you put in.

Can I use this to file my taxes in Canada?

Do not file with it. This is a planning estimate, not tax software and not tax advice, real returns turn on exact withholding, credits, deductions, provincial specifics and mid year changes this page deliberately leaves out. When it is time to file, use CRA certified tax software or a tax professional.

What are the federal tax brackets for 2026 in Canada?

2026 federal brackets are 15%, 20.5%, 26%, 29% and 33%. Provincial tax is added on top, the calculator above combines both for your province.

Do I pay CPP and EI on all my income?

No. In 2026 you pay CPP at 5.95% only on earnings between C$3,500 and C$74,600 (max C$4,230.45), plus CPP2 at 4% on earnings from C$74,600 to C$85,000 (max C$416). EI is 1.63% on earnings up to C$68,900 (max C$1,123.07). Once you hit each ceiling, deductions stop for the year.

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