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Tax Calculator

Canadian Income Tax
Calculator 2026

Calculate your exact take-home pay — federal tax, provincial tax, CPP, and EI — for any income in all 13 provinces.

Updated for 2026 · 2025 CRA rates · Source: Canada Revenue Agency

Enter your income details

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Take-Home / Year
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Total Deductions
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Per Bi-Weekly Pay
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Effective Tax Rate
Marginal Tax Rate (your next dollar earned)
0%—54%
ℹ️ Estimates only. Verify with CRA or a tax professional. Self-employed CPP is doubled.

2025 Federal Tax Brackets (Current)

Canada uses a graduated (marginal) tax system. You only pay the higher rate on income within that bracket — not on your entire income.

Taxable IncomeFederal RateTax on Bracket
$0 – $57,37515%Up to $8,606
$57,375 – $114,75020.5%Up to $11,762
$114,750 – $158,51926%Up to $11,380
$158,519 – $220,00029%Up to $17,831
Over $220,00033%On every dollar above
ℹ️The federal basic personal amount for 2025 is $16,129. This effectively makes your first $16,129 of income tax-free at the federal level.

2025 CPP & EI Rates (Current)

DeductionRateMaximumOn Earnings Up To
CPP (Employee)5.95%$4,034.10$71,300 (YMPE)
CPP2 (Employee)4.00%$428.00$81,900
EI (Employee)1.66%$1,090.62$65,700

Tax Rates by Province

Click any province to calculate your take-home pay instantly.

Frequently Asked Questions

How is Canadian income tax calculated?
Canada uses a graduated bracket system. You pay 15% on the first $57,375, then 20.5% on the next portion, and so on. Provincial tax is calculated separately using each province's own brackets and added on top. You also pay CPP and EI contributions. Your basic personal amount ($16,129 federally) reduces your tax.
What is the difference between marginal and effective tax rate?
Your marginal rate is the rate on your next dollar of income — the rate of the highest bracket you're in. Your effective rate is your total tax divided by total income. It's always lower than your marginal rate because lower brackets apply to your lower income. For example, someone earning $90,000 in Ontario has a marginal rate of ~29.65% but an effective rate closer to 22%.
Does this calculator include CPP2?
Yes. CPP2 is the second tier of Canada Pension Plan contributions introduced in 2024. In 2025, employees contribute 4% on earnings between $71,300 and $81,900, for a maximum additional contribution of $428. This calculator includes CPP2 automatically.
Which province has the lowest income tax in Canada?
Alberta generally has the lowest provincial income tax, with a flat 10% rate on the first $148,269. Nunavut and Yukon also have relatively low rates. Quebec typically has the highest combined rates, but also provides more government services funded by those taxes.
How much tax do I pay on $75,000 in Ontario?
On a $75,000 salary in Ontario in 2025, you pay approximately $11,200 in federal tax, $4,800 in Ontario provincial tax, $4,034 in CPP, and $1,090 in EI — for a total of about $21,000 in deductions. Your take-home would be approximately $54,000, or about $4,500/month. Use the calculator above for your exact numbers.

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How Canadian Income Tax Works in 2026

Canada uses a progressive marginal tax system, meaning you pay different rates on different portions of your income — not one flat rate on everything. Many Canadians mistakenly think moving into a higher bracket means all their income gets taxed at the higher rate. That's not how it works. Only the income above each threshold is taxed at the higher rate.

For example, if you earn $60,000 in Ontario in 2026, you don't pay 20.5% on all $60,000. You pay 15% on the first $57,375, and only 20.5% on the remaining $2,625. This is the core principle behind Canada's tax brackets.

Federal Tax Brackets 2026

Federal tax rates apply to all Canadians regardless of province. For the 2025 tax year (filed in 2026), the federal brackets are:

Income Range Federal Rate
$0 – $57,37515%
$57,375 – $114,75020.5%
$114,750 – $158,51926%
$158,519 – $220,00029%
Over $220,00033%

Your province adds its own tax on top of the federal rate. This is why two people with the same salary can pay very different amounts depending on where they live.

What Are CPP and EI — And Why Are They Deducted?

Along with income tax, two other deductions come off every Canadian employee's paycheque. CPP (Canada Pension Plan) is a mandatory retirement savings program. Both you and your employer contribute — in 2026, employees contribute 5.95% of earnings between $3,500 and $71,300, up to a maximum of $4,034.10 per year. When you retire, your CPP contributions become your CPP pension payments.

EI (Employment Insurance) provides temporary income if you lose your job, go on maternity leave, or face certain other life events. The 2026 employee EI rate is 1.66% of insurable earnings, up to a maximum of $1,090.62 per year. Unlike CPP, EI premiums are not returned to you directly — they fund the EI program for all Canadians.

Both CPP and EI contributions generate federal tax credits, which is why our calculator applies them as credits against your federal and provincial tax — reducing your actual tax bill slightly.

Provincial Income Tax Rates Compared — 2026

Every province and territory has its own income tax brackets layered on top of the federal rate. Alberta is the most tax-friendly province with no provincial sales tax and a flat 10% provincial rate on income under $148,269. Quebec has the highest provincial rates in Canada but also offers more provincial services and deductions. Ontario sits in the middle for most income levels.

The combined federal + provincial top marginal rate ranges from 44.5% in Nunavut to 54% in Nova Scotia. Most Canadians with employment income between $50,000 and $100,000 face an effective (average) tax rate of 20%–28% — significantly lower than the marginal rate.

What Is the Basic Personal Amount?

The Basic Personal Amount (BPA) is a non-refundable tax credit that every Canadian receives. It means the first $16,129 of your income (federally, in 2026) is effectively tax-free. Each province has its own BPA as well. Our calculator applies both federal and provincial BPAs automatically when computing your tax.

Effective Rate vs Marginal Rate — What's the Difference?

Your marginal rate is the rate you pay on your next dollar of income. Your effective rate (also called average rate) is total tax paid divided by total income. The effective rate is always lower than the marginal rate because of how progressive brackets work. When people talk about "being in the 26% tax bracket," they mean their marginal rate — not that they pay 26% on everything they earn.

Understanding your marginal rate matters for decisions like RRSP contributions. Every $1,000 you contribute to an RRSP saves you money at your marginal rate — so at 33.5% combined federal + Ontario rate, a $1,000 RRSP contribution saves you $335 in taxes today.