Canadian Take-Home Pay Calculator
Calculate your net pay after all deductions: federal tax, provincial tax, CPP contributions, EI premiums, RRSP contributions, and student loan payments. Breakdowns by annual, monthly, bi-weekly, weekly and hourly.
Pay Details
Take-Home Pay
Annual
$55,616
Monthly
$4,635
Bi-weekly
$2,139
Weekly
$1,070
Hourly
$27
Where your tax goes — two layers
Tax Rates
Combined Effective Rate
26.0%Combined Marginal Rate
30.0%Federal Marginal Rate
20.5%Provincial Marginal Rate
9.2%Expecting a bonus?
See how much tax is deducted from a bonus on top of your salary
Received a severance?
Calculate tax on severance and check RRSP rollover eligibility
Want per-paycheque detail? Try our Payroll Deductions Calculator →
What's Deducted from Your Paycheque?
- Federal Income Tax — Progressive brackets, BPA credit reduces the first ~$16,452 tax-free.
- Provincial Income Tax — Each province has its own rates and BPA.
- CPP — Canada Pension Plan at 5.95% on earnings between $3,500 and $74,600 (2026), plus CPP2 at 4% on earnings up to $85,000.
- EI — Employment Insurance at 1.63% on up to $68,900 of insurable earnings (2026). Quebec uses 1.30%.
- RRSP — Optional; contributions reduce your taxable income.
All of these deductions appear on your year-end T4 slip — see our box-by-box T4 explainer for what each Box 14 / 16 / 18 / 22 / 44 figure represents.
Compare by province
Worked take-home examples (2026)
Net pay after federal tax, provincial tax, CPP/CPP2 and EI, computed with this calculator's engine for 2026 (no RRSP or student-loan deductions). Your result varies by province — change the province selector above to match.
| Salary & province | Federal tax | Provincial tax & levies | CPP + CPP2 | EI | Take-home | Avg rate |
|---|---|---|---|---|---|---|
| $40,000 · Ontario | $3,297 | $1,814 | $2,172 | $652 | $32,065 | 20.0% |
| $80,000 · Ontario | $10,293 | $5,205 | $4,446 | $1,123 | $58,933 | 26.0% |
| $120,000 · British Columbia | $18,655 | $8,060 | $4,646 | $1,123 | $87,515 | 27.0% |
| $150,000 · Alberta | $26,455 | $11,954 | $4,646 | $1,123 | $105,821 | 29.0% |
Average (effective) rate = total deductions ÷ gross. The marginal rate on your next dollar is higher — see the rate cards in the calculator above.
2026 federal tax brackets
Federal income tax is layered: each rate applies only to the income inside its band. The first $16,452 (2026 Basic Personal Amount) is effectively tax-free at the federal level. Each province adds its own brackets and BPA on top — the calculator stacks both automatically.
| Taxable income | Federal rate |
|---|---|
| $0 – $58,523 | 14.0% |
| $58,523 – $117,045 | 20.5% |
| $117,045 – $181,440 | 26.0% |
| $181,440 – $258,482 | 29.0% |
| $258,482+ | 33.0% |
The lowest federal rate was cut from 15% to 14% (effective 1 July 2025; a blended 14.5% applied for 2025, 14% from 2026 onward). Source: CRA — Canadian income tax rates for individuals.
Frequently asked questions
What is deducted from my paycheque in Canada?
Your Canadian paycheque has four mandatory deductions: federal income tax, provincial income tax, Canada Pension Plan (CPP) at 5.95%, and Employment Insurance (EI) at 1.63%. Optional deductions like RRSP contributions further reduce taxable income.
How much CPP and EI do I pay in 2026?
For 2026, CPP is 5.9% on earnings between $3,500 and $74,600 (YMPE), plus CPP2 at 4.0% on earnings between $74,600 and $85,000 (YAMPE). EI is 1.6% on insurable earnings up to $68,900. Quebec residents pay 1.3% EI due to QPIP.
How do RRSP contributions affect my take-home pay?
RRSP contributions reduce your taxable income dollar-for-dollar, which lowers both federal and provincial income tax. The net cost of an RRSP contribution is therefore the contribution minus the marginal-rate refund — for someone in a 30% marginal bracket, $1,000 contributed costs only $700 of take-home.
What's the difference between gross pay and take-home (net) pay?
Gross pay is your salary before any deductions. Take-home (net) pay is what actually lands in your bank account after federal tax, provincial tax, CPP/CPP2, and EI are withheld — plus any voluntary deductions like RRSP, pension, or benefits. Across the provinces, total mandatory deductions typically run from about 20% of gross at low incomes to 40–45% at high incomes.
Why is my effective tax rate lower than my tax bracket?
Canada uses progressive brackets, so only the income inside each band is taxed at that band's rate — not your whole salary. Your top bracket is the marginal rate (the tax on your next dollar); the effective (average) rate is total tax ÷ total income, which is always lower. The Basic Personal Amount ($16,452 federally in 2026) also shelters the first slice of income entirely.
Which province has the highest take-home pay?
Alberta and the territories generally leave the most in your pocket because of low provincial rates and (in Alberta) a high Basic Personal Amount. Quebec collects the most provincial tax but offsets it with a 16.5% federal abatement and richer benefits. Use the province selector above to compare your exact salary side by side.
Is take-home pay calculated the same for hourly and salaried workers?
Yes — the annual tax, CPP and EI are the same for a given annual income. The calculator simply divides the annual net figure into monthly, bi-weekly, weekly, and hourly amounts (assuming a 40-hour week, 52 weeks) so you can match it to your pay cycle.
Does a bonus get taxed at a higher rate?
A bonus is taxed as ordinary income, but payroll often withholds more tax up front using the bonus (lump-sum) method, so the deduction looks larger on that cheque. The extra is reconciled when you file. To see the exact withholding on a bonus, use the bonus tax calculator.
Sources
Last updated April 2026. Reflects 2026 tax year rates.
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