Taxes for Doctors in Canada (2026)
Physicians in Canada rank among the highest-earning professionals. Many are incorporated, making tax planning complex but rewarding. Understanding federal and provincial rates helps optimize compensation structures.
Quick Tax Snapshot
Based on a typical doctors salary of $250,000 in Ontario (2026).
Gross Salary $250,000
Federal Income Tax -$53,524
Ontario Tax & Health Premium -$34,161
CPP Contributions -$4,646
EI Premiums -$1,123
Estimated Take-Home (Annual) $156,546
Effective tax rate: 37.4% • Marginal federal rate: 29.3% • Marginal Ontario tax & levy rate: 20.5%
Gross Salary
$250,000
Typical median (CAD)
Take-Home Pay
$156,546
After all deductions (ON)
Effective Rate
37.4%
Combined tax rate
Monthly Take-Home
$13,045
Approximate monthly
Key Tax Deductions for Doctors
- ✓ College of Physicians and Surgeons registration fees
- ✓ CMPA (Canadian Medical Protective Association) membership
- ✓ CMA and provincial medical association dues
- ✓ CME (Continuing Medical Education) expenses
- ✓ Business expenses if incorporated (salary/dividend mix, retained earnings)
- ✓ RRSP or IPP (Individual Pension Plan) contributions
Frequently asked questions
Do most doctors incorporate in Canada?
Yes, the majority of self-employed physicians incorporate a Medical Professional Corporation (MPC). This allows them to retain earnings in the corporation at the small business tax rate (~9-12.2% federally and provincially combined), defer personal tax, and potentially income-split with family members.
What is the top marginal tax rate for a physician?
The combined federal + provincial top marginal rate in 2026 ranges from about 44.5% in Nunavut to 54.8% in Newfoundland and Labrador, the highest in the country (on income above $1,141,275). Ontario sits at approximately 53.5% and Quebec at about 53.3% (after the 16.5% federal abatement), applying to income above the federal top-bracket threshold of $258,482.
Are CMPA dues tax-deductible?
Yes. CMPA dues and provincial college registration fees are deductible as professional membership dues on line 21200 of your T1 return, or as a business expense if you are incorporated.
What is an Individual Pension Plan (IPP) for doctors?
An IPP is a defined benefit pension plan for incorporated professionals. It can allow significantly higher tax-deductible contributions than an RRSP, especially for physicians over 40, and contributions are made by the corporation rather than personally.
Calculate Your Actual Tax
The snapshot above uses a typical salary. Use our Income Tax Calculator to enter your exact income, province, and tax year for a personalized breakdown.
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