Federal vs provincial tax
Every employee pays federal income tax. Your province or territory adds its own brackets, credits, and in some cases a surtax or health premium. Quebec residents also receive a federal abatement.
paycheque.app · 2026
How much of your salary do you actually take home?
How is take-home pay calculated in Canada?
Canadian take-home pay is gross salary minus federal income tax, provincial or territorial tax, CPP or QPP, and EI. Quebec also deducts QPIP and uses Revenu Québec provincial tax. Choose a province — this calculator does not assume one.
- Payroll year
- 2026
- Federal formula
- CRA T4127 Option 1
- Claim code used
- 1 (basic personal amount)
Tax year: 2026 Canada Last updated: September 5, 2026 Methodology
Source: T4032-OC Payroll Deductions Tables – CPP, EI, and income tax deductions – In Canada beyond the limits of any province/territory or outside Canada (January 1, 2026); TD1 2026 Personal Tax Credits Return
Calculate your estimated Canadian take-home pay by salary, province, and pay frequency.
What affects your paycheck?
CPP and EI explained
CPP (or QPP in Quebec) and EI are deducted from employment income up to annual maximums. They are not income tax, but they do reduce take-home pay and generate federal and provincial tax credits.
Gross vs net income
Gross is the salary on your offer letter. Net is what lands in your account after tax, CPP or QPP, EI, and any payroll deductions you or your employer add.
Marginal vs effective tax rate
Your marginal rate is the rate on the next dollar. The effective rate shown in the results is estimated income tax divided by gross salary — usually the more useful number for comparing offers.
Choose your province
Each page includes the same calculator with province-specific tax notes. We never assume your province on the homepage.
Popular Ontario salaries
Ready-made estimates for common Ontario salaries. Other provinces have their own salary pages where we have enough distinct search intent.
Other calculators
Biweekly vs monthly pay
Biweekly pay splits the same annual estimate across 26 periods. Monthly uses 12. The annual tax, CPP, and EI totals stay the same in this calculator; only the per-cheque amount changes.
Frequently asked questions
How is take-home pay calculated in Canada?
Estimated take-home pay is your gross salary minus federal and provincial or territorial income tax, CPP or QPP, EI, and any optional deductions you enter. This calculator uses CRA T4127 payroll deduction formulas for 2026, with Revenu Québec parameters for Quebec provincial tax.
How much tax do I pay on my salary?
Canada uses progressive tax brackets federally and in each province or territory. You do not pay the top rate on your whole salary. This page shows estimated income tax and an effective tax rate, which is total estimated tax divided by gross salary.
How much CPP is deducted?
For 2026, employees contribute 5.95% of pensionable earnings between the $3,500 basic exemption and the $74,600 YMPE, up to $4,230.45. Earnings between $74,600 and $85,000 also attract a 4% second additional contribution (CPP2), up to $416. Quebec employees contribute to QPP instead.
How much EI is deducted?
For 2026, the employee EI rate outside Quebec is 1.63% of insurable earnings up to $68,900, with a maximum premium of $1,123.07. Quebec employees pay a lower EI rate and also pay QPIP.
What is the difference between gross and net pay?
Gross pay is your salary before deductions. Net pay — take-home — is what remains after income tax, CPP or QPP, EI, and other payroll deductions such as RRSP or union dues.
Why does my actual paycheck differ from this calculator?
Employers may withhold differently based on your TD1 claims, taxable benefits, pension plan, union dues, additional tax requested, multiple jobs, or mid-year hiring. This tool estimates a full-year employee claiming the basic personal amount.
Is this calculator accurate?
It follows official CRA payroll formulas and published 2026 rates. It is still an estimate. Use the CRA Payroll Deductions Online Calculator or a qualified professional for official withholding.
How often are Canadian tax brackets updated?
Federal brackets and many provincial amounts are indexed each January. Some provinces also make mid-year changes. This site versions tax data by year so annual updates stay isolated from the rest of the application.