Canada Take-Home Pay Calculator (2026)
Enter your gross annual salary and see the federal side of your pay: income tax after the basic personal amount, CPP, the second CPP tier and Employment Insurance.
Enter your salary to see the breakdown.
Federal only. Provincial and territorial income tax adds several points and differs everywhere — Quebec runs its own QPP and QPIP instead of CPP/EI. Estimate for a single filer claiming the basic personal amount, with no other credits. Not tax advice.
How the calculation works
CPP is 5.95% of earnings between the $3,500 basic exemption and the $74,600 YMPE, plus CPP2 at 4% on earnings from the YMPE up to the $85,000 YAMPE.
EI is 1.63% of insurable earnings up to $68,900. Your employer pays 1.4 times your EI premium on top.
Federal tax runs through the 2026 brackets (14% to 33%), then the non-refundable credits, meaning the basic personal amount plus your CPP and EI contributions, are valued at the lowest rate and subtracted.
Worked example: an $85,000 salary
On a gross salary of $85,000, the calculator returns $10,510 of federal income tax and $5,770 of CPP, CPP2 and EI, leaving $68,720 a year, or $5,727 a month. That is an effective deduction rate of 19.2%, before provincial tax.
What is taken out of a Canadian paycheque
- Canada Pension Plan (CPP)
- For 2026 the employee rate is 5.95% on earnings between the $3,500 basic exemption and the $74,600 YMPE. The employer pays a matching amount.
- CPP2
- A second tier of 4% on earnings between the YMPE ($74,600) and the YAMPE ($85,000), also matched by the employer.
- Employment Insurance (EI)
- The employee premium is 1.63% of insurable earnings up to $68,900. The employer pays 1.4 times the employee premium.
- Federal income tax
- Five brackets in 2026: 14% up to $58,523, 20.5% up to $117,045, 26% up to $181,440, 29% up to $258,482 and 33% above. Non-refundable credits, including the basic personal amount and your CPP and EI contributions, reduce the tax at the lowest rate.
Sources
- CRA: CPP contribution rates, maximums and exemptions
- CRA: CPP2 contribution rates and maximums
- CRA: EI premium rates and maximums
- CRA: 2026 federal tax rates and income brackets
Last reviewed: September 2026
Frequently asked questions
Where is provincial tax?
Not included. Rates and brackets differ in every province, so this is the federal baseline, and provincial tax comes on top of it.
Does this work for Quebec?
Only partly. Quebec collects QPP instead of CPP, has its own parental insurance plan and a reduced federal EI rate, so a Quebec paycheque looks different.
What is CPP2?
A second contribution tier introduced in 2024 on earnings above the YMPE. It is capped at the YAMPE and builds a higher future benefit.
How do I calculate my take-home pay in Canada?
Subtract CPP, EI and income tax (federal plus provincial) from your gross pay. The calculator above handles CPP, CPP2, EI and federal tax, so you only add your province's tax to get the full figure.
What does a payroll calculator for Canada need to include?
CPP, CPP2, EI and income tax withholding are the four pieces on every Canadian payroll. Employers also match CPP and pay 1.4 times the employee EI premium, which sit on top of gross pay.
What is the difference between gross pay and net pay in Canada?
Gross pay is your salary before deductions; net pay is what you receive after CPP, EI and income tax. The result panel shows both and the effective deduction rate.
How is this different from the CRA payroll calculator?
The CRA payroll deductions online calculator works out withholding for a specific pay period and province. This page is a faster annual estimate at the federal level, with a worked example you can compare against.
Is this the same as a salary calculator for Ontario?
Not exactly. Ontario adds its own provincial income tax on top of the federal figures shown here, so your Ontario take-home pay is lower than this result.
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