Canadian Income Tax Calculator

1. Enter your yearly employment income before deductions and pick your province or territory.
2. Add an RRSP deduction or capital gains if they apply to you. Leave them blank if they do not.
3. Read your take-home pay, then check the split between federal tax, provincial tax, CPP and EI.

What each result tells you:

Canadian income tax is a yearly tax on the taxable income of people who live in Canada. Two levels of government charge it. The Government of Canada sets the federal rates. Each province and territory sets its own rates on top.

The Canada Revenue Agency, or CRA, collects both taxes for every province and territory except Quebec. Quebec residents file a separate provincial return with Revenu Quebec.

The system is progressive. The CRA states that each rate applies only to its own income bracket, not to all income. A raise never lowers your pay after tax. Only the dollars above a threshold are taxed at the higher rate.

Employees also pay two payroll amounts. Canada Pension Plan (CPP) contributions build a retirement pension. Employment Insurance (EI) premiums fund benefits when work stops. They are not income tax, but they come off the same pay.

A take-home estimate is not a tax return. A return adds credits, deductions and benefits that depend on your family, age and expenses.

The calculator finds your taxable income, applies each bracket rate to its own slice, then subtracts basic credits. It adds CPP and EI at the end.

1. CPP: 5.95 percent of pay between 3,500 and 74,600, to a maximum of 4,230.45. CPP2 is 4 percent of pay between 74,600 and 85,000, to a maximum of 416.00.
2. EI: 1.63 percent of pay up to 68,900, to a maximum of 1,123.07.
3. Taxable income: pay plus one half of capital gains, less the RRSP deduction and the enhanced part of CPP.
4. Federal tax: bracket tax less 14 percent of the basic personal amount, base CPP, EI and the Canada employment amount of 1,501.
5. Provincial tax: bracket tax less the lowest provincial rate times the provincial basic personal amount, base CPP and EI.

These are the 2026 federal brackets published by the CRA:

The federal basic personal amount for 2026 is 16,452 for net income up to 181,440. It falls in a straight line to 14,829 at 258,482 and above.

An Ontario employee earns 80,000 in 2026 with no RRSP deduction and no capital gains.

Meaning: the employee keeps 60,302.63, or 2,319.33 every two weeks. The average rate is 24.62 percent. The next 100 dollars of pay costs 28.46 in income tax, a marginal rate of 28.46 percent.

A 5,000 RRSP deduction lowers income tax by 1,482.50 in this example.

Five inputs move the result. Each one has a clear effect.

Province or Territory

Federal tax is the same everywhere. The provincial part is not. On 80,000 of pay, provincial tax runs from 2,889.02 in Nunavut to 8,749.03 in Nova Scotia in this estimate.

Income Level

More income pushes the top slice into higher brackets. An Alberta employee earning 150,000 pays 25,302.14 in federal tax and 11,470.38 in Alberta tax here.

RRSP Deduction

An RRSP deduction lowers taxable income. The saving equals the deduction times your marginal rate, so it is worth more at higher incomes.

Capital Gains

One half of a capital gain is taxable. A B.C. employee earning 70,000 pays 2,820.00 more income tax after a 20,000 gain. No CPP or EI applies to the gain.

CPP and EI Ceilings

CPP and EI stop growing once pay passes their ceilings. The most an employee pays in 2026 is 4,230.45 for CPP, 416.00 for CPP2 and 1,123.07 for EI.

Federal tax is usually the larger part, but the provincial part explains most of the gap between two places. This table shows the 2026 rates and basic personal amounts the calculator uses.

The same 80,000 salary with no other inputs gives these estimates:

Ontario adds a surtax on higher provincial tax and a health premium of up to 900. Both are in the Ontario figure. To turn any yearly figure into an hourly one, use the salary calculator.

Before You Accept a Job Offer

Compare offers by take-home pay, not by gross pay. Enter each salary and read the pay-period figure.

When You Plan an RRSP Contribution

Enter the deduction and read the income tax saved. Check your RRSP deduction limit on your latest notice of assessment first.

When You Move Between Provinces

Switch the province and keep the income the same. The CRA uses your province of residence on December 31.

When You Sell an Investment

Add the gain to see the extra tax. The guide to capital gains tax covers the basics. That guide is written for a United States audience, so use it for concepts only.

When You Have Children

Income also affects benefits. The Canada Child Benefit calculator covers that payment.

1. Thinking a Raise Can Lower Your Pay

Only the income above a threshold is taxed at the higher rate. Moving into a new bracket never reduces take-home pay.

2. Entering Net Pay Instead of Gross Pay

The tool needs pay before deductions. Entering net pay counts the deductions twice.

3. Mixing Up Average and Marginal Rates

The average rate describes all of your income. The marginal rate describes the next dollar. The guide on effective tax rate explains the difference.

4. Adding the Whole Capital Gain to Income

Only one half of a capital gain is taxable. Enter the full gain and let the tool halve it.

5. Treating CPP and EI as Income Tax

They are separate payroll amounts with their own ceilings. They stop once you reach the yearly maximum.

6. Using Old Rates

The lowest federal rate is 14 percent for 2026. It was 15 percent in earlier years and 14.5 percent for 2025. Brackets also rise with inflation each year.

The estimate is exact for the rates it uses, but it models a simple case: one employee, one job, basic credits only. It is an estimate, not tax advice. Real returns differ.

The 2026 federal rates are 14 percent up to 58,523, 20.5 percent up to 117,045, 26 percent up to 181,440, 29 percent up to 258,482 and 33 percent above that. Each rate applies only to the income inside its bracket.

The federal basic personal amount is 16,452 for 2026 when net income is 181,440 or less. It shrinks to 14,829 for net income of 258,482 or more. At the 14 percent rate, the full amount removes 2,303.28 of federal tax.

An employee pays up to 4,230.45 in CPP, up to 416.00 in CPP2 and up to 1,123.07 in EI for 2026. CPP is 5.95 percent of pay between 3,500 and 74,600. EI is 1.63 percent of pay up to 68,900.

It depends on income, because each province has different brackets and credits. On an 80,000 salary in this tool, Nunavut has the lowest provincial tax at 2,889.02. Run your own income to compare.

Quebec collects its own provincial tax through Revenu Quebec, so the CRA does not publish its rates. For Manitoba, two CRA pages showed different 2026 bracket thresholds when we checked on 2026-10-02, so we left it out instead of guessing.

One half of a capital gain is added to taxable income. A 20,000 gain adds 10,000 of taxable income, taxed at your own bracket rates. The other half is not taxed.

An RRSP deduction lowers taxable income, which lowers income tax. In the Ontario example, a 5,000 deduction on an 80,000 salary cuts income tax by 1,482.50. You see it as a refund when your employer has already withheld tax on that income.

No. Self-employed people pay both the employee and employer shares of CPP and usually pay no EI. They also deduct business expenses. This tool models an employee only.

Payroll uses the claim amounts on your TD1 forms, your benefits and your pay schedule. Pension plans, union dues and taxable benefits also change the result. Three provinces used prorated payroll amounts from July 2026.

The 2026 return is filed in 2027. Check the Canada Revenue Agency website for the exact due date, because this page covers rates and amounts only.

No. The calculation runs in your browser and nothing is sent to our servers. Anything you Save stays in this browser only.

• Current year tax rates and income brackets (2026) (Canada Revenue Agency: federal, provincial and territorial brackets for the 2026 tax return).
• Indexation adjustment for personal income tax and benefit amounts (Canada Revenue Agency: 2026 basic personal amount and Canada employment amount).
• T4127 Payroll Deductions Formulas, 122nd Edition, effective January 1, 2026 (Canada Revenue Agency: CPP, CPP2 and EI rates, provincial basic amounts, Ontario surtax and health premium).
• T4127 Payroll Deductions Formulas, 123rd Edition, effective July 1, 2026 (Canada Revenue Agency: mid-year changes for British Columbia, Newfoundland and Labrador and Prince Edward Island).
• Calculating and reporting your capital gains and losses (Canada Revenue Agency: capital gains reporting and the one-half inclusion rate).