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TAX YEAR 2026 · RATES CHECKED OCTOBER 2026

Canada Income Tax Calculator 2026

This calculator combines 2026 federal tax with Ontario provincial tax, CPP and EI premiums, the way a Canadian payslip actually stacks them. Pick a salary and you see each layer separately, plus the take-home at the end. Other provinces run different rates and credits, so results outside Ontario will vary.

Calculate your Canada take-home pay

Income tax and employee contributions, 2026 rates.

Take-home pay / year—
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Effective rate
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Marginal rate
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Monthly take-home
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Tax freedom day
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Estimates for a single employee with standard allowances, calculated in your browser. Rates checked October 2026. Not tax advice.

The system

How income tax works in Canada

Canadians pay two income taxes on the same salary. Federal tax for 2026 starts at 14% and rises through five bands to 33% on income above $258,482. The lowest federal rate was cut from 15% to 14% for 2026. Everyone also gets a basic personal amount, $16,452 federally and $12,989 in Ontario. In law these are credits worth the lowest rate, not allowances, but the maths comes out the same, and the calculator treats them as amounts taken off before the bands apply. One wrinkle: the federal amount shrinks to $14,829 at incomes between $181,440 and $258,482, and that phase-down is not modelled here.

CPP and EI premiums come off pay before anything else feels optional. CPP takes 5.95% of earnings between $3,500 and $74,600, then a second tier, CPP2, takes 4% on earnings up to $85,000. EI takes 1.63% up to $68,900 of insurable earnings. Both stop once their caps are hit, which is why Canadian take-home pay often rises slightly late in the year. Ontario also levies a surtax on larger provincial tax bills and a health premium of up to $900. Neither is in this model, so Ontario tax at higher incomes, roughly above $92,000, will be understated.

What this calculator leaves out

  • Provincial tax: Ontario shown; other provinces and territories differ
  • Federal and Ontario basic personal amounts are non-refundable credits at the lowest rate in law; they are modelled as allowances, which is arithmetically identical for the standard case
  • Federal basic personal amount phases down from $16,452 to $14,829 between $181,440 and $258,482 of income; the phase-down is not modelled
  • Ontario surtax (20% on Ontario tax over $5,818, plus 36% over $7,446) and the Ontario Health Premium (up to $900) are not modelled, so Ontario tax is understated at higher incomes
  • Canada employment amount credit and credits for CPP/EI contributions are not modelled
  • Bracket thresholds shown in the file are statutory thresholds minus the basic personal amount, because the engine applies brackets after the allowance
Rates

Canada tax brackets (2026)

Taxable income bandRate
Up to $42,07114%
$42,071 – $100,59320.5%
$100,593 – $164,98826%
$164,988 – $242,03029%
Above $242,03033%

Bands apply to taxable income — what is left after the basic personal amount (federal) of $16,452.

Ontario brackets

Taxable income bandRate
Up to $40,9025.05%
$40,902 – $94,7969.15%
$94,796 – $137,01111.16%
$137,011 – $207,01112.16%
Above $207,01113.16%

Ontario is charged on income after its own allowance of $12,989, and is included in every result on this page.

Worked examples

Take-home pay at four salaries in Canada

Gross salaryIncome taxSocialTake-homeEffective rate
$35,000$3,708$2,445$28,84717.6%
$70,000$11,782$5,080$53,13824.1%
$140,500$34,633$5,770$100,09728.8%
$281,000$92,650$5,770$182,58035.0%

On $70,000 a year, take-home pay in Canada is $53,138 — about $4,428 a month — after $11,782 in income tax and $5,080 in social contributions. Salary levels are the local equivalents of US$25,000 / $50,000 / $100,000 / $200,000 at the ECB reference rate of 28 October 2026, rounded.

Payroll contributions

Social contributions in Canada

ContributionRateApplies fromApplies up to
Canada Pension Plan 5.95% $3,500 $74,600
CPP2 (second additional CPP) 4% $74,600 $85,000
Employment Insurance 1.63% First $0 $68,900

Employee side only. Employer contributions, where a country charges them, do not come out of your pay and are not in these results.

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FAQ

Canada tax — frequently asked questions

Federally it is $16,452, and in Ontario it is $12,989. Both work as credits calculated at the lowest tax rate, which means each dollar of personal amount saves you tax at 14% federally and 5.05% in Ontario. The federal amount phases down to $14,829 at high incomes, a detail this calculator leaves out.
Parliament cut the first federal band from 15% to 14.5% for 2025 and to 14% for 2026. The 14% rate applies to the first $58,523 of taxable income. Because the basic personal credit is also calculated at the lowest rate, the credit is worth $2,303 in 2026.
CPP is 5.95% on earnings between $3,500 and $74,600, which caps the main contribution at $4,230.45, plus CPP2 at 4% on earnings between $74,600 and $85,000, capped at $416. EI is 1.63% on earnings up to $68,900, a maximum of $1,123.07. Once you hit those ceilings the deductions stop.
No, and at higher incomes that matters. Ontario adds a surtax of 20% on provincial tax above $5,818 and a further 36% above $7,446, taking the effective top Ontario rate to about 20.53%. The calculator also leaves out the Ontario Health Premium of up to $900 a year, so treat high-income results as slightly optimistic.
Sources & method. Rates and bands: PwC Tax Summaries / Canada Revenue Agency, checked 29 October 2026. The calculator models a single employee using standard allowances only; the full method, including what is left out and why, is on the Methodology page. Estimates only — not tax advice.