Canada income tax calculator for 2026
Enter your employment income and this Canada income tax calculator estimates your 2026 federal tax, CPP and EI, and your pay before provincial tax.
Last updated 2026 tax year
Estimates only. This is not tax, legal or financial advice.
How to use the Canada income tax calculator
- Enter your yearly employment income before tax.
- Choose Ontario, British Columbia or Alberta, or leave Federal only.
- Press Calculate tax.
- Read your take-home pay per year, month, two weeks and week.
- Check the breakdown for federal tax, the basic personal amount credit, CPP and EI.
How the Canada income tax calculator works
Canada taxes income at two levels: federal and provincial or territorial. This calculator works out the federal part for 2026, plus the Canada Pension Plan and Employment Insurance deductions taken from every paycheque. Choose Ontario, British Columbia or Alberta to add provincial tax too; otherwise the result is labelled before provincial tax.
Federal tax uses five brackets from 14% to 33%. Everyone then claims the basic personal amount, a non-refundable credit worth 14% of $16,452 for incomes up to $181,440. Above that, the amount falls in a straight line to $14,829 at $258,482 and stays there.
Formula
Federal tax = bracket tax − 14% × basic personal amount, with a minimum of zero. Brackets: 14% up to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482 and 33% above.
CPP = 5.95% of earnings between $3,500 and $74,600, plus 4% of earnings between $74,600 and $85,000. EI = 1.63% of earnings up to $68,900.
Example
On $80,000, bracket tax is 14% of $58,523 ($8,193.22) plus 20.5% of the remaining $21,477 ($4,402.79), or $12,596.01. The basic personal amount credit is 14% of $16,452, or $2,303.28, so federal tax is $10,292.73.
CPP is $4,230.45 on the first band plus $216 on the second, $4,446.45 in total, and EI is $1,123.07. Take-home pay before provincial tax is $64,137.75 a year, about $5,345 a month.
Tips and common mistakes
Add your province
In Ontario the example's take-home pay falls to $58,933.22 once provincial tax, surtax and the $750 Ontario Health Premium are added. Other provinces and territories aren't included yet.
Quebec works differently
Quebec residents pay into the Quebec Pension Plan instead of the CPP and have a lower EI rate, so their deductions differ from the figures here.
RRSP contributions lower your tax
Contributions to a Registered Retirement Savings Plan reduce taxable income. They aren't included, so the tax shown may be higher than you'll actually pay.
Earning an hourly wage?
Convert your hourly wage to a yearly salary and enter that figure here.
Plan a home purchase
Before house hunting, compare your monthly pay with a payment from the Canada mortgage calculator.
Frequently asked questions
Does it include provincial tax?
Yes, for Ontario, British Columbia and Alberta, using 2026 brackets, basic personal amounts and, for Ontario, the surtax and Health Premium. Other provinces and territories aren't included yet.
What is the basic personal amount?
An amount of income everyone can earn before federal tax applies. It is claimed as a credit of 14% of the amount, which is $2,303.28 for 2026 on incomes up to $181,440.
Are other tax credits included?
No. Credits such as the Canada employment amount and those for CPP and EI contributions are left out, so the federal tax shown can be slightly higher than your real bill.
What are CPP and CPP2?
CPP is 5.95% of earnings between $3,500 and $74,600. The second tier, CPP2, adds 4% on earnings between $74,600 and $85,000.
Which year do the rates cover?
The 2026 tax year, as published by the Canada Revenue Agency.