Canada income tax calculator 2026
Work out your 2026 federal and provincial income tax, CPP, EI and take-home pay in every province and territory.
Covers Canada Rates checked Runs in your browser
The calculator uses the 2026 federal and provincial rates published by the Canada Revenue Agency in its payroll deductions formulas (T4127), including the cut in the lowest federal rate to 14%.
How it’s worked out
Example: $60,000 employment income in Ontario, no RRSP.
- CPP: 5.95% of earnings above the $3,500 exemption: $3,361.75. The 1% “enhanced” part ($565) is deducted from income; the rest earns a tax credit.
- EI: 1.63% of $60,000: $978.
- Federal tax: 14% on the first $58,523 and 20.5% on the rest of the $59,435 taxable income, minus 14% credits for the basic personal amount ($16,452), CPP, EI and the Canada employment amount: $5,338.30.
- Ontario tax: 5.05% and 9.15% brackets minus credits: $2,382.20, plus the Ontario Health Premium of $600.
- Take-home pay: $47,339.75 a year, or about $1,820.76 every two weeks.
2026 federal tax brackets
| Taxable income | Rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
The federal basic personal amount is $16,452, reducing gradually to $14,829 for incomes between $181,440 and $258,482.
Same salary, different province
| $60,000 in | Provincial tax | Take-home |
|---|---|---|
| Alberta | $2,631.30 | $47,690.66 |
| British Columbia | $2,567.39 | $47,754.57 |
| Ontario (with Health Premium) | $2,982.20 | $47,339.75 |
CPP, EI and RRSPs in 2026
- CPP: 5.95% on earnings from $3,500 to $74,600 (maximum $4,230.45), plus CPP2 of 4% on earnings from $74,600 to $85,000 (maximum $416).
- EI: 1.63% on insurable earnings up to $68,900 (maximum $1,123.07).
- RRSP: contributions are deducted from taxable income, so each dollar saves tax at your top rate. The calculator shows the tax saving straight away; in practice you get it as a refund unless your employer reduces withholding.
Quebec
Quebec residents pay QPP at 6.3% instead of CPP, a lower EI rate (1.30%) plus the Quebec Parental Insurance Plan (0.43%), and receive a 16.5% reduction in federal tax. Quebec’s own tax return has credits and deductions this calculator doesn’t model, so treat Quebec provincial tax as an estimate.
What isn’t included
Other credits and deductions (such as tuition, medical expenses, childcare, union dues and the Canada Workers Benefit), provincial low-income reductions other than British Columbia’s, and income other than employment income.
Sources
Spotted a figure that's wrong or out of date? Tell us and we'll check it against the source.