Canada Income Tax Calculator
Calculate federal plus provincial income tax, CPP, EI, and your monthly take-home pay for 2026. All 13 provinces and territories supported.
Income Details
Tax Breakdown (Tax Year 2026)
Monthly Take-Home
C$5,464
Federal Tax
C$9,938
Provincial Tax
C$3,985
CPP
C$4,430
EI
C$1,077
Total Tax
C$19,431
Annual Net
C$65,569
Biweekly Take-Home
C$2,522
Marginal Rate
29.65%
Effective Rate
22.86%
How Canadian income tax works
Canada is a two-layer tax system — every dollar is taxed federally, then again by your province. Federal rates range 15% to 33%; provincial rates add anywhere from 4% (Nunavut) to 25.75% (Quebec top). Your combined marginal rate is what matters for planning.
Federal brackets 2026
15% on income up to ~$57,375 — 20.5% to ~$114,750 — 26% to ~$177,882 — 29% to ~$253,414 — 33% above. These are projected from 2025 and indexed to CPI; CRA publishes final numbers each January.
CPP and EI — the other deductions
CPP: 5.95% on earnings between $3,500 and $71,300, plus CPP2 at 4% from $71,300 to $81,200 (2026 projected). EI: 1.64% on first $65,700 of insurable earnings (1.31% in Quebec). These are not tax, but they come off your paycheck.
How RRSP cuts your tax
Every dollar you contribute to an RRSP reduces your taxable income by the same dollar. At a 43% marginal rate, a $10,000 RRSP contribution gives you a $4,300 tax refund — effectively free money that grows tax-deferred.
Frequently Asked Questions
Everything you need to know, in one place.
What are the 2026 federal tax brackets in Canada?
15% on income up to ~$57,375; 20.5% up to ~$114,750; 26% up to ~$177,882; 29% up to ~$253,414; 33% above. These are projected brackets indexed to CPI from 2025 — verify final numbers at canada.ca once CRA publishes.
How does provincial tax work on top of federal?
Every province has its own brackets on top of federal. Ontario ranges 5.05%-13.16%; BC 5.06%-20.50%; Alberta is simpler (flat-ish, 8%-15%); Quebec is highest (14%-25.75%). Your combined marginal rate = federal marginal + provincial marginal. A top-bracket Quebecer pays 53.31% on the next dollar.
What is CPP and how much is deducted from my paycheck?
Canada Pension Plan is mandatory retirement contribution. For 2026, you pay 5.95% on earnings between $3,500 (basic exemption) and $71,300 (YMPE). Max annual contribution: around $4,034. Additional CPP2 of 4% applies on earnings from $71,300 to ~$81,200. Quebec uses QPP with similar numbers.
What is EI and do I get it back?
Employment Insurance is unemployment protection. Rate is 1.64% on the first $65,700 of insurable earnings (1.31% in Quebec), max ~$1,077/year. You do not get it back directly — it funds EI benefits if you become unemployed.
How does RRSP reduce my tax?
RRSP contributions are deducted from taxable income in the year you contribute. At a 30% marginal rate, a $10,000 RRSP contribution gives you a $3,000 refund. Your contribution limit is 18% of last year income, up to $32,490 for 2026 (tax-year).
RRSP vs TFSA — which is better?
Contribute to whichever will be in a lower tax bracket when you withdraw. Typical answer: RRSP if you are in a high bracket now and will retire in a lower bracket; TFSA if the reverse. Early-career professionals in lower brackets should prioritize TFSA; high-earners should max both.
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