Canada income tax calculator 2026: federal and provincial
Enter a yearly salary and a province or territory to see the federal and provincial income tax on it for 2026, bracket by bracket, with CPP and EI beside it.
Results
Take home pay
CA$ 47,339.75
You keep 78.90%.
- Income tax a year
- CA$ 8,320.50
- Marginal rate with contributions
- 35.68%
- -
- -
- Employer cost a year
- CA$ 64,730.95
Side by side
| Item | A year |
|---|---|
| Gross pay | CA$ 60,000.00 |
| Federal income tax | CA$ 8,380.18 |
| Federal tax credits | -CA$ 3,041.88 |
| Ontario income tax | CA$ 3,228.77 |
| Ontario tax credits | -CA$ 846.57 |
| Ontario Health Premium | CA$ 600.00 |
| CPP | CA$ 3,361.75 |
| EI | CA$ 978.00 |
| Total deductions | CA$ 12,660.25 |
| Take home pay | CA$ 47,339.75 |
| Item | A year |
|---|---|
| Employer CPP | CA$ 3,361.75 |
| Employer EI | CA$ 1,369.20 |
| Step | Amount |
|---|---|
| Pay | CA$ 60,000.00 |
| Less the additional CPP and CPP2 | CA$ 565.00 |
| Taxable income | CA$ 59,435.00 |
| Federal tax on the brackets | CA$ 8,380.18 |
| Less federal credits | CA$ 3,041.88 |
| Federal income tax | CA$ 5,338.30 |
| Ontario tax on the brackets | CA$ 3,228.77 |
| Less Ontario credits | CA$ 846.57 |
| Add the Ontario Health Premium | CA$ 600.00 |
| Ontario income tax | CA$ 2,982.20 |
A year, with the CRA payroll method.
What this does not include
- Gives the 2026 tax on a full year of employment income from one job, worked out with the CRA payroll formulas rather than a T1 return.
- Only the basic personal amount, the Canada employment amount and the credits for CPP, EI and QPIP are taken off; credits for dependents, tuition, medical costs, donations and the rest are left out.
- Ontario's LIFT credit is the one return credit included, on its own line, and both it and the Ontario tax reduction assume a single person with no dependents. The low income credits of other provinces and the Canada Workers Benefit are not included.
- For Quebec the page shows source deductions only: QPP, QPIP, EI at the Quebec rate, the federal abatement and Quebec tax from the Revenu Quebec formulas. Quebec return items, such as the health contribution and low income credits, are not part of it.
- In British Columbia, Newfoundland and Labrador and Prince Edward Island the annual 2026 figures apply, although payroll tables changed in July, so withholding in either half of the year can differ.
- The marginal rate counts CPP, CPP2, EI and QPIP as well as income tax, so below the contribution maximums it sits above the combined tax bracket.
- Union dues lower provincial taxable income only outside Quebec, because their Quebec treatment is not modeled.
- An RRSP or pension amount typed here is deducted in full; it is not checked against your own RRSP deduction room from your notice of assessment.
- Only employment income is counted: self employment income, investment income, pensions and other income are left out.
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For information only, not financial, tax or legal advice.
Last updated . Method checked . Rates checked 3 November 2026. Methodology
Income tax in Canada is charged twice on the same taxable income: once by the federal government and once by the province or territory you lived in on 31 December. Each applies its own brackets, then takes off non refundable credits at its lowest rate for the basic personal amount and for base CPP contributions and EI premiums. This calculator does both for tax year 2026 with the CRA payroll method, adds the Ontario surtax and health premium or the Quebec abatement where they apply, and lays the working out under How we calculate. A single employee in Ontario earning CA$ 60,000 pays CA$ 5,338.30 of federal tax and CA$ 2,982.20 of Ontario tax, CA$ 8,320.50 in all. Amounts are in Canadian dollars (CAD), and the figures you enter stay in this browser tab.
How to use the Canada Income Tax Calculator
- Type your employment income for 2026 before tax, or set Pay per to a month, two weeks or a week and enter one pay.
- Pick the province or territory where you lived on 31 December 2026. Tip: Provincial tax follows where you lived at the end of the year, and Quebec also changes the contributions.
- Open More options to add an RRSP contribution, a workplace pension contribution or union dues. Tip: Each one lowers taxable income, while CPP and EI stay on the full pay.
- Read the income tax for the year beside the take home pay, then open How we calculate for the federal and provincial brackets and each credit.
Worked example
A single employee in Ontario earns CA$ 60,000 of employment income in 2026, with no RRSP, pension plan or union dues. Amounts are in Canadian dollars (CAD).
| Input | Value |
|---|---|
| Employment income for the year | CA$ 60,000 |
| Province or territory | Ontario |
CPP = 5.95% x (60,000 - 3,500) = 3,361.75, of which 565 is the additional part; EI = 1.63% x 60,000 = 978 Taxable income = 60,000 - 565 = 59,435 Federal tax = 14% x 58,523 + 20.5% x 912 = 8,380.18, less 14% x (16,452 + 1,501 + 2,796.75 + 978) = 5,338.30 Ontario tax = 5.05% x 53,891 + 9.15% x 5,544 = 3,228.77, less 5.05% x (12,989 + 2,796.75 + 978) = 2,382.20, plus the health premium of 600 = 2,982.20 Total income tax = 5,338.30 + 2,982.20 = 8,320.50 Take home = 60,000 - 8,320.50 - 3,361.75 - 978 = 47,339.75
- Income tax a year
- CA$ 8,320.50
- Federal tax before credits
- CA$ 8,380.18
- Ontario tax before credits
- CA$ 3,228.77
- Ontario Health Premium
- CA$ 600.00
- Take home pay a year after CPP and EI
- CA$ 47,339.75
- Marginal rate with CPP and EI
- 35.68%
Brackets, credits and contribution rates from the 2026 rates files, checked on 3 November 2026 against the CRA payroll formulas (T4127), the Income Tax Act and the Ontario LIFT page.
How it is calculated
Taxable income = pay - RRSP and pension contributions - union dues - additional CPP - CPP2
Tax on the brackets = sum of each rate x the part of taxable income inside its bracket
Federal tax = federal bracket tax - 14% x (basic personal amount + Canada employment amount + base CPP + EI)
Provincial tax = provincial bracket tax - lowest provincial rate x (provincial basic personal amount + base CPP + EI), then surtax, reductions and premiums
Federal tax and provincial tax are two separate sums on the same taxable income. For 2026 the federal schedule has five rates, from 14% up to CA$ 58,523 to 33% above CA$ 258,482, and every province and territory has its own schedule with between three and eight rates. Each rate applies only to the slice of income inside its bracket, so moving into a higher bracket never raises the tax on the income below it.
Taxable income starts from pay and comes down by any RRSP, workplace pension or union dues, and by two parts of CPP: the additional 1% contribution and all of CPP2 are deducted from income. The base CPP contribution and EI premiums work the other way, as non refundable credits at the lowest rate, together with the basic personal amount and the federal Canada employment amount. A credit can bring tax down to nil but never below it.
Some provinces add their own steps after the credits. Ontario charges a surtax of 20% and 36% on basic Ontario tax over two thresholds, takes off the Ontario tax reduction for lower incomes, applies the LIFT credit when it is due and then adds the Ontario Health Premium, which depends on taxable income. British Columbia has its own tax reduction that fades out by CA$ 44,952, and Yukon credits the Canada employment amount as the federal return does.
Quebec is different. Federal tax is cut by the 16.5% abatement, and Quebec tax follows the Revenu Quebec payroll formulas: a deduction for workers of 6% of pay up to CA$ 1,450 and only the basic personal amount as a credit. QPP, QPIP and EI at the Quebec rate replace CPP and EI.
In the worked example CA$ 60,000 in Ontario gives taxable income of CA$ 59,435, federal tax of CA$ 5,338.30 and Ontario tax of CA$ 2,982.20 with the health premium. One more dollar of pay would cost 35.68 cents, counting CPP and EI as well as tax. The bracket tables under How we calculate show each federal and provincial rate with the income and the tax inside it.
Frequently asked questions
How much income tax is paid on 60,000 in Ontario in 2026?
After CA$ 565 of additional CPP comes off, taxable income is CA$ 59,435. Federal tax on the brackets is CA$ 8,380.18 less CA$ 3,041.88 of credits, which leaves CA$ 5,338.30. Ontario tax is CA$ 3,228.77 less CA$ 846.57 of credits plus the CA$ 600 health premium, or CA$ 2,982.20. The total is CA$ 8,320.50, and CPP and EI of CA$ 4,339.75 come on top.
What are the Canadian federal tax brackets for 2026?
The federal rates are 14% on taxable income up to CA$ 58,523, 20.5% up to CA$ 117,045, 26% up to CA$ 181,440, 29% up to CA$ 258,482 and 33% above. The basic personal amount of CA$ 16,452 is credited at 14% and falls to CA$ 14,829 between net income of CA$ 181,440 and CA$ 258,482.
Why is my marginal rate higher than my tax bracket?
The marginal rate here counts everything taken from the next 100 dollars of pay: federal and provincial income tax plus CPP, CPP2, EI and, in Quebec, QPIP. In Ontario at CA$ 60,000 that is 35.68%, of which 28.10 points are income tax, a little under the 20.5% federal and 9.15% Ontario rates because the extra CPP and EI earn credits and a deduction. Above the contribution maximums only income tax is left.
How does the Quebec abatement work?
A Quebec resident pays Quebec income tax to Revenu Quebec and federal tax to the CRA, and federal tax is cut by 16.5% of basic federal tax. At CA$ 60,000 basic federal tax after credits is CA$ 5,302.21, the abatement takes off CA$ 874.86 and CA$ 4,427.35 is left. Quebec tax itself comes from the Revenu Quebec payroll formulas, without the items of the Quebec return.
What is the Ontario LIFT credit?
The Low-income Individuals and Families Tax credit cuts Ontario tax by up to CA$ 875, or 5.05% of employment income if that is less, reduced by 5% of net income over CA$ 32,500. It is claimed on the return, not through payroll, so the calculator shows it on its own line. At CA$ 30,000 it clears the CA$ 754.74 of basic Ontario tax, and only the CA$ 300 health premium is left.
Guides for this tool
Income tax calculator by province or territory
Sources
- CRA, Payroll Deductions Formulas (T4127), 122nd Edition, effective 1 January 2026: federal and provincial brackets and credits, CPP, CPP2 and EI (read from an Internet Archive capture of the official page) checked 3 November 2026
- CRA, Payroll Deductions Formulas (T4127), 123rd Edition, effective 1 July 2026: the British Columbia, Newfoundland and Labrador and Prince Edward Island changes (read from an Internet Archive capture of the official page) checked 3 November 2026
- CRA, Current year tax rates and income brackets for 2026 (read from an Internet Archive capture of the official page) checked 3 November 2026
- CRA, Indexation adjustment for personal income tax and benefit amounts: the 2026 basic personal amount and Canada employment amount checked 3 November 2026
- Income Tax Act, section 117: federal rates for taxation years after 2024 checked 3 November 2026
- Income Tax Act, section 118.7: the credit for EI premiums, QPIP premiums and base CPP contributions checked 3 November 2026
- Income Tax Act, section 60, paragraph (e.1): the deduction for enhanced CPP and QPP contributions checked 3 November 2026
- Government of Ontario, Low-income Individuals and Families Tax (LIFT) Credit checked 3 November 2026
- Revenu Quebec, TP-1015.F-V (2026-01), Formulas for Calculating Quebec Source Deductions and Employer Contributions (read from an Internet Archive capture of the official file) checked 3 November 2026