Canada Income Tax Calculator 2026
Estimate your 2026 take-home pay: federal and provincial tax, CPP (or QPP) and EI contributions, all in one place.
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Advanced optionsTax year, deductions and other settings (sensible defaults already applied)
Reduces your taxable income for the year.
Your take-home pay
Take-home: $4,744/month
$56,926/year · effective deduction rate 24.1%
Show calculationEvery step, the rule behind it and the official source
1. Taxable income
- Gross income$75,000
- Enhanced CPP contributions$727
The first-additional and CPP2 parts are deducted from income · CRA: T4127 (July 2026)
- Taxable income$74,273
2. Federal tax
- Tax on federal brackets$11,422
$0–$58,523 @ 14% $58,523 × 14% = $8,193 $58,523–$117,045 @ 20.5% $15,750 × 20.5% = $3,229 2026 federal rates (14% to 33%) · CRA: 2026 tax rates
- Non-refundable credits$3,163
14.000000000000002% × (basic personal amount $16,452 + Canada employment amount $1,501 + base CPP $3,519 + EI $1,123) · CRA: T4127 (July 2026)
- Federal tax before abatement$8,259
- Federal tax$8,259
3. Ontario tax
- Tax on Ontario brackets$4,586
$0–$53,891 @ 5.05% $53,891 × 5.05% = $2,721 $53,891–$107,785 @ 9.15% $20,382 × 9.15% = $1,865 2026 Ontario rates · CRA: 2026 tax rates
- Non-refundable credits$890
5.05% × $17,632 (basic personal amount, base CPP and EI) · CRA: T4127 (July 2026)
- Basic provincial tax$3,696
- Ontario Health Premium$750
Up to $900, based on taxable income · CRA: T4127 (July 2026)
- Ontario tax$4,446
4. CPP, EI
5. Take-home pay
- Gross income$75,000
- Federal tax$8,259
- Ontario tax$4,446
- Payroll contributions$5,370
- Take-home pay (year)$56,926
- Per month$4,744
Each line is rounded for display, so adding the rounded lines can differ from the total by 1.
What if…Move a slider to see how your tax changes
Full breakdownTables, chart and tax-saving tips
Income Tax
Ontario · after RRSP deduction & basic personal amounts.
Total Income Tax
$12,705
Payroll Contributions
CPP (incl. CPP2) and EI, on gross income.
Total Payroll Contributions
$5,369
| Period | Net Pay |
|---|---|
| Annual | $56,926 |
| Monthly | $4,744 |
| Bi-Weekly (26/yr) | $2,189 |
How Canadian Income Tax Works
Canadians pay income tax to two levels of government: the federal government and their province. For 2026, federal tax starts at 14% on the first $58,523 of taxable income and rises to 33% above $258,482, and each province layers its own brackets on top. Both levels give a Basic Personal Amount, a non-refundable credit rather than a deduction: $16,452 federally (gradually reduced to $14,829 for incomes between $181,440 and $258,482) and, for example, $12,989 in Ontario, $22,769 in Alberta and $11,932 in Nova Scotia. See the rates for your own province or territory.
CPP and EI are payroll contributions, not income tax. In 2026 the Canada Pension Plan charges 5.95% on earnings between $3,500 and $74,600, plus a CPP2 contribution of 4% on earnings up to $85,000. Employment Insurance charges 1.63% on earnings up to $68,900. The base part of CPP and your EI premiums earn tax credits, and the enhanced part of CPP is deducted from income, which this calculator applies.
Ontario and Quebec specifics: Ontario adds a surtax on higher provincial tax and the Ontario Health Premium (up to $900). Quebec residents contribute to QPP instead of CPP, pay a lower EI rate plus a QPIP premium, and get a 16.5% abatement on federal tax.
An RRSP contribution lowers your taxable income: estimate the refund with the RRSP tax refund calculator.
Estimates for the 2026 tax year using CRA and Revenu Québec rates. Covers all 10 provinces and 3 territories. Not modelled: provincial low-income tax reductions and other credits (e.g. the Ontario and BC tax reductions, Quebec's deduction for employment income), so Quebec and low-income results are approximate. Not tax advice.
FAQ
Frequently asked questions
How is income tax calculated in Canada?
You pay federal tax and provincial or territorial tax on the same taxable income, each with its own brackets and basic personal amount. This calculator adds both and subtracts CPP and EI to show your take-home pay.
What is the lowest federal tax rate?
For 2026 the lowest federal rate is 14% (it was cut from 15% on July 1, 2025) on the first $58,523 of taxable income. The top federal rate is 33% above $258,482.
How much are CPP and EI deductions?
For 2026, employees pay 5.95% CPP on earnings between $3,500 and $74,600, plus 4% CPP2 on earnings up to $85,000. EI premiums are 1.63% of insurable earnings up to $68,900. Quebec uses QPP (6.30%), a lower EI rate (1.30%) and a QPIP premium (0.43%).
What is the difference between marginal and average tax rate?
Your marginal rate is the tax on your next dollar of income; your average rate is total tax divided by total income. Only the income inside each bracket is taxed at that bracket's rate.
Does an RRSP contribution lower my tax?
Yes. RRSP contributions are deducted from your taxable income, saving tax at your marginal rate. Try the RRSP calculator to estimate your refund.
How much is $75,000 after tax in Ontario?
About $56,926 a year in 2026, or $4,744 a month: $8,259 federal tax, $4,446 Ontario tax, and the rest in CPP and EI contributions.
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