Federal income tax
Canada taxes income in brackets. That means you pay a higher rate only on the slice of income that falls inside each bracket, not on your whole salary. For 2026, the federal brackets are 14% on the first $58,523 of taxable income, 20.5% up to $117,045, 26% up to $181,440, 29% up to $258,482, and 33% on anything above that. Everyone also gets a basic personal amount, which is a slice of income taxed at zero.
Provincial and territorial income tax
Your province or territory runs its own set of brackets the same way, with its own rates and its own basic personal amount. Ontario adds a surtax on higher provincial tax amounts, plus the Ontario Health Premium. Quebec is the outlier: it collects its own income tax separately, and Quebec residents get a federal tax abatement that lowers the federal portion.
CPP and QPP contributions
The Canada Pension Plan, or the Quebec Pension Plan if you work in Quebec, is funded by contributions from you and your employer. In 2026, you contribute 5.95% of earnings between $3,500 and $74,600 (6.3% for QPP), plus a second tier of 4% on earnings from $74,600 to $85,000. Once your contributions hit the yearly maximum, about $4,646 for CPP in 2026, nothing more comes off for the rest of the year. That is why late-year paycheques can look slightly bigger.
EI premiums
Employment Insurance premiums are 1.63% of your insurable earnings up to $68,900 in 2026, or 1.3% in Quebec, for a yearly maximum of about $1,123. Like CPP, EI stops coming off once you reach the yearly maximum.
Pre-tax deductions
Some deductions come off before income tax is calculated, which lowers the income your tax is based on. Common ones include RRSP contributions, employer pension or RPP contributions, and union dues. These do not reduce CPP, QPP, or EI, which are calculated on your full earnings.
Why paycheques vary through the year
Even with a steady salary, your take-home pay can shift from one paycheque to the next. Bonuses and taxable benefits add to your taxable income, mid-year raises change your bracket math, and hitting the CPP or EI yearly maximums means those deductions disappear for the rest of the year. The calculator estimates based on a steady annual salary, so treat the result as a planning figure.
Try the calculator
Enter your salary, province, and pay frequency on the take-home pay calculator to see your own estimate.