How your pay is taxed in Canada
Canadians pay income tax twice on the same income: once to the federal government and once to their province. Both use progressive brackets, and both give you non refundable credits, most importantly the basic personal amount, which works like a tax free allowance. On top of income tax, employees pay Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums.
Federal tax brackets 2026
From 2026 the lowest federal rate is 14 percent, down from 15 percent. The federal basic personal amount is $16,452, gradually reduced to $14,829 for incomes between $181,440 and $258,482.
| Taxable income | Federal 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% |
Provincial tax 2026: Ontario, BC and Alberta
| Province | Rates | Basic personal amount |
|---|---|---|
| Ontario | 5.05% to 13.16%, plus surtax and the Ontario Health Premium | $12,989 |
| British Columbia | 5.60% to 20.50% | $13,216 |
| Alberta | 8% to 15% | $22,769 |
Take home pay in Canada 2026 at common salaries
These figures come straight from the calculator above: a full year of employment income, paid every two weeks, with no RRSP contribution and only the standard credits. Use them to compare offers or provinces at a glance, then enter your exact salary for your own number.
| Salary | Ontario | British Columbia | Alberta |
|---|---|---|---|
| $40,000 | $32,814 $1,262 every two weeks | $33,333 $1,282 every two weeks | $33,332 $1,282 every two weeks |
| $50,000 | $40,145 $1,544 every two weeks | $40,574 $1,561 every two weeks | $40,541 $1,559 every two weeks |
| $60,000 | $47,340 $1,821 every two weeks | $47,755 $1,837 every two weeks | $47,691 $1,834 every two weeks |
| $75,000 | $56,926 $2,189 every two weeks | $57,711 $2,220 every two weeks | $57,362 $2,206 every two weeks |
| $100,000 | $74,206 $2,854 every two weeks | $75,373 $2,899 every two weeks | $74,459 $2,864 every two weeks |
| $150,000 | $104,320 $4,012 every two weeks | $107,377 $4,130 every two weeks | $107,458 $4,133 every two weeks |
Paid by the hour? Multiply your hourly rate by your weekly hours and by 52 to get the yearly figure. For example, $25 an hour for 40 hours a week is $52,000 a year, which you can enter above to see your take home pay per paycheque.
CPP, CPP2 and EI in 2026
| Contribution | Employee rate | Earnings range | Maximum |
|---|---|---|---|
| CPP | 5.95% | $3,500 to $74,600 | $4,230.45 |
| CPP2 | 4% | $74,600 to $85,000 | $416 |
| EI | 1.63% | Up to $68,900 | $1,123.07 |
How RRSP contributions cut your tax
RRSP contributions are deducted from your taxable income, so they save tax at your top combined rate. At $75,000 in Ontario, each $1,000 in an RRSP saves roughly $300 in tax. The enhanced part of CPP and all of CPP2 are deductible in the same way, while base CPP and EI earn tax credits.
Compare salaries abroad with our US paycheck, UK salary and Germany net salary calculators.
Sources: Canada Revenue Agency, indexation of tax brackets and amounts for 2026; CRA CPP and EI maximums for 2026; Ontario, British Columbia and Alberta provincial tax rates.
