Income Tax Calculator (Canada, 2026)

Enter your yearly employment income and your province to estimate your 2026 federal and provincial income tax, CPP, EI and take-home pay. It runs in your browser and nothing is stored.

Employment income before tax

$/ year

Yearly examples:

RRSP and other yearly deductions (optional)

Province or territory where you lived on December 31

Dashed buttons are not available yet because their 2026 rules are still being confirmed.

Estimated take-home pay per year

$56,926

On $75,000 a year in Ontario, an estimated $18,074 a year (24.1%) goes to income tax, CPP and EI in 2026.

Take-home pay: $56,926
Federal income tax: $8,259
Provincial income tax: $4,446
CPP: $4,246
EI: $1,123
Gross income: $75,000

Average income tax rate: 16.9%; Income tax ÷ gross income
Marginal rate (next dollar): 29.6%; Tax on your next $1 of income
Taxable income: $74,273; After CPP and your deductions

What this estimate includes and leaves out

Federal and provincial or territorial income tax on employment income, using 2026 rates and brackets.
The federal and provincial basic personal amounts, the Canada employment amount, and credits for CPP and EI.
Employee CPP (including the enhanced and second CPP) and EI premiums for employees outside Quebec.
Ontario: the surtax, the health premium and the low-income tax reduction.
Hourly, weekly and monthly pay is turned into a yearly income (hours per week × 52 for hourly pay), and results assume you earn that all year.
Not included: other income, self-employment, tax credits for dependants, tuition, medical or donations, other deductions, benefits, and the Alberta, BC, Manitoba, Newfoundland and Labrador, PEI and Quebec rules.

Figures come from the Canada Revenue Agency's 2026 tax rates and payroll deductions tables, checked October 2026.

How Canadian income tax works

Canada taxes income in slices called brackets. Each slice is taxed at its own rate, and the rates go up as income rises. You pay federal tax to the Canada Revenue Agency and provincial or territorial tax on top (Quebec files a separate provincial return). Tax credits, such as the basic personal amount, then reduce the tax you owe. For example, on $70,000 of taxable income the federal tax before credits is $58,523 × 14% plus $11,477 × 20.5%, which is about $10,546.

2026 federal tax brackets

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%

Basic personal amounts used here (2026)

Everyone can claim a basic personal amount, which is income you do not pay tax on. The federal amount is $16,452 and shrinks to $14,829 for very high incomes. These are the provincial and territorial amounts this calculator uses.

Province or territory	Basic personal amount
New Brunswick	$13,664
Nova Scotia	$11,932
Northwest Territories	$18,198
Nunavut	$19,659
Ontario	$12,989
Saskatchewan	$20,381
Yukon	$16,452 (same as the federal amount)

CPP and EI

CPP: employees pay 5.95% on earnings between $3,500 and $74,600, up to $4,230.45 a year, plus 4% on earnings between $74,600 and $85,000 (up to $416).
EI: employees outside Quebec pay 1.63% on earnings up to $68,900, up to $1,123.07 a year.
Part of CPP and EI earns a tax credit, and the enhanced and second CPP are deducted from income, so they lower your income tax a little.

Marginal and average tax rates

Your average rate is your income tax divided by your income. Your marginal rate is the tax on your next dollar, which is what matters when you get a raise or make an RRSP contribution. Moving into a higher bracket never makes your take-home pay fall: only the extra income is taxed at the higher rate.

Take-home pay examples (Ontario, 2026)

These results come from this calculator for an employee in Ontario with employment income only and no other deductions. The marginal rate is the tax on your next dollar.

Yearly income	Income tax	CPP and EI	Take-home pay	Average rate	Marginal rate
$50,000	$6,273	$3,582	$40,145	12.5%	19.0%
$70,000	$11,134	$5,080	$53,786	15.9%	29.6%
$100,000	$20,024	$5,770	$74,206	20.0%	31.5%
$150,000	$39,911	$5,770	$104,320	26.6%	43.4%

How an RRSP contribution lowers your tax

An RRSP contribution is deducted from your income, so it saves tax at your marginal rate. In Ontario, a $10,000 contribution on a $100,000 income lowers the income tax from $20,024 to $17,034, a saving of about $2,991. At $60,000, a $5,000 contribution saves about $1,217. Enter the amount in the optional deductions box to see it for your own income.

What this calculator does not include

Self-employment, investment, rental or other income.
Credits for dependants, tuition, medical costs, donations, disability and more, and deductions other than the amount you enter.
Benefits such as the Canada Child Benefit and GST/HST credit.
Alberta, British Columbia, Manitoba, Newfoundland and Labrador, Prince Edward Island and Quebec, until their 2026 rules are confirmed.
Any change to rates or amounts announced after the figures were checked in October 2026.

Keeping the figures up to date

Rates, brackets and amounts are indexed to inflation each January, and provinces sometimes change them in budgets. This page uses figures from the Canada Revenue Agency checked in October 2026. For your actual tax, use your slips and the CRA's tools, or ask a qualified tax professional.

How to use the Income Tax Calculator (Canada) tool

Type your yearly employment income before tax.
Add any RRSP contributions or other deductions you want to include (optional).
Tap your province or territory.
Read your estimated take-home pay, the tax and payroll deductions, your average and marginal rates, and open the notes to see what is left out.

Frequently asked questions

How is income tax calculated in Canada?

Canada uses progressive tax. Your taxable income is split into slices (brackets), and each slice is taxed at its own rate, first federally and then provincially. Tax credits such as the basic personal amount then reduce the tax you owe.

What is the difference between a marginal and an average tax rate?

Your average rate is your total income tax divided by your income. Your marginal rate is the tax on your next dollar of income, which depends on the highest bracket you reach. A raise is only taxed at the marginal rate, not on all your income.

Does this calculator include CPP and EI?

Yes. It uses the 2026 employee CPP rates (including the enhanced and second CPP) and EI premiums for employees outside Quebec, and it applies the credits and deductions that go with them.

How much is $70,000 a year after tax in Ontario?

In 2026, a $70,000 employment income in Ontario gives about $11,134 in federal and provincial income tax and about $5,080 in CPP and EI, leaving take-home pay of about $53,786 a year, or about $4,482 a month. This is an estimate with no other credits or deductions.

How much tax does an RRSP contribution save?

It saves tax at your marginal rate. In Ontario, a $10,000 RRSP contribution on a $100,000 income lowers income tax by about $2,991. The tax is not gone for good: you pay it later when you withdraw the money, usually at a lower rate in retirement.

Does a raise push me into a bracket where I take home less?

No. Only the part of your income above a bracket limit is taxed at the higher rate, so a raise always increases your take-home pay. It just increases by less than the raise itself, by roughly your marginal rate.

Why are some provinces missing?

Alberta, British Columbia, Manitoba, Newfoundland and Labrador and Prince Edward Island have 2026 changes or extra rules that are still being confirmed, and Quebec has its own tax system. They are left out rather than risk showing a wrong number. Use the CRA's Payroll Deductions Online Calculator for those.

Will this match my pay stub or tax return?

It can be close, but not exact. Pay stubs include other deductions and benefits, and a tax return can include credits, deductions and other income that this simple estimate does not.

Last reviewed: October 22, 2026. Sources: CRA: Canadian income tax rates, CRA: Payroll deductions tables (T4032).