How We Calculate 2026 Canadian Income Tax
Rules version 2026.3 · 2026 tax year · Bracket tables checked against the CRA on October 22, 2026
What the calculator estimates
Your yearly 2026 federal and provincial or territorial income tax, your employee CPP/QPP, EI and QPIP contributions, and the take-home pay left after them. The free calculator covers salary from employment; Pro adds other income types and deductions.
It is not:
- A paycheque calculator. Employers withhold tax with the CRA's per-pay-period payroll formulas. Monthly and biweekly figures here are the yearly estimate ÷ 12 and ÷ 26.
- A refund estimate. A refund or balance owing also depends on tax already withheld or paid by instalments, and on credits we don't ask about.
- Tax-filing software or advice. It has not been reviewed or approved by the CRA, Revenu Québec or a tax professional.
Everything is calculated in your browser. The amounts you enter are not sent to us and are not recorded in analytics.
How the estimate is built, step by step
- Contributions. CPP (QPP in Quebec) on earnings above the $3,500 exemption up to $74,600, plus CPP2 on earnings from $74,600 to $85,000. EI (and QPIP in Quebec) on insurable earnings up to the yearly maximum.
- Taxable income. All income, less the enhanced part of CPP/QPP (which is deductible) and, in Pro, RRSP, FHSA and other deductions you enter.
- Federal tax. The federal brackets, minus non-refundable credits at 14%: the basic personal amount (which shrinks between $181,440 and $258,482), the Canada employment amount, the base part of CPP/QPP, EI/QPIP, the pension income amount and dividend tax credits. Quebec residents then get the 16.5% Quebec abatement.
- Provincial or territorial tax. That province's brackets, minus its basic personal amount and CPP/EI credits at its lowest rate (Quebec gives no provincial credit for QPP, EI or QPIP). Ontario then adds its surtax, subtracts the Ontario tax reduction and adds the Health Premium.
- Take-home pay. Gross income minus income tax and employee contributions. RRSP and FHSA contributions are savings, so they lower your tax but are not subtracted from take-home pay.
Worked example: $100,000 salary in Ontario
Every line comes from the same engine as the calculator. You can reproduce it with a spreadsheet.
| Gross salary | $100,000.00 |
| CPP: ($74,600 − $3,500) × 5.95% | $4,230.45 |
| CPP2: ($85,000 − $74,600) × 4% | $416.00 |
| EI: $68,900 × 1.63% | $1,123.07 |
| Deduction for enhanced CPP (the 1% part plus CPP2) | − $1,127.00 |
| Taxable income | $98,873.00 |
| Federal tax from the brackets | $16,464.97 |
| Federal credits: ($16,452 basic + $1,501 Canada employment + $3,519.45 base CPP + $1,123.07 EI) × 14% | − $3,163.37 |
| Federal income tax | $13,301.60 |
| Ontario tax from the brackets | $6,837.35 |
| Ontario credits: ($12,989 basic + $3,519.45 base CPP + $1,123.07 EI) × 5.05% | − $890.39 |
| Ontario basic tax | $5,946.96 |
| Ontario surtax: 20% of basic tax over $5,818 (36% over $7,446) | + $25.79 |
| Ontario tax reduction (only for lower incomes) | − $0.00 |
| Ontario Health Premium | + $750.00 |
| Ontario income tax | $6,722.75 |
| Take-home pay: gross − federal − Ontario − CPP − EI | $74,206.13 |
2026 contribution rates and amounts used
| Item | Rate | Earnings range | Yearly maximum |
|---|---|---|---|
| CPP (outside Quebec) | 5.95% | $3,500 to $74,600 | $4,230.45 |
| CPP2 / QPP2 | 4% | $74,600 to $85,000 | $416.00 |
| QPP (Quebec) | 6.3% | $3,500 to $74,600 | $4,479.30 |
| EI (outside Quebec) | 1.63% | Up to $68,900 | $1,123.07 |
| EI (Quebec) | 1.3% | Up to $68,900 | $895.70 |
| QPIP (employee) | 0.43% | Up to $103,000 | $442.90 |
Federal basic personal amount $16,452 (down to $14,829 at high incomes); Canada employment amount $1,501. Every province page lists its own brackets and basic personal amount.
Other income and deductions (Pro)
- Bonus, commission and taxable benefits are employment income: CPP/QPP, EI and income tax all apply.
- Interest, rental income and pension income are fully taxable; pension income gets a credit on up to $2,000.
- Eligible dividends are grossed up by 38% and non-eligible dividends by 15%, then receive federal and provincial dividend tax credits.
- Half of a capital gain is taxable.
- Self-employment income pays both the employee and employer share of CPP/QPP and no EI.
- RRSP, FHSA and other deductions reduce taxable income by the amount entered. The calculator doesn't check your RRSP room or FHSA limits, so check your notice of assessment or CRA My Account.
What isn't included
- Refundable credits and benefits, such as the GST/HST credit, Canada Workers Benefit and child benefits.
- Provincial low-income tax reductions outside Ontario.
- Credits for medical expenses, donations, tuition, childcare, disability, age, spouse or dependants.
- Union dues, workplace pension plans and other payroll deductions.
- Alternative minimum tax, foreign income and part-year residence.
Why other calculators can give a different number
- They may include credits, levies or reductions we leave out, or the other way round.
- Payroll calculators show what's withheld per pay period, which isn't the same as the yearly tax owed.
- When a province changes a rate partway through a year, payroll tables use a temporary rate for the rest of the year. We use the annual value that applies on your tax return. For example, Newfoundland and Labrador's 2026 basic personal amount is $13,094 on the return, while payroll uses $15,000 from July 1.
- Rounding and the year the rules come from. Check which tax year a calculator uses before comparing.
Release checks
Before each release we run these cases with npm test. Expected values are worked out by hand from the published rates, not copied from the calculator. Results below are computed live: 14 of 14 pass.
| Check | Province | Salary | Expected | Calculator | Result |
|---|---|---|---|---|---|
| No income means no tax or contributionsNothing to tax in any of the 13 provinces and territories. | All | $0 | $0.00 | $0.00 | Pass |
| Low income is covered by the basic creditsFederal and Ontario credits plus the Ontario tax reduction exceed the bracket tax, so income tax is $0. | ON | $15,000 | $0.00 | $0.00 | Pass |
| CPP stops at the 2026 maximum($74,600 − $3,500) × 5.95% = $4,230.45, plus CPP2 ($85,000 − $74,600) × 4% = $416.00. | ON | $150,000 | $4,646.45 | $4,646.45 | Pass |
| EI stops at the 2026 maximum$68,900 × 1.63% = $1,123.07. | ON | $150,000 | $1,123.07 | $1,123.07 | Pass |
| Quebec: QPP, lower EI and QPIP at their maximumsQPP ($74,600 − $3,500) × 6.3% + $416.00 = $4,895.30; EI $68,900 × 1.30% = $895.70; QPIP $103,000 × 0.43% = $442.90. | QC | $150,000 | $6,233.90 | $6,233.90 | Pass |
| Ontario Health Premium in the $72,000–$200,000 bandThe premium is $750 for taxable income from $72,600 to $200,000. | ON | $100,000 | $750.00 | $750.00 | Pass |
| Ontario Health Premium at its $900 maximumThe premium is $900 for taxable income above $200,600. | ON | $250,000 | $900.00 | $900.00 | Pass |
| Marginal rate once CPP and EI are maxed (Ontario)Federal 20.5% + Ontario 9.15% = 29.65%; no surtax yet and the Health Premium is flat at this income. | ON | $90,000 | 29.65% | 29.65% | Pass |
| Marginal rate with the Quebec abatementFederal 20.5% × (1 − 16.5%) = 17.1175%, plus Quebec 24% = 41.1175%. | QC | $110,000 | 41.12% | 41.12% | Pass |
| Federal basic personal amount phase-out (Alberta)Federal 29% + Alberta 13% + lost credit (16,452 − 14,829) ÷ (258,482 − 181,440) × 14% = 42.295%. | AB | $200,000 | 42.29% | 42.29% | Pass |
| Newfoundland and Labrador basic personal amount (annual 2026)CPP $2,766.75 (base part $2,301.75, $465.00 deductible), EI $815.00, taxable $49,535. Brackets: $44,678 × 8.7% + $4,857 × 14.5% = $4,591.25, minus ($13,094 + $2,301.75 + $815.00) × 8.7% = $1,410.34, so NL tax is $3,180.92. | NL | $50,000 | $3,180.92 | $3,180.92 | Pass |
| Take-home = gross − income tax − contributionsLargest gap between the two sides across all provinces and the published example salaries. | All | $40,000 to $200,000 | $0.00 | $0.00 | Pass |
| A raise never lowers take-home payNumber of $1,000 steps, in any province, where take-home pay goes down. Should be none. | All | $0 to $400,000 | 0 | 0 | Pass |
| Reference example (pinned)Take-home recorded at launch: federal $13,302, Ontario $6,723 incl. $750 Health Premium, CPP $4,646, EI $1,123. | ON | $100,000 | $74,206.00 | $74,206.13 | Pass |
Sources
- Canada Revenue Agency — 2026 federal and provincial/territorial tax rates
- Canada Revenue Agency — Payroll deductions formulas (T4127)
- Government of Canada — Contributions to the Canada Pension Plan
- Employment and Social Development Canada — 2026 EI maximum insurable earnings
- Revenu Québec — Income tax rates
- Revenu Québec — QPIP maximum insurable earnings and premium rate
Rates and thresholds are facts published by these agencies, compiled by us. We are not affiliated with or endorsed by the Government of Canada, the CRA or Revenu Québec.
Change log
- October 22, 2026 · version 2026.3Corrected Newfoundland and Labrador's 2026 basic personal amount from $14,047 to $13,094, the annual amount on the tax return. The earlier value averaged it with the $15,000 payroll amount used from July. This raises estimated Newfoundland and Labrador tax by up to about $83 a year. Credit calculations now show rates at full precision.
- October 22, 2026 · version 2026.2Published the methodology page and automated regression checks. Federal and provincial/territorial bracket tables re-checked against the CRA 2026 rates page; no calculation changes.
- October 18, 2026 · version 2026.1Website launched with 2026 rules from the CRA, Revenu Québec and the T4127 payroll formulas (122nd/123rd editions).
Who maintains this, and corrections
The calculator is built and maintained by ChowChow Labs, an independent studio in Toronto, Canada. We update the rules when the CRA or Revenu Québec publish new rates, mainly each January and sometimes partway through the year.
Found a number that looks wrong? Email chowchowbuy@gmail.com with the province and amounts. We check every report and note corrections in the change log above.
Guides that use this calculator
- Take-home pay in every province and territory in 2026: five salaries compared, with marginal rates.
- RRSP vs TFSA vs FHSA: which to fill first: what a deduction saves at three incomes.
- How Canadian tax brackets work: marginal and average rates, with a worked example.
More free tools
- Hourly wage to salaryTurn an hourly wage into yearly pay and take-home.
- Compare provincesTake-home pay in all 13 provinces and territories.