About this calculator
Federal tax starts with brackets — 14.5% (2025, blended after the mid-year cut from 15%), then 20.5%, 26%, 29% and 33% — but the bill is cut by non-refundable credits at the lowest rate: the basic personal amount ($16,129 in 2025), the Canada employment amount ($1,471), your base CPP contributions and your EI premiums. Two pieces of CPP behave differently: the enhanced 1% additional CPP and the 4% CPP2 come off your income before tax instead of as credits. CPP and EI themselves are capped, so above about $81,200 of salary they stop growing.
Then your province taxes the same income again, each with its own brackets and its own basic personal amount (credited at the province’s lowest rate): Ontario adds a surtax (20% of provincial tax over $5,710, plus 36% over $7,307) and a health premium ($0–$900 on a stepped schedule); Manitoba phases its basic amount out between $200,000 and $400,000; Yukon phases out only an additional amount; the Northwest Territories adds a 2% payroll tax. Quebec is a different system inside the system: the 16.5% federal abatement on net federal tax, QPP instead of CPP, QPIP on top of reduced-rate EI. This calculator models the basic personal amount for each province and flags the provincial credits it does not model (Ontario LIFT, BC low-income reduction and the like), so low-income provincial figures are upper bounds.
How to use it
- Pick the tax year and your province or territory (or “Federal only” for the federal half alone).
- Enter your monthly salary — annual salary is monthly × 12.
- Read the federal tax, provincial tax, CPP/QPP, EI, QPIP and take-home lines; the table shows the federal brackets your income passes through.
The formula
Worked example for 2025, Ontario, $100,000 salary ($8,333.33 a month): CPP is $4,034.10 (base $3,356.10 + additional $678.00) plus CPP2 $396.00 = $4,430.10; EI is $65,700 × 1.64% = $1,077.48. Enhanced CPP of $1,074.00 reduces net income to $98,926. Federal tax before credits: 14.5% × $57,375 + 20.5% × $41,551 = $16,837.33. Federal credits: ($16,129 + $1,471 + $3,356.10 + $1,077.48) × 14.5% = $3,194.87. Federal tax $13,642.46. Ontario tax: 5.05% × $52,886 + 9.15% × $46,040 = $6,883.40, minus the BPA credit $643.72 = $6,239.68, plus surtax 20% × ($6,239.68 − $5,710) = $105.94, plus the $750 health premium = $7,095.62. Total deductions $26,245.66; take-home $73,754.34, about $6,146.20 a month.
Worked example
An Ontario salary of $8,333.33 a month ($100,000 a year) in 2025: federal tax $13,642.46, Ontario tax $7,095.62 (including $105.94 surtax and the $750 health premium), CPP $4,430.10, EI $1,077.48 — total deductions $26,245.66 (26.25% of salary), take-home $73,754.34 a year, about $6,146.20 a month. The same salary in Quebec pays $11,380.77 federal tax after the 16.5% abatement (federal credits use base QPP at 5.40% and Quebec EI at 1.31%), $13,533.25 Quebec tax, $4,735.20 QPP, $484.12 QPIP and $860.67 EI — take-home $69,005.99.
Sources: CRA — indexation of personal amounts (2025 & 2026), T4032 payroll tables (July 2025, January 2026), line 31260 Canada employment amount; Revenu Québec — QPP, QPIP and EI rates and Quebec brackets; provincial finance ministries and TaxTips.ca provincial tables (2025 and, where announced, 2026). 2026 CPP/EI per payroll-industry tables, flagged pending CRA T4032; 2026 Quebec indexation and Manitoba/Saskatchewan 2026 figures are secondary-source only. Verified October 2026. Last updated: October 2026.
Frequently asked questions
Why is the 2025 lowest rate 14.5% and not 15%?
Bill C-4, the middle-class tax cut passed in May 2025, lowered the lowest federal rate from 15% to 14% effective 1 July 2025. For the full 2025 year the CRA blends the two halves into 14.5%; from 2026 the lowest rate is a clean 14%. The credit rate follows the lowest bracket rate, so non-refundable credits are also worth 14.5% in 2025 and 14% in 2026.
What is the basic personal amount phase-out?
The BPA is $16,129 in 2025 if your net income is $177,882 or less, falling linearly to $14,538 once net income reaches $253,414 (the 29%-bracket top). Between those points you lose about 2.11¢ of BPA per extra $1 of income. The 2026 figures are $16,452 falling to $14,829 between $181,440 and $258,482. Most employees are below the phase-out zone and get the full amount.
Why is part of CPP a deduction and part a credit?
The original CPP (4.95% base rate) is treated like other non-refundable credits: it reduces your tax at the lowest rate. The enhancement (the extra 1% on base earnings plus the 4% CPP2 on earnings between the two ceilings) is a deduction from income instead, which saves tax at your marginal rate — worth more for higher earners. This calculator applies each piece in its correct place, which is why the worked example’s numbers differ from a naive “CPP × 5.95%” approach.
How much does provincial tax add?
Roughly half as much as federal tax again, sometimes more: Ontario’s 2025 brackets run 5.05% to 13.16% with its own basic amount, surtax and health premium, so a $100,000 Ontario salary pays $7,095.62 in provincial tax on top of the $13,642.46 federal figure. Alberta is cheapest at the bottom (8% from 2025, with the highest basic amount in Canada at $22,323), BC and Quebec are more expensive — Quebec’s 2025 top combined marginal rate is 53.31% including the abated federal tax.
How does Quebec work — why are the payroll lines different?
Quebec residents file two returns. Federally, 16.5% of net federal tax (after credits) is abated — Quebec funds its own programs instead. Provincially, Quebec’s brackets run 14% to 25.75% with its own $18,571 basic amount. For payroll, QPP replaces CPP (2025: 6.40% to $71,300 plus 4% QPP2 to $81,200, for a $4,735.20 maximum), QPIP adds 0.494% to $98,000 ($484.12 maximum) on top of EI, and EI itself is charged at Quebec’s reduced rate (1.31% to $65,700, $860.67 maximum) because QPIP covers parental benefits. Never charge CPP and QPP together. The Quebec Health Services Fund is an employer levy and is not in the employee figures.
Which provincial credits are not modelled?
Only the basic personal amount is modelled for each province. That means low-income provincial figures are upper bounds: Ontario’s Low-Income Individuals and Families Tax Credit (LIFT, clawed back above $32,500 of net income in 2025), BC’s low-income tax reduction credit ($562, phasing out between $25,020 and $40,807), the low-income reductions in New Brunswick, Newfoundland and Labrador and PEI, and age, pension, disability and other non-refundable credits are all omitted. If your income is under about $40,000, your actual provincial tax will be lower than shown — sometimes zero.
What about the Northwest Territories payroll tax?
The Northwest Territories levies a 2% payroll tax on all earnings, collected by the employer — it is not income tax, but it reduces take-home pay, so this calculator includes it as its own line for NT residents. Its cap and exemptions were not verified at publication, so the line is 2% of the full salary with that caveat; if a cap applies to you, your actual payroll tax will be lower.
Are the 2026 CPP and EI figures confirmed?
Not yet from the CRA: the 2026 brackets, BPA and employment amount are confirmed from CRA indexation and T4032 pages, but the 2026 CPP ceilings ($74,600 / $85,000) and EI maximum insurable earnings ($68,900 at 1.63%) come from mutually consistent payroll-industry tables and are flagged here pending the CRA’s 2026 T4032 guide. The 2025 computation is fully CRA-verified.
What formula does this Canada Income Tax calculator use?
Annual salary = Monthly salary × 12; Net income = Salary − enhanced CPP/QPP (additional + CPP2/QPP2); Federal tax = bracket rates on taxable income − (BPA + employment amount + base CPP/QPP + EI) × lowest rate (Quebec: × 0.835 abatement); Provincial tax = province bracket rates − provincial BPA × lowest provincial rate (+ Ontario surtax and health premium, + NT payroll tax) Worked example for 2025, Ontario, $100,000 salary ($8,333.33 a month): CPP is $4,034.10 (base $3,356.10 + additional $678.00) plus CPP2 $396.00 = $4,430.10; EI is $65,700 × 1.64% = $1,077.48. Enhanced CPP of $1,074.00 reduces net income to $98,926. Federal tax before credits: 14.5% × $57,375 + 20.5% × $41,551 = $16,837.33. Federal credits: ($16,129 + $1,471 + $3,356.10 + $1,077.48) × 14.5% = $3,194.87. Federal tax $13,642.46. Ontario tax: 5.05% × $52,886 + 9.15% × $46,040 = $6,883.40, minus the BPA credit $643.72 = $6,239.68, plus surtax 20% × ($6,239.68 − $5,710) = $105.94, plus the $750 health premium = $7,095.62. Total deductions $26,245.66; take-home $73,754.34, about $6,146.20 a month. The worked example on this page applies the formula step by step with real numbers, so you can verify the result by hand.