Your net pay by province or territory after federal and provincial income tax, CPP (including CPP2), and EI — or QPP, QPIP and the federal abatement in Quebec, or the 2% payroll tax in the Northwest Territories and Nunavut — computed with CRA's own T4127 payroll formulas applied to the whole year (and Revenu Québec's for Quebec), with an optional RRSP contribution.
Quick answer
Take-home pay in Canada in 2026 is gross pay minus federal tax, provincial tax, CPP (QPP in Quebec) and EI (plus QPIP in Quebec, and a 2% payroll tax in the Northwest Territories and Nunavut), worked out with CRA's T4127 payroll formulas applied to a whole year (and Revenu Québec's for Quebec). In the calculator's example, a $60,000 salary in Ontario with no RRSP contribution nets $47,339.75 a year, or about $3,945 a month.
How CRA actually calculates this
Every dollar taken off a Canadian paycheque falls into one of four buckets (five in the Northwest Territories and Nunavut, where the fifth is a payroll tax, covered below): federal income tax, provincial or territorial income tax, CPP or QPP (the pension plan), and EI (employment insurance, plus QPIP in Quebec). CRA's own payroll formulas — published twice a year, in January and July, in a document called T4127 — compute each of the first two the same basic way: multiply your taxable income by the applicable bracket rate, then subtract a set of non-refundable credits, each converted into an actual dollar credit by multiplying it by that jurisdiction's lowest tax rate. This calculator applies the formulas of T4127's Option 1 to your whole year's income and deductions as if it were a single pay period, rather than to one pay period at a time the way real payroll software does (more on that gap below).
Taxable income = gross pay − RRSP contribution − enhanced CPP/QPP deduction (the extra 1% layer, plus all of CPP2/QPP2)
Tax = (taxable income × bracket rate − bracket adjustment) − lowest-rate × (basic personal amount + CPP/QPP credit + EI/QPIP premiums + employment amount)
Three credits do the heavy lifting here. The basic personal amount (BPA) is the income everyone gets tax-free — $16,452 federally for 2026, and a different amount set by each province (Alberta's $22,769 is the highest; Nova Scotia's $11,932 the lowest). The federal BPA also quietly shrinks for high earners: it phases down from $16,452 to a $14,829 floor between $181,440 and $258,482 of net income — Yukon's BPA mirrors that federal amount and its phase-out exactly, and Manitoba's $15,780 phases out to nothing between $200,000 and $400,000. The Canada Employment Amount is $1,501 for 2026, available to anyone with employment income to offset work-related costs; like the other federal amounts it is credited at the lowest federal rate, so it is worth 14% of $1,501, or $210.14. And the CPP/QPP and EI/QPIP credit exists because those aren't really taxes — they're contributions to plans you'll eventually draw from — so only the "base" portion of what you pay is credited back at the lowest rate; the enhanced layers (explained below) are instead deducted straight from your taxable income before tax is even calculated.
If you would rather compare salaries than run them one at a time, the take-home pay tables show net pay at 33 salaries from $30,000 to $300,000 for Ontario, British Columbia, Alberta, Quebec, Manitoba, Saskatchewan, Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island, Northwest Territories, Nunavut and Yukon, all worked out by this same engine.
CPP, CPP2, and the two-ceiling system
CPP contributions in 2026 work in two tiers. The base tier runs from a $3,500 exemption up to the Year's Maximum Pensionable Earnings (YMPE) of $74,600, at a combined employee rate of 5.95% — split, for tax purposes, into a 4.95% portion that earns you a tax credit and a 1.00% "first additional" portion that's instead deducted from your taxable income. The maximum total contribution in this tier is $71,100 × 5.95% = $4,230.45: a maximum base contribution of $3,519.45 (4.95%) plus a maximum first additional contribution of $711.00 (1.00%), the names T4127's tables give them. CPP2, added in 2024, is a second, separate 4% contribution that kicks in only on earnings between the YMPE ($74,600) and a second ceiling, the Year's Additional Maximum Pensionable Earnings (YAMPE) of $85,000 — a $10,400-wide band, capping CPP2 at $416.00. Unlike the base tier's split, the entire CPP2 amount is a deduction from taxable income, with no credit component at all. Someone earning $85,000 or more pays the full $4,230.45 + $416.00 = $4,646.45 in CPP for the year; someone earning under $74,600 never touches CPP2 at all. Quebec runs the parallel QPP and QPP2 instead, at slightly different base rates (5.30% base + 1.00% first-additional = 6.30% combined, capped at $4,479.30, plus the same 4%/$416.00 QPP2), on the identical $74,600/$85,000 ceilings.
EI, and Quebec's QPIP difference
EI premiums for 2026 are 1.63% of insurable earnings up to a Maximum Insurable Earnings (MIE) of $68,900, capping the annual premium at $1,123.07. Quebec workers pay a reduced EI rate of 1.30% (capped at $895.70) because Quebec runs its own parental-leave program, the Quebec Parental Insurance Plan (QPIP), which covers benefits EI provides everywhere else in Canada. QPIP is a separate premium — 0.430% of earnings up to a $103,000 insurable maximum, capping at $442.90 — paid on top of the reduced EI rate. EI and QPIP premiums are fully creditable against federal tax at 14% (and EI against provincial tax outside Quebec, at that province's lowest rate), unlike the enhanced CPP/QPP layers; Quebec's own formula credits neither — see below.
Ontario's surtax and Health Premium
Ontario adds two extra steps most provinces don't have. The surtax applies on top of Ontario tax itself (after its own BPA and CPP/EI credits, before the Health Premium): 20% of any Ontario tax over $5,818, plus a further 36% (56% total, once both tiers apply) of any Ontario tax over $7,446 — a real jump in your effective marginal rate for anyone whose Ontario tax crosses those thresholds. The Ontario Health Premium is entirely separate: a graduated premium based directly on taxable income, phasing up through $300, $450, $600, $750 and a final $900 cap as income rises from $20,000 to $200,600, with short "phase-in" ranges between each flat step. It applies to every dollar of taxable income above $20,000 and is not itself subject to the surtax or any credit.
Low-income reductions: British Columbia and Ontario
BC offers a separate non-refundable credit worth up to $690 (2026) for taxpayers with net income at or below $25,570, phasing out at 3.56% of income above that threshold until it disappears entirely around $44,950. It's applied as a straight subtraction from BC tax after the usual BPA and CPP/EI credits — a meaningful bump to take-home pay for lower earners in BC specifically. Ontario has a smaller cousin, the Ontario tax reduction: it cancels Ontario tax (plus surtax) entirely up to $300. Above that the reduction shrinks by a dollar for every further dollar of tax, so the tax you owe rises two dollars for each extra dollar of tax before the reduction, until that tax reaches $600 and the reduction is gone. For an employee with no dependants that happens at a salary of about $26,700, so it only matters below that. It grows with dependants, which this calculator does not model, and it never touches the Health Premium.
Quebec: a different formula, not a different shape
Quebec collects its own tax with its own formula, published by Revenu Québec as TP-1015.F-V. The shape is familiar — bracket rate × taxable income, less the $18,952 basic personal amount at 14% — but what comes off income first is different: RRSP contributions, the enhanced QPP layer (the 1% first-additional portion plus all of QPP2, exactly as on the federal side), and a deduction for workers worth 6% of gross pay up to $1,450. There is no separate Quebec credit for base QPP, EI or QPIP premiums: Revenu Québec's income tax guide says the basic personal amount already takes those contributions into account, and the deduction for workers is separate relief on work income. Federally, Quebec residents then get a 16.5% abatement of their federal tax. Finance Canada explains it as 13.5 percentage points from the 1960s opting-out arrangements for certain federal-provincial programs, which only Quebec took up (Ottawa lowered its income tax by that amount and Quebec raised its own by the same), plus 3 points for the discontinued federal youth allowances program.
Northwest Territories and Nunavut: a payroll tax on top
Both territories charge their employees a payroll tax, and it comes off pay on top of everything above. Under each territory's Payroll Tax Act (section 3(1)), the employee owes 2% of the remuneration paid in the year, and the employer must deduct it from pay and remit it (sections 5(1) and 6(1)(b)). Remuneration (section 1(1)) is everything the federal Income Tax Act includes in employment income: salary, wages, bonuses, commissions and taxable allowances and benefits. So the base is gross pay, and nothing reduces it: not an RRSP contribution, union dues, CPP or EI, and there is no ceiling. The calculator shows it as its own line, Payroll tax, and leaves it out of the average and marginal tax rates, because it is not income tax: it is not on your T4 slip, and the Government of the Northwest Territories says it cannot be deducted from personal income tax.
The tax follows the work, not the home address. A resident of another province who normally works in a territory pays it on that pay. The only exemption is for someone who normally works outside the territory: they pay on the days worked inside it, and nothing at all when that pay from one employer is $5,000 or less in the year. This calculator assumes the territory you pick is where the pay is earned and does not model that exemption. Residents of the territory can claim a refundable cost of living tax credit when they file their return: up to $942 in the Northwest Territories, and up to $1,500 in Nunavut plus a supplement for single parents. The calculator does not include that credit, so for a resident the net pay shown is before the credit.
Yukon, the Northwest Territories and Nunavut: the northern residents deduction
Every place in Yukon, the Northwest Territories and Nunavut is in a prescribed northern zone, and a person who has lived in one on a permanent basis for a continuous period of at least six consecutive months, a period that can begin or end in the tax year, can claim the northern residents deduction (line 25500 of the return). Its residency part is $11 for each day lived there, plus another $11 for each day the person maintained and lived in a dwelling there and is the only person claiming the basic amount for that dwelling; CRA counts a dwelling as maintained even when an employer provides it rent-free. The travel deduction is the other part.
When you choose one of the three territories, a box under the province offers either amount for a whole year of 365 days. The calculator then does with it what CRA's payroll formulas do with the amount an employee writes on the federal Form TD1, which T4127 calls HD: it takes HD off annual income before working out either tax, so the federal tax and the territorial tax are both worked out on the lower income and an employer withholds less of both. The federal basic personal amount, and Yukon's, which copies it, are the exception: T4127 tests them on income before the deduction (it writes NI = A + HD), so the deduction never changes how much of that amount a high earner keeps.
On the return itself the deduction is limited to the lesser of the daily amounts and 20% of net income (Form T2222, lines 12 and 13). It goes on line 25500, one of the amounts taken off net income to reach taxable income on line 26000, which is what federal tax and each territory's Form 428 start from. Neither the TD1 nor T4127's formulas, as read for this page, mention that limit, so payroll withholds on the whole TD1 amount. This calculator shows payroll withholding. When the limit would apply at your pay it says so under the results, with what it would add to your income tax when you file; the Tax Refund Calculator applies the limit to the return.
Not modelled: the travel deduction (for trips taken from the zone), a part year of residence (the box counts every day of the year, and a person who lived there for only part of it claims fewer days), the reduction for non-taxable board and lodging at a special work site, and the same deduction for a prescribed zone inside a province.
Worked example — $60,000 salary in Ontario
Gross salary $60,000, no RRSP contribution, Ontario.
- CPP: contributory earnings = $60,000 − $3,500 = $56,500 (under the $74,600 YMPE, so no CPP2). Base credit portion: $56,500 × 4.95% = $2,796.75. Enhanced deduction: $56,500 × 1.00% = $565.00. Total CPP: $3,361.75.
- EI: $60,000 × 1.63% = $978.00 (under the $68,900 cap).
- Federal taxable income: $60,000 − $565.00 (enhanced CPP deduction) = $59,435.00.
- Federal tax: 14% on the first $58,523 ($8,193.22) plus 20.5% on the remaining $912 ($186.96) = $8,380.18 basic tax. Credits at 14%: BPA $16,452 + employment amount $1,501 + CPP/EI credit-eligible $2,796.75 + $978.00 = $21,727.75 × 14% = $3,041.89. Federal tax: $8,380.18 − $3,041.89 ≈ $5,338.30.
- Ontario tax: 5.05% on the first $53,891 ($2,721.50) plus 9.15% on the remaining $5,544 ($507.28) = $3,228.77 basic tax. Credits at 5.05%: BPA $12,989 + the same $3,774.75 of CPP/EI = $16,763.75 × 5.05% = $846.57, leaving $2,382.20 after credits — below the $5,818 surtax threshold, so no surtax, and above the $600 ceiling of the Ontario tax reduction, so none of that either. Ontario Health Premium on $59,435 of taxable income (between $48,600 and $72,000): a flat $600. Ontario tax: $2,382.20 + $600 ≈ $2,982.20.
- Net pay: $60,000 − $5,338.30 − $2,982.20 − $3,361.75 − $978.00 ≈ $47,339.75 a year — about $3,945 a month.
Figures above are rounded to the cent at each step for readability; the calculator itself carries full precision throughout, so its result differs from this worked example by a few cents, and from an actual pay stub by a somewhat larger amount for the reason in the FAQ below.
How a real pay stub differs from this calculator
Real payroll doesn't run this calculation once, on a whole year. It applies T4127's formulas to every pay period. Under Option 1, the method behind CRA's T4032 deduction tables and its online payroll calculator, each cheque stands alone: the period's taxable pay is multiplied by the number of pay periods to estimate a year, the tax on that year is worked out and divided back down, and the tax taken from earlier cheques is not looked at. Option 2, intended for employees whose pay varies considerably, is the one that uses cumulative averaging: it projects the year from what you have been paid so far and corrects each cheque against the tax already withheld, so it is the only option that settles up within the year; under Option 1 any difference is settled on your return. CPP, EI and QPIP behave differently from both: each comes off at its full rate from the first cheque and stops only when your actual year-to-date contributions have reached that year's maximum, not a projected one, and CPP2 starts only once your actual earnings have passed the first ceiling. If you earn above the ceilings, your early cheques are therefore lower and your later ones higher than this calculator's per-cheque figures (the first FAQ below works through an example), and an employee who changes jobs mid-year can even be over-deducted across two employers and have to claim the excess back at tax time. Bonuses and other non-periodic payments use a different formula in T4127 (the bonus method), which finds the tax on your regular annual pay with the payment and without it and takes the difference. None of this changes the tax you owe for the year, which is settled on your return; it changes when the money leaves your pay.
Several real credits and deductions are not modelled here, and they do change what you owe: union dues, the medical expense credit, charitable donations, tuition transfers, the age or pension income amounts, Ontario's LIFT credit, and the low-income tax reductions of New Brunswick, Newfoundland and Labrador, Prince Edward Island and Nova Scotia (each claimed on the return, none in the payroll formulas; those pages give the 2025 amounts). A few assumptions are built in as well. The calculator charges CPP on all earnings, whereas an employer deducts it only from the first pay in the month after an employee turns 18 up to the month they turn 70, and an employee aged 65 to 69 who receives a CPP or QPP retirement pension can stop it by election (form CPT30); QPP is required only while the employee is younger than 73 at the end of the year, with a similar election from age 65 (form RR-50-V). It assumes you work in the province or territory where you live, whereas payroll withholds for the one where you report to work. For Quebec residents it leaves out the public prescription drug insurance premium, which anyone with no access to a private plan pays on the return (between $0 and $789 a person at the rates in effect from 1 July 2026, depending on net family income), and the amount for a person living alone. And the northern residents deduction is worked out here only for a whole year in the three territories (see the section above); for a part year, or for a prescribed zone inside a province, an employee can still claim it on Form TD1 and see less tax withheld than shown here.
FAQ
Why does my actual pay stub not match this calculator exactly?
This calculator applies the Option 1 formulas of CRA's T4127 payroll guide once, to your whole year treated as a single pay period. Payroll software applies T4127's formulas to each pay period instead. Under Option 1 each cheque stands alone: its taxable pay is multiplied by the number of pay periods to estimate a year, the tax on that year is worked out and divided back down, and the tax taken from earlier cheques is not looked at; CRA's T4032 deduction tables and its online payroll calculator work this way. Cumulative averaging is T4127's Option 2, meant for employees whose pay varies considerably: it projects the year from the pay so far and corrects each cheque against the tax already withheld, so only Option 2 settles up within the year. Under Option 1 any difference is settled when you file your return. CPP and EI also come off at their full rates from the first cheque until each year's maximum is reached, and then stop. If you earn more than $74,600 (CPP) or $68,900 (EI), your early cheques are therefore lower, and your later ones higher, than this calculator's per-cheque figure. At $150,000 paid every two weeks outside Quebec, for example, CPP and EI take $429.30 from each of the first eleven cheques ($335.26 for CPP and $94.04 for EI), against the $178.71 and $43.20 this calculator shows when it spreads the year's totals over 26 cheques: about $207 more in each of those eleven. Below those ceilings a single pay stub can differ from this calculator's per-period figure by a few dollars, and by more if your pay varies during the year.
What is CPP2 and why does the calculator only show one CPP line?
CPP2 is a second, separate contribution that applies only to earnings between the Year's Maximum Pensionable Earnings ($74,600 in 2026) and a second ceiling, the Year's Additional Maximum Pensionable Earnings ($85,000 in 2026), at a 4% employee rate. It exists because CPP's regular contribution (T4127 calls it the total contribution: the base contribution plus the first additional contribution) stops entirely at $74,600 — CPP2 was added in 2024 to extend contributions, and future benefits, a little further up the income scale. This calculator adds CPP2 into the single CPP row shown, since that is what actually leaves your paycheque; the table's note says how much of the total is CPP2 whenever it applies (income above $74,600).
Why is Quebec so different from every other province?
Quebec is the only province that runs its own, separate income tax system and its own pension and parental-leave plans. Quebec residents pay QPP instead of CPP (same $74,600/$85,000 ceilings, slightly different rates) and QPIP (Quebec Parental Insurance Plan) alongside a reduced-rate EI premium, since QPIP already covers the parental benefits EI provides everywhere else. On the federal return, Quebec residents also receive a 16.5% abatement — a flat reduction of federal tax. Finance Canada explains it as 13.5 percentage points from the 1960s opting-out arrangements for certain federal-provincial programs, which only Quebec took up (Ottawa lowered its income tax by that amount and Quebec raised its own by the same), plus 3 points for the discontinued federal youth allowances program. For the provincial figure this calculator applies Revenu Québec's own 2026 source-deduction formula (TP-1015.F-V): bracket tax on income after the 6% deduction for workers (maximum $1,450) and the enhanced-QPP deduction, less the $18,952 basic amount at 14%.
How does an RRSP contribution change my take-home pay?
A payroll RRSP contribution comes off your gross pay before tax, so it lowers your taxable income for both federal and provincial tax — the actual cost to your net pay is always less than the contribution itself, because part of it is tax you would otherwise have paid. It does not change CPP/QPP or EI/QPIP, which are calculated on gross pay regardless of RRSP contributions. This calculator caps the RRSP field at 18% of your gross income or the 2026 annual dollar limit ($33,810), whichever is lower — CRA's own room formula, though CRA applies the 18% to the previous year's earned income and adds any unused room carried forward, which this calculator ignores.
What is the difference between my average and marginal tax rate?
Average tax rate is your total federal-plus-provincial income tax divided by your gross income — the overall share of every dollar you earned that went to income tax. Marginal tax rate is the combined federal and provincial income-tax rate on your next dollar of taxable income, which is almost always higher because Canada's brackets are progressive: only the income inside each bracket is taxed at that bracket's rate, not your whole income. It also moves between bracket edges. Ontario's surtax adds a percentage on top of Ontario tax itself once that tax crosses a threshold; at low incomes the phase-out of Ontario's and BC's tax reductions has a similar effect; and at high incomes the basic personal amount shrinks as income rises (the federal one in every province and territory, and Manitoba's and Yukon's own). The marginal rate shown here includes all of these. It does not include CPP/QPP and EI premiums, which have their own lines.
Does this calculator cover bonuses or irregular pay?
No. Employers withhold tax on a bonus, a retroactive pay increase or another non-periodic payment with a separate formula in T4127 (the bonus method): the tax on your regular annual pay plus any earlier bonuses and the new payment, less the tax on your regular annual pay plus the earlier bonuses. It does not simply add the payment to a flat annual calculation. Your tax for the year is settled on your return whichever way it was withheld, but a single paycheque containing a bonus will not match what this calculator would show for that same total annual income entered as a flat salary.
Does this calculator include the Northwest Territories and Nunavut payroll tax?
Yes. When you choose the Northwest Territories or Nunavut it takes 2% of your gross pay off as a payroll tax, on its own line, because both territories charge their employees that tax and make employers withhold it. It is not income tax, so an RRSP contribution does not reduce it and it is not part of the average or marginal rate. Residents can also claim a refundable cost of living tax credit when they file, up to $942 in the Northwest Territories and up to $1,500 in Nunavut, which this calculator does not include.
This page is general information based on published 2026 federal and provincial payroll formulas, not tax or financial advice. Your own return may differ — talk to a licensed accountant about your specific situation.
Formula last verified: 8 October 2026 — built on CRA's T4127 payroll-deduction formulas (122nd ed., effective 2026-01-01, and 123rd ed., effective 2026-07-01), applied to the whole year as a single pay period (T4127's Option 1; payroll software applies them to each pay period): federal tax by bracket with credits for the basic personal amount (incl. its high-income phase-out), the Canada Employment Amount, the credit-eligible portion of CPP/QPP, and EI/QPIP premiums, all at the lowest federal rate, with the enhanced CPP/QPP layer (the 1% first-additional tier plus all of CPP2/QPP2) deducted from income instead; provincial tax the same shape at each province's own lowest rate and basic personal amount for all 13 provinces/territories, plus Ontario's surtax, Health Premium and $300 basic tax reduction, BC's tax reduction credit, and the Manitoba and Yukon basic-personal-amount phase-outs as separate steps. On 7 and 8 October 2026 readers independent of the first opened the documents listed under Sources below (each is dated there) and compared the engine with them: the federal figures and those of the twelve other jurisdictions with T4127's Tables 8.1 and 8.2 (122nd and 123rd editions) and its formulas, Quebec's with TP-1015.F-V, the CPP, QPP, EI and QPIP rates and maximums with the CRA, ESDC and Revenu Québec documents (7 October), and the territorial payroll tax with the two Payroll Tax Acts (7 October). Net pay was also derived by hand at $30,000, $62,400, $90,000, $150,000 and $250,000 in every jurisdiction: for the twelve from T4127's formulas, agreeing with the engine to the cent, and for Quebec from Revenu Québec's, agreeing within $1 (the formula rounds its constants to whole dollars, the engine uses exact brackets). On 3 September 2026 the federal brackets, BPA phase-out, Canada Employment Amount, CPP/CPP2/QPP/QPP2/EI/QPIP rates and caps, and the Ontario/Alberta/BC/Quebec provincial figures were cross-checked against reference cases run live on CRA's own Payroll Deductions Online Calculator (PDOC) and independently re-derived by hand for cases where PDOC's single-period mode cannot correctly cap CPP2/EI mid-year; PDOC was not run again on 8 October. In that pass a fourth case was run live on PDOC (version 2026-06-11): Ontario, $22,000 a year entered as $1,833.33 monthly, pay date 15 September 2026, claim code 1 both federally and provincially. PDOC returned $30.19 federal tax, $22.63 Ontario tax, $91.73 CPP and $29.88 EI per month ($362.28, $271.56, $1,100.76 and $358.56 a year, net $19,906.80); this page gives $362.27, $271.62, $1,100.75 and $358.60 (net $19,906.76). The Ontario line agrees only because the $300 basic tax reduction is applied — without it the figure is $490. An independent verification pass on 3 September 2026 re-opened every rate against its primary source (T4127 122nd edition, the T4032 provincial tables, gov.bc.ca, ontario.ca, the ESDC EI release, Revenu Québec's TP-1015.F-V) and re-derived 29 cases across all 13 jurisdictions with a separate R × A − K implementation; a golden-test suite (
tests/canada-take-home-goldens.js in the project repository) mirrors the page's math verbatim and asserts every bracket boundary, CPP/QPP/EI/QPIP cap, the RRSP limit, the full Ontario Health Premium schedule, the Ontario and BC reductions, the Manitoba/Yukon phase-outs and the Quebec formula against those derivations. The T4032 provincial tables and TaxTips.ca (a secondary source) used in that pass were not read again on 8 October and are no longer cited: every figure they supported is cited to T4127 or to the government's own page instead. The Ontario Health Premium's tier schedule is read from T4127 (factor V2) and agrees with ontario.ca ($0 at a taxable income of $20,000 or less, rising through flat steps to $900 above $200,600). The basic personal amounts for Manitoba, Saskatchewan, Nova Scotia, New Brunswick, Prince Edward Island, Yukon, the Northwest Territories and Nunavut are those of T4127's Table 8.2 and its BPAMB and BPAYT formulas. The 2026 RRSP dollar limit ($33,810) is on CRA's registered-plan dollar limits page. Quebec's provincial tax implements Revenu Québec's own 2026 source-deduction formula,
TP-1015.F-V (read directly on 3 September and again on 8 October 2026): annual taxable income I = G − F − H − CSA — gross, less RRSP contributions, the 6% deduction for workers capped at $1,450, and the enhanced-QPP deduction — and tax Y = T × I − K − 0.14 × E with E the $18,952 basic amount; base QPP, EI and QPIP earn no separate Quebec credit, because the basic personal amount already takes those contributions into account (Revenu Québec's income tax guide, line 350), and the deduction for workers is separate relief on work income. An earlier draft of this page deducted the full QPP and QPIP and omitted the workers' deduction, which understated Quebec tax by about $500 at $80,000; it was corrected in the verification pass. Manitoba's 2026 thresholds ($47,000 / $100,000) and $15,780 basic personal amount are not indexed for 2025 and later years (T4127, 122nd edition, which dates the announcement 20 March 2025; the 123rd edition says there is no change for Manitoba); CRA's current-year summary page (modified 2026-06-25) still lists indexed Manitoba figures of $47,564 and $101,200 and was not followed. Manitoba's basic-personal-amount phase-out ($200,000–$400,000) and Yukon's mirroring of the federal phase-out are T4127's BPAMB and BPAYT formulas, and Ontario's $300 basic tax reduction is T4127's factor S (Table 8.2, S2). Newfoundland and Labrador's $13,094 is the 2026 tax-year basic personal amount after the increase announced on 29 April 2026, as T4127's 123rd edition states it (the $15,000 is the prorated figure payroll applies from 1 July 2026). Alberta's T4127 K5P term is nil for the credits modelled here. T4127's 123rd edition (effective 2026-07-01, T4127(E) Rev. 26 (26/06), page dated 2026-06-03), read on 7 October 2026, sets out changes for British Columbia, Newfoundland and Labrador and Prince Edward Island only (BC's 5.60% lowest rate and $690 basic reduction, Newfoundland and Labrador's $13,094 basic personal amount, PEI's 20% bracket above $200,000), says there is no change for Alberta, Manitoba, New Brunswick, the Northwest Territories, Nova Scotia, Nunavut, Ontario, Saskatchewan or Yukon, refers readers to Revenu Québec for Quebec, and sends readers to the 122nd for any section it does not reproduce; the engine uses those three provinces' announced annual figures, not the prorated July-to-December withholding figures the edition also prints. Sources:
CRA current-year tax rates and brackets (modified 2026-06-25);
T4127 payroll deductions formulas, 122nd edition (effective 2026-01-01, T4127(E) Rev. 26 (26/05), page dated 2025-11-19);
T4127, 123rd edition (effective 2026-07-01, T4127(E) Rev. 26 (26/06), page dated 2026-06-03);
CRA CPP contribution rates, maximums and exemptions (modified 2025-10-31);
CRA CPP2 contribution rates and maximums (modified 2025-10-31);
ESDC 2026 EI premium rate announcement (2025-09-12);
BC personal income tax rates (last updated 17 April 2026);
Ontario Health Premium (updated 22 January 2026);
BC basic tax credits (tax reduction) (last updated 20 April 2026);
CRA RRSP dollar limits (modified 2025-12-01);
Revenu Québec TP-1015.F-V 2026 (Quebec formula, QPP, QPIP) (2026-01);
Revenu Québec TP-1015.G-V 2026, Guide for Employers (QPP ages) (2026-01);
Revenu Québec TP-1.G-V, Guide to the Income Tax Return 2025 (line 350, basic personal amount) (2025-12);
Quebec 2026 indexed parameters, Ministère des Finances du Québec (November 2025);
Department of Finance Canada, Quebec Abatement (modified 2026-03-09);
RAMQ, prescription drug insurance rates in effect (no date printed; read 8 October 2026);
CRA T4001, Employers' Guide, Payroll Deductions and Remittances (modified 2026-01-21);
CRA Form TD1, 2026 Personal Tax Credits Return (2026 edition); CRA's 2025 provincial forms, the latest published, for the low-income tax reductions:
NB428,
NL428,
PE428 and
NS428, and
MB428, which lists a family tax benefit among Manitoba's non-refundable credits (not in T4127, not modelled).
Correction of 7 October 2026 (made while the verified date was still 3 September 2026; the sources named here were read that day). The calculator had left out the payroll tax that the Northwest Territories and Nunavut charge their employees, so every take-home figure for those two territories was too high by exactly 2% of gross pay. It now takes 2% of gross pay off as a line of its own, outside income tax, the average and marginal rates and the RRSP effect. Read on 7 October 2026: the Payroll Tax Act,
S.N.W.T. 1993, c. 11 (office consolidation, amendments listed to S.N.W.T. 2023, c. 30; sections 1 to 19 and 70 in full, the rest by its table of contents) and its Nunavut text,
the Nunavut Payroll Tax Act (the same Act duplicated; sections 1 to 10 in full, the rest by its headings and a search, and every later amendment to it). Section 3(1): the employee is liable for 2% of the remuneration paid in the year (the Northwest Territories charged 1% from 1 July 1993 and 2% from 1 January 2005, by S.N.W.T. 2004, c. 5; Nunavut has charged 2% since 1 January 2007, by S.Nu. 2006, c. 17). Section 1(1): remuneration is every payment, benefit and allowance that ss. 5(1), 6 or 7 of the federal Income Tax Act put into income (salary, wages, bonuses, commissions, taxable allowances), except a pension paid to a retired former employee and any amount deductible under s. 8(1)(c) or s. 110(2) of the federal Act (NWT Finance's page lists these as the clergy residence deduction and an amount given back to a religious order by a member who has taken a vow of perpetual poverty), so it is gross pay. Sections 5(1) and 6(1)(b): the employer deducts it from pay and remits it. Section 3(2), (2.1) and (2.2), with s. 2 of the
Payroll Tax Regulations: someone who normally works outside the territory pays only on the days worked in it, and nothing if that pay from the employer is $5,000 or less in the year; the calculator assumes the territory chosen is where the pay is earned. Nunavut's rate for 2026 is confirmed by the Government of Nunavut's
Nunavut Tax Rates 2026 sheet (as of 1 January 2026: 2% of taxable remuneration). That it is not income tax rests on the Government of the Northwest Territories'
Payroll Tax for Employees page (undated; it is not on the T4 and "cannot be deducted from personal income tax") and on s. 8(2) of the
Income Tax Act (Canada), which allows no deduction from employment income except those s. 8 lists; CRA's T4127, T4032NT and T4032NU and RC4120 do not mention it. What the calculator does not model: the refundable cost of living tax credits that residents claim at filing,
s. 4.1 of the Northwest Territories Income Tax Act (2.6% of net income up to $12,000, then 1.25% up to $48,000 and 1% up to $66,000, a maximum of $942, topped up to $350 for a single person or $700 for a couple) and
s. 4.1(1.2) and (1.3) of the Nunavut Income Tax Act (2% of net income, a maximum of $1,500, plus 2% of net income over $60,000 to a maximum of $255.12 for a single parent), as CRA's 2025 forms
NT479 and
NU479 apply them; the 2026 forms were not yet published and the statutory amounts are not indexed. Scope of the search for other employee-paid levies, 7 October 2026: Ontario's and British Columbia's Employer Health Tax pages, Manitoba's Health and Post Secondary Education Tax Levy page and Newfoundland and Labrador's Health and Post Secondary Education Tax page describe taxes paid by employers; Revenu Québec says employees generally do not pay the health services fund contribution; Yukon's taxation page lists no payroll tax. Alberta, Saskatchewan, Nova Scotia, New Brunswick and Prince Edward Island were not searched individually. The dates these documents carry: the Payroll Tax Regulations (R-049-93, as amended to R-093-2024, Territorial Printer 2024); section 8 of the Income Tax Act (Canada), current to 2026-09-21 and last amended 2026-06-18; the Northwest Territories Income Tax Act (office consolidation, 2023); the Nunavut Income Tax Act (consolidation date 18 September 2025, to which S.Nu. 2026, c. 8, in force 1 July 2026, adds only the Nunavut Child Benefit); the Government of Nunavut's rate sheet (as of 1 January 2026); and CRA's forms NT479 and NU479 (2025 edition). The Government of the Northwest Territories' pages carry no date. Of the pages searched for other employee-paid levies, Ontario's Employer Health Tax page was updated 18 September 2026, British Columbia's was last updated 17 June 2026, Yukon's taxation page was modified 2025-05-13, Manitoba's and Newfoundland and Labrador's carry no date, and Revenu Québec's two pages (no date either) were read in a browser on 7 October 2026.
Corrections of 8 October 2026, after the second read. This page described CRA's payroll method wrongly: T4127 has no method called the annual method; the calculator applies Option 1's formulas to the whole year, payroll applies them per pay period (Option 1) or on year-to-date averages (Option 2, cumulative averaging), only Option 2 settles up within the year, and CPP and EI come off at their full rates until each year's maximum is reached. It gave a wrong reason for the Quebec abatement (Finance Canada's is the 1960s opting-out arrangements and the youth allowances program, not that Quebec administers its own tax); said the deduction for workers stands in for a Quebec credit for QPP, EI and QPIP contributions (Revenu Québec's guide says the basic personal amount takes them into account); called $4,230.45 the maximum base contribution (it is the total of the $3,519.45 base contribution and the $711.00 first additional contribution); said the Ontario tax reduction claws itself back two dollars for every dollar of tax and ends at about $26,000 (the reduction falls by a dollar for each dollar of tax, so the tax payable rises by two, and it is gone at a salary of about $26,700); credited Manitoba's unindexed thresholds to the 2026 budget (T4127 dates the announcement 20 March 2025); and credited the Ontario Health Premium schedule and eight basic personal amounts to TaxTips.ca instead of T4127. Its list of what is not modelled now includes the low-income tax reductions of four provinces and the payroll assumptions described above. No calculator result changed.
A further correction of 11 October 2026 (the verified date above is unchanged: no source was read again for it). The marginal tax rate under the results was shown to one decimal and is now shown to two, rounded from the engine's figure, as the RRSP Refund Calculator shows it: Ontario at $60,000 read 29.6% and now reads 29.65%, and Quebec at $60,000 read 36.1% and now reads 36.12%. The average rate keeps one decimal. No other figure changed. The two T4127 links in the sources list above now go to each edition's publication page, the page that carries the revision and the page date printed beside the link; they went to the editions' landing pages, which do not carry the revision string.
Added 23 October 2026 (the verified date above is unchanged: only the sources named in this paragraph were read that day, in the passages named): a box for workplace pension plan (RPP) contributions, taken off taxable income as line 20700 is and kept outside the RRSP limit, with a note under it. CRA's
T4 slip: Statement of Remuneration Paid (page dated 2026-02-02) has box 20 (RPP contributions) entered on line 20700, and CRA's
line 20700 page (2026-01-20) says generally you can deduct the total of all amounts from box 20 of your T4 slips. T4127's glossary and Step 1 of Option 1 (122nd edition, page dated 2025-11-19) define factor F as payroll deductions for employee contributions to an RPP or an RRSP, among others, and take F off the pay before annual taxable income is worked out; because F holds both, the note says to enter each dollar in one box only. The glossary defines pensionable earnings as the gross income plus any taxable benefits for the pay period, and the calculator keeps CPP, QPP, EI and QPIP on the full pay. With the box empty no figure changes.
Added 24 October 2026 (the verified date above is unchanged: only the sources named in this paragraph were read for it, on 23 October 2026, in the passages named): the note under the pension box now says “EI as this page works it out”, in Quebec and outside it, where it said that QPP, EI and QPIP in Quebec stay on the full pay “as this page works them out”. For QPP, Revenu Québec's TP-1015.G-V and TP-1015.F-V (both the 2026-01 edition, listed above) were read in these places: G-V section 1.4 defines salary or wages as gross employment income and section 4.2 has QPP contributions withheld on salary or wages; F-V section 3.1 takes the QPP contribution from pensionable salary or wages with no term for an RPP contribution, and its Appendix 1 example (a $4,000 gross salary every two weeks with a $200 RPP contribution) prints the deduction for additional QPP contributions as $38.65, which is 1% of $4,000 less $134.61 (the $3,500 exemption divided by 26 pay periods, which G-V's own QPP example prints as 134.61), where $3,800 less $134.61 would give $36.65 (that arithmetic is this page's). The
Act respecting the Québec Pension Plan (CQLR c. R-9, printed “À jour au 15 octobre 2026”), s. 50, starts the salary and wages on which QPP is charged from the base wages within the meaning of s. 1159.1 of the
Taxation Act (CQLR c. I-3, printed with the same date), which counts amounts included under Chapters I and II of Title II of Book III of Part I in computing income from an office or employment; the Taxation Act's deduction for RPP contributions, s. 70, sits in Chapter III, Deductions. For QPIP, G-V section 5.2 says remuneration subject to Employment Insurance premiums is also generally subject to QPIP premiums, and the
Act respecting parental insurance (CQLR c. A-29.011, printed “À jour au 15 octobre 2026”), s. 43, defines eligible wages by the insurable earnings determined under the Employment Insurance Act, so the note says QPIP is generally charged on the same pay as EI. None of the texts read for this note says in terms that an RPP contribution leaves EI insurable earnings whole: that EI, and so QPIP, stays on the full pay is how this page works them out, as it did before, and the note now says so of EI outside Quebec too. No figure on the page changed.
Added 24 October 2026 (the verified date above is unchanged: only the sources named in this paragraph were read for it, on 24 October 2026, in the passages named): a box for the northern residents deduction in Yukon, the Northwest Territories and Nunavut, the rule under it, a note under the results and, where it applies, a note on the 20% limit. CRA's
page for line 25500 (tax year 2025; it prints no modified date, and its page metadata gives 2026-01-20), whole apart from its lists of places in the provinces and the later examples of the travel deduction: every place in Yukon, Nunavut and the Northwest Territories is in a prescribed northern zone; a qualifying period of at least six consecutive months that can begin or end in the year; $11.00 a day, and a further $11.00 a day for a dwelling the person maintained and lived in when no one else claims the basic amount for it, employer-provided housing included; the page does not mention a 20% limit.
Form T2222 (2025, T2222 E (25); the file is dated 20 January 2026 and the form's page 23 January 2026), Steps 1, 2 and 4: lines 1 to 5, and lines 12 and 13 (20% of the net income on line 23600, and the lesser of that and the daily amounts). The Income Tax Act,
section 110.7 (the Act is current to 2026-09-30 and was last amended 2026-06-18), whole: the same $11.00 amounts, and the lesser of those and 20% of the taxpayer's income for the year. The Income Tax Regulations,
section 7303.1 (current to 2026-09-30, last amended 2026-06-18, page modified 2026-10-15), whole: its first paragraph names Yukon, the Northwest Territories and Nunavut as a prescribed northern zone. CRA's T4127, 122nd edition (page dated 2025-11-19, linked above), in every passage that mentions HD, of which this page rests on Chapter 2 (the basic personal amount formulas, “NI = A + HD”, and Yukon's mirroring the federal one), the glossary rows HD and NI, Chapter 4 Steps 1, 2, 4 and 6, and Yukon's K4P (the bonus formulas and Chapter 5 mention HD too and are not modelled here; K4P's footnote reads the Canada employment amount against gross employment income, where the engine reads it against A, which gives the same tax, since A can be the smaller only below $1,501, where the basic personal amount already leaves no tax: that arithmetic is this page's); and the 123rd edition (page dated 2026-06-03, linked above): its glossary row HD and its statement that nothing changes for the Northwest Territories, Nunavut or Yukon. CRA's T4001 (linked above; modified 2026-01-21), the passage on the deduction for living in a prescribed zone and the one on reducing the remuneration on which income tax is deducted, with its example. CRA's
Form TD1, 2026, in e-text (TD1 E (26); the form's page is dated 2025-12-08 and the file 17 August 2026): the back page's $11.00 and $22.00 a day claims, worded “more than six months in a row beginning or ending in 2026” where the line 25500 page and the Act say at least six consecutive months (the box's rule uses the latter), and its list of reasons to file the form; and the text of the
TD1YT,
TD1NT and
TD1NU PDFs (each E (26); the files are dated 4 December 2025; the text was read in the browser and has no prescribed-zone line, so the claim is made on the federal form). CRA's
T4032-NT, January 2026 (T4032-NT(E) Rev. 26; page modified 2025-12-17), its first step-by-step example, lines (1) to (22): line (5) takes $4,015.00 off an annual net income of $62,798.84 to reach an annual taxable income of $58,783.84, and the federal and the Northwest Territories tax are worked out on that. With its weekly pay of $1,300.00 entered here as $67,600, its weekly RRSP contribution of $80.00 as $4,160, the Northwest Territories chosen and $11 a day for the whole year ($4,015, the example's line (5)), this page gives federal tax of $5,134.83 and Northwest Territories tax of $2,298.45 where the example prints $5,134.78 and $2,298.51; the cents come from the example rounding the CPP contribution to the cent each week and printing its tax constants K and KP to the dollar (that arithmetic is this page's). For where line 25500 sits, CRA's
T1 return, 2025 (5000-R, e-text; the file is dated 20 January 2026), Step 4, which lists line 25500 among the amounts taken off net income to reach taxable income; the page for
line 26000 (2026-01-20), which says taxable income “is the amount used to calculate the federal tax on your return and the provincial or territorial tax on your Form 428 (except Quebec)”; and line 1 of the 2025
YT428,
NT428 and
NU428 (each dated 20 January 2026), “Enter your taxable income from line 26000 of your return”. The territories' own income tax Acts were not read. Neither the TD1 nor T4127 sets out a 20% limit in the passages read, so payroll here takes the whole TD1 amount and the limit is shown separately, as the return's. With the box on None, or in any other province or territory, no figure on the page changed.
How we verify every number → Cite as: Countworthy, “Canada Take-Home Pay Calculator (2026)”, countworthy.com/canada/take-home-pay-calculator, formula last verified 8 October 2026.