Enter your annual employment income and province to see how much federal and provincial income tax you will pay in 2026, plus CPP or QPP, EI and your real take-home pay. Results update instantly.
How this income tax calculator works
Canada taxes income at two levels. The federal government applies one set of progressive brackets everywhere, and each province adds its own brackets on top. The calculator applies both sets of 2026 brackets to your taxable income, subtracts the basic personal amount and the main non-refundable credits (CPP or QPP, EI and the Canada employment amount), and then deducts payroll contributions to show what lands in your bank account.
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% |
The lowest federal rate fell to 14% for 2026 (it was 15% before July 2025). The federal basic personal amount is $16,452 for most people, so roughly the first $16,452 of income is tax-free federally.
Average vs. marginal tax rate
Your marginal rate is the tax on your next dollar of income, combining the federal and provincial bracket you are in. Your average rate is total income tax divided by total income, and it is always lower because the first dollars are taxed at low rates or not at all. Earning more never reduces your take-home pay: only the dollars above a threshold are taxed at the higher rate.
Payroll deductions included
- CPP: 5.95% of earnings between $3,500 and $74,600, plus 4% CPP2 on earnings up to $85,000.
- QPP (Quebec): 6.30% on the same base, plus 4% on the second tier.
- EI: 1.63% of insurable earnings up to $68,900 (1.30% in Quebec).
- QPIP (Quebec only): 0.43% up to $103,000.
Frequently asked questions
Is this calculator accurate for self-employed income?
It is built for employment income. Self-employed people pay both halves of CPP and no EI, so their net income will be lower than shown.
Which deductions can lower my tax?
RRSP and FHSA contributions are the most common. Enter them in the deduction field to see the effect, or use our RRSP tax savings calculator.
Where can I compare provinces?
Change the province in the calculator. Alberta and British Columbia usually leave more in your pocket at middle incomes, while Quebec and Nova Scotia take more. See also our Ontario and Quebec calculators.
Sources: Canada Revenue Agency 2026 indexation, provincial finance ministries. Estimates only, not tax advice.