Your take-home pay is what's left of your gross pay after federal and provincial income tax, CPP or QPP contributions and EI premiums come off. Use our take-home pay calculator for Canada below to estimate your 2026 net pay, and what's left of each paycheque, in any province.
The salary your employer quotes you when you're hired isn't the amount that lands in your bank account. In Canada, a variety of deductions come off your pay, which means the earnings you're left with (your net salary) are lower than what your employer originally paid you (your gross salary).
If you want to know exactly how much pay you take home, you'll need to figure out which deductions are made. Understanding your net salary helps you budget, save and make sure you can comfortably cover all your debt payments.
Below, you'll find each deduction that comes off your pay in Canada and how to work out what you actually take home.
Key Points
- Your take-home (net) pay is your gross salary minus federal tax, provincial tax, CPP or QPP, EI and, in Quebec, QPIP.
- For 2026, the lowest federal tax rate is 14%, and the federal basic personal amount means you pay no federal tax on up to $16,452 of income.
- Each province sets its own brackets on top. Alberta's 8% bracket covers the first $61,200 of income, and British Columbia raised its lowest rate to 5.6% for 2026.
- In 2026, CPP takes 5.95% of your earnings (QPP 6.3% in Quebec), up to $4,230.45, and EI takes 1.63%, up to $1,123.07.
Take-Home Pay Calculator
Select your province or territory, then enter your gross annual income to see your take-home pay after federal and provincial tax, CPP/QPP, and EI.
This calculator is for informational purposes only. CRA and provincial tax rules vary by individual situation, and actual deductions may differ.
How To Calculate Your Take-Home Pay In Canada
To calculate your take-home pay, start with your gross pay and subtract federal tax, provincial tax, CPP or QPP contributions and EI premiums. In Quebec, you also subtract QPIP premiums.
Gross pay minus federal tax minus provincial tax minus CPP/QPP minus EI (and QPIP in Quebec) = take-home pay
To calculate your net salary, or take-home pay, you'll need to figure out how much federal and provincial tax you'll pay. Other deductions, such as the Canada Pension Plan (CPP), Quebec Pension Plan (QPP), Quebec Parental Insurance Plan (QPIP) and Employment Insurance (EI), should also be taken into account.
Federal Tax
Federal tax is the same in every province. In 2026, the lowest federal rate is 14% and the highest is 33%.
Federal tax is calculated on your gross taxable income after non-refundable tax credits have been applied, including CPP/QPP, QPIP and EI premiums. In Canada, income is taxed at multiple brackets. In general, those with lower incomes pay a lower percentage in tax than those with higher incomes.
The biggest credit most people get is the basic personal amount. In 2026, the federal basic personal amount is $16,452, and employees can also claim the Canada employment amount of $1,5011. The basic personal amount is reduced for very high incomes.
The federal tax brackets for 2026 are:
| Federal Tax Rate 2026 | Federal Income Tax Bracket 2026 |
| 14% | Applicable to the first $58,523 of taxable income |
| 20.5% | Applicable to taxable income over $58,523 to $117,045 |
| 26% | Applicable to taxable income over $117,045 to $181,440 |
| 29% | Applicable to taxable income over $181,440 to $258,482 |
| 33% | Applicable to taxable income over $258,482 |
Provincial Tax
Provincial tax is added on top of federal tax, and each province sets its own brackets and credits. That's why the same salary leaves you with different take-home pay in different provinces.
Like federal tax, provincial tax is calculated using brackets, after tax credits are applied. The Canada Revenue Agency (CRA) handles individual income taxes for every province except Quebec, which is administered by Revenu Quebec.
Tax Rate By Province In Canada
The following outlines the 2026 tax rates in four of Canada's largest provinces1.
Quebec
| 2026 Quebec Tax Rate | 2026 Taxable Income |
|---|---|
| 14% | On the first $54,345 |
| 19% | Over $54,345 up to $108,680 |
| 24% | Over $108,680 up to $132,245 |
| 25.75% | Over $132,245 |
Ontario
| 2026 Ontario Tax Rate | 2026 Taxable Income |
|---|---|
| 5.05% | On the first $53,891 |
| 9.15% | Over $53,891 up to $107,785 |
| 11.16% | Over $107,785 up to $150,000 |
| 12.16% | Over $150,000 up to $220,000 |
| 13.16% | Over $220,000 |
British Columbia
| 2026 B.C. Tax Rate | 2026 Taxable Income |
|---|---|
| 5.6% | On the first $50,363 |
| 7.7% | Over $50,363 up to $100,728 |
| 10.5% | Over $100,728 up to $115,648 |
| 12.29% | Over $115,648 up to $140,430 |
| 14.7% | Over $140,430 up to $190,405 |
| 16.8% | Over $190,405 up to $265,545 |
| 20.5% | Over $265,545 |
British Columbia raised its lowest tax rate from 5.06% to 5.6% for 2026. Because the change came partway through the year, employers use a higher 6.14% rate on that first bracket from July to December 2026 so the full year's tax is collected. Your final tax is still worked out at 5.6% when you file your return.
Alberta
| 2026 Alberta Tax Rate | 2026 Taxable Income |
|---|---|
| 8% | On the first $61,200 |
| 10% | Over $61,200 up to $154,259 |
| 12% | Over $154,259 up to $185,111 |
| 13% | Over $185,111 up to $246,813 |
| 14% | Over $246,813 up to $370,220 |
| 15% | Over $370,220 |
Alberta's lowest rate is 8%, and in 2026 it applies to the first $61,200 of taxable income.
How Much Take-Home Pay Do You Keep By Province?
Because provincial tax rates differ, the same salary leaves you with different take-home pay depending on where you live. Each province sets its own brackets, rates and basic personal amount, so the gap between provinces changes as your income goes up.
Quebec's provincial rates start at 14%, and Quebec workers also pay QPIP and a higher pension contribution through the QPP. To see exactly what you'd take home on your salary in your province, use the provincial take-home pay calculators linked near the end of this guide.
Average Tax Rate vs. Marginal Tax Rate
Your marginal tax rate is the rate on your next dollar of income, while your average tax rate is your total tax divided by your total income. Two numbers describe how much tax you pay, and they're easy to mix up:
- Marginal tax rate is the rate applied to your next dollar of income, which is the combined federal and provincial rate of your highest bracket. It tells you how much of a raise or bonus you'll actually keep.
- Average (or effective) tax rate is your total tax divided by your total income. Because Canada's brackets are progressive, only the income within each bracket is taxed at that bracket's rate, so your average rate is always lower than your marginal rate.
For example, an Ontario resident earning $60,000 in 2026 sits in a marginal bracket of roughly 29.65% (20.5% federal + 9.15% Ontario), so each additional dollar is taxed at about 30 cents. But their average rate is much lower, because the first portions of income are taxed at 14% federally and 5.05% provincially, and the basic personal amount shields the first chunk entirely. So a raise never leaves you with less money overall, since only the income above each threshold is taxed at the higher rate.
How Do QPIP, CPP/QPP, And EI Premiums Affect Your Take-Home Pay?
CPP or QPP contributions and EI premiums come off every paycheque until you reach the yearly maximum. In 2026, an employee pays up to $4,230.45 in CPP, $416 in CPP2 and $1,123.07 in EI2.
In addition to federal and provincial tax, deductions such as QPIP, CPP/QPP and EI premiums are taken directly from your pay by your employer. When calculating your net take-home pay, include the following:
- Canada Pension Plan (CPP). CPP contributions go toward your retirement pension. When you retire, you can apply to receive regular income from the government.
- Quebec Pension Plan (QPP). Quebec has its own pension plan. If you work in Quebec, you contribute to the QPP instead of the CPP.
- Employment Insurance (EI). EI provides temporary financial relief if you're unemployed due to job loss, pregnancy, illness and other reasons.
Here are the 2026 employee rates and maximums2,3:
| 2026 Deduction | Employee Rate | Earnings It Applies To | Maximum Employee Amount |
|---|---|---|---|
| CPP | 5.95% | $3,500 to $74,600 | $4,230.45 |
| CPP2 | 4% | $74,600 to $85,000 | $416 |
| QPP (Quebec) | 6.3% | $3,500 to $74,600 | $4,479.30 |
| EI | 1.63% | Up to $68,900 | $1,123.07 |
| EI (Quebec) | 1.30% | Up to $68,900 | $895.70 |
Quebec workers also pay QPP2 at 4% on earnings from $74,600 to $85,000, up to $416.
What Is QPIP?
QPIP is a Quebec-only payroll deduction that pays for parental leave benefits. The Quebec Parental Insurance Plan (QPIP) is a mandatory social insurance program that provides financial assistance to parents of newborn or adopted children who take parental leave from work. It's administered by Quebec, and Quebec is the only province in Canada that offers such a program. The benefit pays parents a percentage of their income while they're off caring for their children.
For 2026, QPIP premiums apply to earnings up to $103,000 and are3:
- Employees: 0.430% rate, for a maximum premium of $442.90
- Employers: 0.602% rate, for a maximum premium of $620.06
- Self-employed: 0.764% rate, for a maximum premium of $786.92
How Are Bonuses And Overtime Taxed?
A bonus or overtime pay is taxed as regular employment income, and there's no special "bonus tax rate." Even so, your take-home on a bonus often looks smaller than expected, because payroll systems use the bonus method: they treat the bonus as if you earned it every pay period, which can temporarily push the withholding into a higher bracket.
Keep in mind this is only withholding, not your final tax. If too much was held back, you get it back when you file your return; if too little, you'll owe the difference. Over the full year, a bonus is taxed at your normal marginal rate, no more and no less. The same applies to overtime pay.
Why Your Paycheque May Not Match The Calculator
Your real paycheque can be a little different from a calculator estimate, because your employer works out tax one pay period at a time using the forms you filled out and the deductions your workplace takes. These are the usual reasons:
- Your TD1 forms. When you start a job, you fill out federal and provincial TD1 forms. Your employer uses them to decide which tax credits to apply to your pay, so claiming more or fewer credits changes how much tax comes off.
- More than one job. If two employers both apply the basic personal amount, too little tax comes off overall, and you may owe money when you file. You can ask one employer to take off extra tax to avoid a bill.
- Workplace deductions. Group benefits, union dues, pension plan contributions and RRSP transfers come off your pay too. Some of them, like pension and RRSP contributions taken at source, also lower the tax withheld.
- Mid-year changes. When a province changes its rates partway through the year, payroll catches up over the remaining months. That's what happened with British Columbia's lowest rate in July 2026.
Your tax return settles the difference. If more tax came off your pay than you owe for the year, you get the extra back as a refund. If too little came off, you pay the balance.
Take-Home Pay If You're Self-Employed
If you're self-employed, you pay both halves of CPP and no tax is withheld for you, so your take-home math works differently than an employee's:
- You pay both halves of CPP. Employees split CPP with their employer; self-employed workers pay the full 11.9% on earnings between $3,500 and $74,600, plus 8% (CPP2) on earnings between $74,600 and $85,000, for up to about $9,293 in 2026.
- You don't pay EI by default. EI premiums aren't deducted from self-employment income. You can choose to opt in for EI special benefits (such as parental or sickness benefits), in which case you pay the employee rate (1.63% in 2026, or 1.30% in Quebec)2.
- No tax is withheld for you. A paycheque has tax taken off automatically; when you're self-employed, you set aside your own income tax and usually pay it in instalments.
- You can deduct business expenses, which lowers your taxable income. Once your taxable sales go over $30,000 in one calendar quarter, or over the last four quarters combined, you generally have to register for and charge GST/HST.
Because of the extra CPP and the lack of withholding, put money aside for tax and CPP from every payment you receive, so you aren't caught short when you file.
How Take-Home Pay Changes With Your Income
Take-home pay doesn't drop at a flat rate as you earn more. Because Canada's brackets are progressive, lower earners keep a larger share of each dollar, while higher earners give up more of their income to tax. CPP and EI work differently. They're charged up to an annual maximum, so once your earnings pass the EI ceiling ($68,900) and the CPP ceiling ($85,000 including CPP2 in 2026), those deductions stop rising even as your salary keeps climbing.
To see exactly what you'd keep at your salary, in Ontario or any other province, use the take-home pay calculators below.
What Changes In January 2027
On January 1, 2027, EI maximum insurable earnings rise to $70,800 and the employee rate goes to $1.64 per $100 ($1.29 in Quebec). That raises the most you can pay in EI for the year from $1,123.07 to $1,161.12 ($913.32 in Quebec)2. New 2027 tax brackets and CPP limits will be added here once the CRA publishes them.
Converting An Hourly Wage To Take-Home Pay
If you're paid hourly, start by estimating your gross annual salary before working out your take-home pay. Multiply your hourly wage by the hours you work per week, then by the number of weeks you work per year:
Hourly wage x hours per week x weeks per year = gross annual salary
For example, $25 an hour at 40 hours a week for 52 weeks works out to $52,000 a year in gross pay, and $30 an hour works out to $62,400. From there, the same deductions apply (federal and provincial tax, CPP/QPP and EI) to arrive at your net pay. Part-time hours, unpaid time off or overtime will change the total, so use your actual expected hours for a realistic estimate.
Minimum Wage Rates In Canada
As of October 2026, minimum wage in Canada ranges from $15.00 an hour in Alberta to $20.17 in Nunavut, where the rate went up on September 1, 2026.
The minimum wage is the lowest amount an employer can legally pay workers in Canada. Most employees are eligible for minimum wage, regardless of their employment status or pay structure (part-time or full-time, hourly or salaried), though some jobs are exempt under each province's employment standards legislation.
Minimum wage amounts typically change every year and are often tied to the Consumer Price Index. Each province and territory sets its own minimum wage. The federal minimum wage of $18.15 an hour only covers workers in federally regulated workplaces, such as banks, postal and courier services and interprovincial transportation. PEI has already set its next increase, to $17.60 on April 1, 2027. The rates as of October 2026 are4:
| Province / Territory | Minimum Hourly | Effective Date |
| British Columbia | $18.25 | Effective as of June 1, 2026 |
| Alberta | $15.00 | Effective as of October 1, 2018 |
| Saskatchewan | $15.70 | Effective as of October 1, 2026 |
| Manitoba | $16.40 | Effective as of October 1, 2026 |
| Ontario | $17.95 | Effective as of October 1, 2026 |
| Quebec | $16.60 | Effective as of May 1, 2026 |
| New Brunswick | $15.90 | Effective as of April 1, 2026 |
| Nova Scotia | $17.00 | Effective as of October 1, 2026 |
| Prince Edward Island | $17.30 | Effective as of October 1, 2026 |
| Newfoundland and Labrador | $16.35 | Effective as of April 1, 2026 |
| Northwest Territories | $17.20 | Effective as of September 1, 2026 |
| Yukon | $18.51 | Effective as of April 1, 2026 |
| Nunavut | $20.17 | Effective as of September 1, 2026 |
| Federal Minimum Wage | $18.15 | Effective as of April 1, 2026 |
How To Read Your Pay Stub In Canada
Your pay stub shows your gross pay, each deduction and the net pay that lands in your account. When you get paid, you may only look at your net pay, but there are other figures on your pay stub worth understanding:
- Year to date. The total you've earned and the total deductions from January 1 of the current year up to your current pay period.
- Gross income. The total pay you've earned before deductions.
- Employment Insurance (EI). EI premiums deducted directly from your pay.
- CPP/QPP. Your contributions toward your pension.
- Other. Other deductions, such as health insurance premiums, union fees, private pension plans, transfers to registered accounts and charitable donations.
- Net pay. The amount left after all deductions, which is your actual take-home pay.
Benefits Of Calculating Your Take-Home Pay
Your gross salary (your pay before deductions) doesn't give you an accurate picture of what you're actually taking home. It's your net salary that matters, since it represents your true take-home pay once your tax obligations are covered. Calculating your net salary helps you:
- Budget more effectively and accurately
- Know what you can afford for bigger monthly payments, like rent and mortgage payments
- Compare offers from different employers
- Negotiate your net salary during a job interview
Take-Home Pay Across Canada
Want to calculate your net pay for your specific province? Use our provincial take-home pay calculators:
Take-Home Pay Across Canada
- Calculate Your Take-Home Pay In Nova Scotia
- Calculate Your Take-Home Pay In PEI
- Calculate Your Take-Home Pay In Saskatchewan
- Calculate Your Take-Home Pay In Newfoundland and Labrador
- Calculate Your Take-Home Pay In Alberta
- Calculate Your Take-Home Pay In British Columbia
- Calculate Your Take-Home Pay In Ontario
Final Thoughts
Understanding the difference between your gross pay and your net pay helps you budget your household expenses more accurately. Find out which deductions apply in the province or territory where you live so you can calculate your true take-home pay. If your net pay doesn't stretch as far as your bills, Loans Canada has free guides and tools to help you budget, manage debt and compare your options.
Take-Home Pay FAQs
How are my CPP/QPP deductions calculated?
How much tax would I pay on minimum wage?
What deductions come off my paycheque in Canada?
How much is the basic personal amount in 2026?
What is the maximum CPP contribution in 2026?
How do I calculate take-home pay from an hourly wage?
Will my take-home pay change in January 2027?
Will I get a tax refund if I make $30,000 a year?
Sources
- Canada Revenue Agency, "Tax rates and income brackets for individuals: Current year" and "T4032 Payroll Deductions Tables: General information," canada.ca, and "T4127 Payroll Deductions Formulas, July 2026," canada.ca, accessed October 2026; Quebec Ministry of Finance, "Parameters of the personal income tax system for 2026," quebec.ca, November 2025.
- Canada Revenue Agency, "CPP contribution rates, maximums and exemptions," "Second additional CPP contribution rates and maximums" and "EI premium rates and maximums," canada.ca, accessed October 2026.
- Retraite Quebec, "Quebec Pension Plan figures," retraitequebec.gouv.qc.ca, accessed October 2026; Quebec Ministry of Finance, "Fiscal measures announced in the Update on Quebec's economic and financial situation" (QPIP premium rates for 2026), November 2025; Government of Quebec, "How is the benefit amount determined" (QPIP maximum insurable earnings), quebec.ca, accessed October 2026.
- Employment and Social Development Canada, "Government of Canada raises the federal minimum wage," canada.ca, March 2026, and provincial and territorial minimum wage announcements (Government of Nunavut, June 30, 2026; Prince Edward Island Executive Council order EC2026-379), accessed October 2026.
