PennyCompass

Canada Take-Home Pay Calculator

Free Canada take-home pay calculator for 2026. Federal + provincial tax, CPP/CPP2, EI, choose any province or territory.

Published

Compute Canadian take-home pay across all provinces and territories.

Net annual take-home

Federal tax

Provincial tax

CPP + CPP2

EI

Your breakdown

Updates live as you type
ItemAmount (CAD)

Worked example

Take an $80,000 salary in Ontario for 2026. Federal tax starts at 15 percent on the first $55,867 and 20.5 percent on the rest, then the Basic Personal Amount ($16,129) is applied as a 15 percent non-refundable credit, leaving about $10,908. Ontario tax runs 5.05 percent to $51,446 and 9.15 percent above, less its own BPA credit, landing near $4,585. CPP takes 5.95 percent of pensionable earnings ($80,000 capped at the $71,300 YMPE, minus the $3,500 exemption) plus CPP2 at 4 percent on the band from $71,300 to $80,000, totalling $4,382. EI is 1.64 percent of insurable earnings up to $64,500, so $1,058. Subtract all four from gross and net take-home is about $59,068, or roughly $4,922 a month.

How it is calculated

The tool layers four deductions on top of gross pay. Federal and provincial income tax are both progressive, so each bracket rate applies only to the income inside that band, not to your whole salary. The Basic Personal Amount is handled as a credit at the lowest bracket rate rather than as a simple deduction, which matches how the CRA actually computes tax payable. CPP has two tiers in 2026: the base 5.95 percent up to the $71,300 ceiling, then CPP2 at 4 percent on earnings between $71,300 and the $81,200 YAMPE. EI is a flat 1.64 percent up to the $64,500 insurable maximum. Quebec is handled separately because it collects QPP, QPIP, and a federal abatement instead of the standard CPP and EI mix.

Frequently asked questions

What is CPP2?
CPP2 (CPP Additional) is a second tier of CPP contributions on earnings between the YMPE ($71,300 in 2026) and YAMPE ($81,200). Employees and employers each contribute 4% on this band.
How is Quebec different from other provinces?
Quebec residents pay QPP instead of CPP and QPIP instead of standard EI, and they receive a 16.5% federal abatement that reduces federal tax. The calculator handles all of these automatically when you select Quebec.
Does the calculator include provincial surtaxes like the Ontario surtax?
Yes. Ontario levies a surtax on top of its basic provincial tax: 20% on Ontario tax above $5,315 and an additional 36% on Ontario tax above $6,802 in 2026. The calculator applies these surtaxes before computing your net pay.
What is the Basic Personal Amount (BPA) and how does it affect my taxes?
The BPA is a non-refundable federal tax credit worth $16,129 in 2026, applied at the 15% lowest bracket rate, which reduces federal tax by up to $2,419. Each province has its own BPA applied at its lowest provincial rate. The calculator applies both credits automatically.

Related calculators

Sources

  1. CRA — Canadian Federal Tax Rates and Income Thresholds 2026, Canada Revenue Agency
  2. CRA — CPP and EI Contribution Rates 2026, Canada Revenue Agency
Embed this calculator on your site (free)

Paste this code into your page. The calculator stays up to date automatically and links back to PennyCompass.

Calculator by PennyCompass