Canada pay and tax, 2026
Federal and provincial income tax, the Canada Pension Plan and Employment Insurance — what comes off a Canadian paycheque, and where to calculate yours.
Rules checked against CRA and Revenu Québec on 7 October 2026; not independently reviewed.
- Tax year
- 1 Jan – 31 Dec 2026
- Lowest federal rate
- 14%
- YMPE (CPP ceiling)
- $74,600
- EI maximum insurable
- $68,900
The Canadian tax year
Canada taxes individuals on the calendar year. The 2026 return is due on 30 April of the following year (15 June if you or your spouse are self-employed, though any balance is still due in April). The CRA publishes its payroll formulas, T4127, effective 1 January, and a second edition from 1 July when rates change mid-year, as happened when the lowest federal rate was cut in 2025.
Two governments and two contributions
Income tax is shared. The federal government taxes income in five brackets starting at 14%, and each of the 13 provinces and territories adds its own tax on the same income with its own brackets and credits. Outside Quebec, the CRA collects both on one return; Quebec residents also file with Revenu Québec. On top of income tax, almost every employee pays CPP (or QPP in Quebec) for retirement, with a second tier, CPP2, on earnings between $74,600 and $85,000, and Employment Insurance premiums at 1.63% up to $68,900 of insurable earnings. Quebec adds QPIP for parental benefits and charges a lower EI rate.
What our calculator covers
The Canada take-home pay calculator includes every province and territory, the Ontario surtax and Health Premium, Quebec’s QPP, QPIP and abatement, CPP2, and the effect of RPP, RRSP and union dues. It works out the tax owed for the year with the basic credits every employee gets. TD1 claim codes, bonuses and other income are outside its scope; the tool lists everything it leaves out.
Key figures for 2026
- Federal basic personal amount: up to $16,452, reduced for incomes above $181,440.
- Maximum CPP contribution: $4,230.45, plus up to $416.00 of CPP2.
- Maximum EI premium: $1,123.07 ($895.70 in Quebec).
- Canada employment amount: $1,501.
Primary source: CRA T4127 Payroll Deductions Formulas, 122nd edition, effective 1 January 2026. Every federal and provincial parameter is listed on the 2026 rates page; the 2025 page shows the year before.
Using the numbers
Your paycheque withholding can differ from the annual figure because of TD1 claims, irregular pay or the January/July payroll editions; the difference is settled when you file. Provincial pages for each province are planned once they meet our publishing standard. Meanwhile, compare Canada with other countries on the take-home pay hub.