Federal and provincial income tax, CPP and CPP2, EI and — in Quebec — QPP and QPIP, for all 13 provinces and territories, with each step linked to the CRA or Revenu Québec source.
Rules checked against CRA and Revenu Québec on ; not independently reviewed. Changelog Report an error
Take-home pay per monthExample
$4,482.19
$53,786.26 a year · from $70,000.00 gross
Same pay in tax year 2025: $53,468.67 a year — $317.59 more in 2026.
| Item | Per month | Per year |
|---|---|---|
| Gross pay | $5,833.33 | $70,000.00 |
| Federal income tax | −$606.52 | −$7,278.19 |
| Ontario income tax | −$271.31 | −$3,255.73 |
| Ontario Health Premium | −$50.00 | −$600.00 |
| Canada Pension Plan (CPP) | −$329.73 | −$3,956.75 |
| CPP2 (second additional CPP) | $0.00 | $0.00 |
| Employment Insurance (EI) | −$93.59 | −$1,123.07 |
| Take-home pay | $4,482.19 | $53,786.26 |
Compare two scenarios. Save this result as scenario A, then change any input to see the difference.
Assumptions
Rules ca-2026-r1+ca-on-2026-r1 · checked against CRA and Revenu Québec on · not independently reviewed · 2026 rates and sources
Annual tax and contributions for the calendar year; payroll withholding follows your TD1 and can differ.
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Estimates for general information only — not financial, tax or legal advice. Your actual figures depend on your employer’s payroll, your full tax situation, your lender’s or bank’s terms and rules we may not model. Check official sources and speak to a qualified adviser before making decisions. Annual liability; your payroll withholding follows your TD1 forms. Disclaimer
Generated by the engine with 2026 rules and default credits.
Ontario
| Gross pay | $70,000.00 |
|---|---|
| Federal income tax | −$7,278.19 |
| Ontario income tax | −$3,255.73 |
| Ontario Health Premium | −$600.00 |
| Canada Pension Plan (CPP) | −$3,956.75 |
| Employment Insurance (EI) | −$1,123.07 |
| Take-home pay | $53,786.26 |
Average rate 23.2% · marginal rate 34.4%
Quebec
| Gross pay | $70,000.00 |
|---|---|
| Federal income tax | −$6,041.47 |
| Quebec income tax (Revenu Québec) | −$7,527.62 |
| Quebec Pension Plan (QPP) | −$4,189.50 |
| Employment Insurance (Quebec rate) | −$895.70 |
| Quebec Parental Insurance Plan (QPIP) | −$301.00 |
| Take-home pay | $51,044.71 |
Average rate 27.1% · marginal rate 41.8%
Alberta
| Gross pay | $120,000.00 |
|---|---|
| Federal income tax | −$17,502.14 |
| Alberta income tax | −$8,470.38 |
| Canada Pension Plan (CPP) | −$4,230.45 |
| CPP2 (second additional CPP) | −$416.00 |
| Employment Insurance (EI) | −$1,123.07 |
| Take-home pay | $88,257.96 |
Average rate 26.5% · marginal rate 36.0%
Federal income tax is $7,278.19 in Ontario but only $6,041.47 in Quebec. That is mostly the 16.5% Quebec abatement — compensation for Quebec running programs the federal government funds elsewhere — not lower federal rates. Provincial tax goes the other way: $3,855.73 in Ontario including the Health Premium, against $7,527.62 of Quebec income tax.
Payroll contributions differ as well. The Ontario card shows CPP and EI; the Quebec card shows QPP at a higher rate, QPIP, and EI at Quebec’s reduced rate. At $70,000 neither worker reaches CPP2, which starts only above $74,600; the Alberta card at $120,000 does, and also hits the CPP and EI maximums.
Annual liability, in the order of the T1 return, with the matching step under Show working.
5.95% of earnings between the $3,500 basic exemption and the YMPE ($74,600), to a maximum of $4,230.45. The base part earns a credit; the enhanced part is deducted from income.
CRA T4127 Payroll Deductions Formulas, 122nd edition, effective 1 January 20264% of earnings from the YMPE to the YAMPE ($85,000), deducted from income.
EI at 1.63% on insurable earnings up to $68,900 (maximum $1,123.07); in Quebec, EI at 1.3% plus QPIP at 0.43% up to $103,000.
CRA T4127 Payroll Deductions Formulas, 122nd edition, effective 1 January 2026Gross pay minus RPP and RRSP contributions, union dues and the enhanced CPP or QPP deductions.
Five brackets from 14% to 33%, less non-refundable credits at 14%: the basic personal amount (up to $16,452), the Canada employment amount ($1,501) and base CPP/QPP, EI and QPIP. Quebec residents then deduct the abatement.
CRA T4127 Payroll Deductions Formulas, 122nd edition, effective 1 January 2026The province’s own brackets and credits, plus surtaxes, reductions and premiums held in its rules file (Ontario surtax and Health Premium, BC tax reduction and others).
Gross minus tax, contributions, pension and dues, divided by 52 weeks, 26 bi-weekly pays, 24 semi-monthly pays or 12 months.
Full-year values used for the annual return.
| 2026 rate | 2026 up to | 2025 rate | 2025 up to |
|---|---|---|---|
| 14% | $58,523 | 14.5% | $57,375 |
| 20.5% | $117,045 | 20.5% | $114,750 |
| 26% | $181,440 | 26% | $177,882 |
| 29% | $258,482 | 29% | $253,414 |
| 33% | no limit | 33% | no limit |
| Item | 2026 | 2025 |
|---|---|---|
| Basic personal amount (max) | $16,452 | $16,129 |
| YMPE / YAMPE | $74,600 / $85,000 | $71,300 / $81,200 |
| CPP maximum (base + first additional) | $4,230.45 | $4,034.10 |
| CPP2 maximum | $416.00 | $396.00 |
| EI rate / maximum insurable | 1.63% / $68,900 | 1.64% / $65,700 |
| EI rate in Quebec | 1.3% | 1.31% |
| QPIP employee rate | 0.43% | 0.49% |
Every province and territory except Quebec has its income tax collected by the CRA on the same T1 return, using its own brackets, credit rate and basic personal amount. Ontario’s surtax and Health Premium, British Columbia’s tax reduction and Alberta’s supplemental credit all come from the province’s own rules file. Quebec residents file a separate TP-1 return with Revenu Québec, which is why Quebec has its own rules file here.
Most Canadian employers pay bi-weekly (26 pays) or semi-monthly (24). The CRA publishes payroll formulas (T4127) in January and, when rates change, again in July, so withholding can shift halfway through the year. The calculator works on the full-year rules used for your return, so it shows the tax you actually owe rather than the amount withheld in a particular month.
Because CPP, CPP2 and EI have annual maximums, higher earners see their paycheques rise once the year’s contributions are complete — often in the autumn. The annual figures here already include the cap; a single month’s payslip may show more or less.
Tuition, medical expenses, charitable donations, the disability amount and spousal credits all reduce tax but depend on your circumstances, so they are left out. If you claim them on your TD1, your withholding will be lower than this calculator suggests, and the refund on your return smaller.
CPP2 is the second additional Canada Pension Plan contribution, introduced in 2024. On top of regular CPP at 5.95% on earnings up to the YMPE ($74,600 in 2026), you pay 4% on earnings between the YMPE and the YAMPE ($85,000), up to $416.00 a year. CPP2 is deductible from income rather than a credit, and your employer matches it.
Quebec runs its own pension plan (QPP, at 6.3% on the same earnings range), its own parental insurance (QPIP, 0.43%), and a lower EI rate (1.3%) because QPIP replaces EI parental benefits. Quebec income tax is collected by Revenu Québec, and Quebec residents get a 16.5% abatement off basic federal tax. On $70,000 the net effect in our example is $2,741.55 less take-home pay than in Ontario.
Your TD1 forms tell your employer which credits to apply when withholding tax from each pay. This calculator works out the tax for the year using the basic personal amount and the credits every employee gets (CPP or QPP, EI, the Canada employment amount). If you claim extra credits on your TD1, less is withheld; any difference is settled on your return.
RRSP contributions are deducted from taxable income, so they save tax at your marginal rate. In Ontario on $70,000, a $5,000 contribution cuts income tax and the Ontario Health Premium by $1,482.50 for the year. CPP and EI are not reduced. Payroll RRSP deductions lower tax at source; lump-sum contributions come back as a refund.
The lowest federal bracket rate fell from 15% to 14% on 1 July 2025. For the 2025 return the CRA uses a blended full-year rate of 14.5%, which is what this calculator applies for 2025. From 2026 the full-year rate is 14%. Payroll used 15% before July and 14% after, so 2025 paycheques and the annual liability differ slightly.
Ontario residents with taxable income over $20,000 pay a health premium through the tax system, rising in steps to a maximum of $900. It is separate from Ontario income tax and appears as its own line in the breakdown. Ontario also adds a surtax when basic provincial tax exceeds $5,818.
No. Disposing of crypto is usually a capital gain (or business income), which this payroll calculator does not cover. CryptoTaxOwl’s Canada crypto tax calculator works that out from your exchange files.
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Rules ca-2026-r1+ca-on-2026-r1, checked against CRA and Revenu Québec publications on 7 October 2026. MoneyOtter has not had these rules independently reviewed by a tax professional; they are tested against official worked examples and an independent re-implementation. Page reviewed 8 October 2026 · How countries are verified · Changelog · Report an error