Salary & Take-Home Pay · Canada
Salary & Take-Home Pay Calculator (Canada, 2026)
Estimate your annual take-home pay from a 2026 salary, before selected credits. Enter your gross employment income and your province or territory, and the calculator subtracts federal and provincial income tax (with the CPP and EI credits, and, for Ontario, the Ontario Health Premium included in Ontario income tax), your Canada Pension Plan (CPP) and second additional CPP (CPP2) contributions, and Employment Insurance (EI), then shows your net take-home pay, your average rate, and your next-dollar withholding rate. It is a close estimate for a salaried (T4) employee, not a filed return.
Last verified: Effective for 2026 tax year by Fiscal Moose
- CPP maximum
- $4,230.45
- CPP2 maximum
- $416.00
- EI maximum
- $1,123.07
Your income
Your take-home pay
- Your estimated take-home pay
- $66,986.78
Default example assumes Ontario. Choose your province or territory above for your actual result.
- Income tax (federal + Ontario)
- $17,243.70
- CPP contribution
- $4,230.45
- CPP2 (second additional)
- $416.00
- EI premium
- $1,123.07
- Average tax rate
- 19.16%
- Next-dollar withholding rate
- 29.65%
Includes a second additional CPP (CPP2) contribution of $416.00 on earnings above the first ceiling (the YMPE).
Show how your take-home pay is built
| Component | Amount |
|---|---|
| Gross employment income | $90,000.00 |
| Federal income tax | −$11,461.74 |
| Ontario income tax (incl. Health Premium) | −$5,781.96 |
| of which Ontario Health Premium | $750.00 |
| CPP contribution | −$4,230.45 |
| CPP2 (second additional) | −$416.00 |
| EI premium | −$1,123.07 |
| Net take-home pay | $66,986.78 |
What this estimates, and what it does not
This calculator is for a salaried (T4) employee. It applies the 2026 income tax brackets, the Basic Personal Amount, and the CPP and EI non-refundable credits, then the actual CPP, CPP2, and EI deductions. It does not model self-employment (where CPP is paid at double the rate and EI is optional), RRSP or union-dues deductions, or the Canada Employment Amount, so it is a close estimate of your net pay, not a filed return. For Ontario it does include the Ontario Health Premium (it is part of Ontario income tax); other provinces’ health levies are not modelled. Quebec is administered separately (QPP, QPIP, and a 16.5% federal abatement) and is coming in a later update. If you want tax on taxable income without payroll deductions, use the income tax calculator; if you are realizing a capital gain, see the capital gains tax calculator; both build on the same bracket engine as this tool.
How CPP, CPP2, and EI work in 2026
You pay CPP at 5.95% on your earnings between the $3,500 basic exemption and the first ceiling (the YMPE, $74,600), capping at $4,230.45. Above the YMPE, a second contribution (CPP2) of 4% applies only to the band between the YMPE and the YAMPE ($85,000), capping at $416.00. This is a genuine two-tier system: CPP2 is not a flat extra rate on all income. EI is 1.63% on your insurable earnings up to $68,900, capping at $1,123.07.
Marginal vs average rate
Your average rate is your total income tax divided by your salary. Your next-dollar withholding rate is how much of your next dollar is withheld (so the rest is what you keep before any unmodelled deductions or credits); it can actually drop once your income passes a CPP or EI ceiling (those contributions stop), and it includes the CPP2 band and any provincial surtax. That is why a raise above a ceiling can feel like it lands more than expected.
2026 CPP, CPP2, and EI limits
These are the 2026 payroll-deduction parameters the calculator applies, published by the Canada Revenue Agency. They reset every January.
| Parameter | 2026 value |
|---|---|
| CPP: Year’s Maximum Pensionable Earnings (YMPE) | $74,600 |
| CPP: basic exemption | $3,500 |
| CPP: employee rate | 5.95% |
| CPP: maximum employee contribution | $4,230.45 |
| CPP2: Year’s Additional Maximum Pensionable Earnings (YAMPE) | $85,000 |
| CPP2: employee rate (on the YMPE→YAMPE band) | 4% |
| CPP2: maximum employee contribution | $416.00 |
| EI: maximum insurable earnings | $68,900 |
| EI: employee premium rate | 1.63% |
| EI: maximum employee premium | $1,123.07 |
Sources and methodology
Sources
- Canada Revenue Agency: CPP contribution rates/maximums/exemptions + CPP2 rates/maximums + EI premium rates/maximums (2026)
- Canada Revenue Agency: 2026 federal income tax brackets (combined-rates page)
- Canada Revenue Agency: T4032-ON (2026 Ontario brackets, surtax, and the Ontario Health Premium schedule)
Known limitations
- Covers the 2026 tax year only; other years are added as CRA publishes them.
- Quebec is not yet supported. Quebec uses the Quebec Pension Plan (QPP), the Quebec Parental Insurance Plan (QPIP), a lower EI rate, and a 16.5% federal abatement, administered separately by Revenu Québec.
- For salaried (T4) employees only. Self-employment (CPP at double the rate, EI optional) is not modelled.
- Models income tax with the Basic Personal Amount + the CPP and EI credits only. It does not apply the Canada Employment Amount, RRSP or union-dues deductions, the age/pension amounts, or dividend/medical/donation credits, so your actual net pay may be slightly higher.
- For Ontario, the Ontario Health Premium IS deducted (a tiered $0–$900 part of Ontario income tax, normally withheld from pay). It is computed on taxable employment income; split-income adjustments are out of scope. Other provincial health levies are not modelled.
- The federal/Yukon Basic Personal Amount phase-out uses gross employment income as the net-income basis (the closest available proxy before the line-22215 enhanced-CPP deduction). The dollar impact is small (a few dollars at most).
- Does not include the Alternative Minimum Tax or employer-side contributions.
- Assumes a single employer for the full year; it does not model CPP/EI overpayment recovery across multiple employers or a partial year of employment.