See exactly what you'll earn after federal tax, provincial tax, CPP, and EI — broken down by paycheck. Enter an annual salary or hourly rate.
All 2026 rates — CPP, EI, and provincial tax included.
| Annual | Monthly | Bi-weekly | Weekly |
|---|
| Federal Tax | |
| First bracket (to $58,523) | 14% |
| Second bracket | 20.5% |
| Federal BPA credit | $2,303 |
| CPP 2026 | |
| Employee rate | 5.95% |
| Max earnings (YMPE) | $74,600 |
| Max CPP contribution | $4,230 |
| CPP2 rate (to $85,000) | 4.00% |
| Max CPP2 | $416 |
| Self-employed rate | 11.9% |
| EI 2026 | |
| Employee rate | 1.63% |
| Max earnings | $68,900 |
| Max premium | $1,123 |
| Quebec EI rate | 1.30% |
Every Canadian employee's paycheck has mandatory deductions taken at source by the employer and remitted directly to the CRA. Understanding each deduction helps you see exactly where your money goes — and how to legally reduce what you owe.
Applied to your taxable income in five progressive brackets. The new 14% first bracket (cut from 15%) applies to the first $58,523 in 2026.
Each province and territory has its own brackets on top of federal tax. Alberta is lowest; Nova Scotia and Quebec are highest for most income levels.
Canada Pension Plan contributions build your future retirement income. Employees pay 5.95% on earnings between $3,500 and $74,600. Self-employed pay 11.9%.
Employment Insurance gives you access to income support if you lose your job, get sick, or take parental leave. Capped at $68,900 of earnings ($1,123 max).
Good news about CPP & EI: Both generate a non-refundable federal tax credit at the 14% rate. This means your CPP and EI contributions actually reduce your federal tax bill — partially offsetting the deduction. Our calculator includes these credits for accuracy.
Self-employed Canadians pay both the employee and employer portions of CPP, which means paying 11.9% instead of 5.95% — roughly double. However, the employer-equivalent portion (half of total CPP paid) is tax-deductible as a business expense, which softens the blow. Self-employed Canadians are not required to pay EI, though they may opt in voluntarily to access certain special benefits like maternity/parental leave.
Quebec residents pay into the Quebec Pension Plan (QPP) instead of CPP, at a slightly higher combined rate of 6.3% in 2026. Quebec also administers its own parental insurance plan (QPIP), and residents pay a reduced federal EI rate of 1.30%. Federal income tax for Quebec residents is reduced by 16.5% (the Quebec abatement) because Quebec collects its own provincial income tax directly rather than through the CRA.