Canada Tax Calculator (2026)
Income tax rates and take-home pay for Canada
Using Ontario for state/regional taxes. Region selection coming soon.
Canada Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Federal bracket 1 | CA$0 - CA$57,375 | 14.5% |
| Federal bracket 2 | CA$57,375 - CA$114,750 | 20.5% |
| Federal bracket 3 | CA$114,750 - CA$177,882 | 26.0% |
| Federal bracket 4 | CA$177,882 - CA$253,414 | 29.0% |
| Federal bracket 5 | CA$253,414+ | 33.0% |
Tax credit: CA$339
Ontario Provincial Income Tax
| Bracket | Income Range | Rate |
|---|---|---|
| Ontario bracket 1 | CA$0 - CA$51,446 | 5.1% |
| Ontario bracket 2 | CA$51,446 - CA$102,894 | 9.2% |
| Ontario bracket 3 | CA$102,894 - CA$150,000 | 11.2% |
| Ontario bracket 4 | CA$150,000 - CA$220,000 | 12.2% |
| Ontario bracket 5 | CA$220,000+ | 13.2% |
State tax credit: CA$339
Canadian Pension Plan (CPP) - Base portion
| Bracket | Income Range | Rate |
|---|---|---|
| CPP base rate | CA$3,500 - CA$68,500 | 5.9% |
Capped at CA$2,281 per year
Employment Insurance (EI)
| Bracket | Income Range | Rate |
|---|---|---|
| EI rate | CA$0 - CA$63,200 | 1.7% |
Capped at CA$1,049 per year
Ontario Provincial Surtax
| Bracket | Income Range | Rate |
|---|---|---|
| Ontario surtax bracket 1 | CA$5,710 - CA$7,307 | 20.0% |
| Ontario surtax bracket 2 | CA$7,307+ | 36.0% |
Applies when tax liability exceeds CA$5,710
Key Facts
Tax Year
2025
Currency
CAD
Top Rate
33.0%
Brackets
5 brackets
Tax Credit
CA$339
Social Contributions
2 items
Assumptions
- · Representative model using Ontario as typical Canadian province with moderate tax rates.
- · Federal and Ontario provincial tax brackets applied.
- · Ontario surtax included (20% on provincial tax above 5,710 CAD and 36% above 7,307 CAD).
- · Canadian Pension Plan (CPP) and Employment Insurance (EI) modeled as separate employee contributions, partially deductible.
- · CPP base credit of 14.5% included; enhanced CPP portion is fully deductible.
- · Basic personal amount (BPA) applied as federal and Ontario tax credits, income-tested above 177,882 CAD.
- · No alternative minimum tax, kiddie tax, or income sprinkling considerations modeled.
- · No Quebec-specific adjustments; full federal tax applies (no 16.5% reduction).
- · Consumption taxes (GST, HST, PST, QST) excluded as they do not apply to employment income.
- · Property taxes, luxury taxes, excise duties excluded.
- · Medical expenses, tuition, donations, and other itemized credits excluded for representative employee model.
Frequently asked questions
How much income tax will I pay in Canada if I work in Ontario?
Canada has a progressive federal tax system with 5 income tax brackets ranging from 14.5% to 33%, plus Ontario provincial tax brackets ranging from 5.05% to 13.16%. Your total tax depends on your income level; for example, someone earning 60,000 CAD would pay approximately 14.5% federal tax on the first 57,375 CAD and 20.5% on the remainder, plus Ontario provincial tax. Note that tax rates vary significantly by province, so if you relocate to a different province, your total tax burden will change.
What are CPP and EI, and how much do I contribute as an employee?
CPP (Canadian Pension Plan) and EI (Employment Insurance) are mandatory social contributions deducted from your paycheck. As an employee, you contribute 5.95% of earnings between 3,500 and 68,500 CAD to CPP (capped at 2,280.90 CAD), and 1.66% of earnings up to 63,200 CAD to EI (capped at 1,049.12 CAD). These contributions are not tax-deductible from your income, though you do receive a small tax credit for the CPP base portion.
Do I get any tax breaks or credits in Canada?
Yes, Canada offers a Basic Personal Amount (BPA) credit that reduces your federal and provincial tax liability; this credit phases out for higher earners above 177,882 CAD. Additionally, you receive a tax credit for your CPP base contributions, which provides a small offset to your overall tax bill. Other credits like tuition, medical expenses, and charitable donations are available but depend on your individual circumstances.
What is the Ontario surtax and how does it affect my take-home pay?
Ontario applies a surtax on top of provincial income tax: 20% on provincial tax between 5,710 and 7,307 CAD, and 36% on provincial tax above 7,307 CAD. This means higher earners in Ontario pay an additional layer of tax beyond the standard provincial brackets, so your effective tax rate increases as your income grows. This surtax is one reason why Ontario's total tax burden can be significant for higher-income earners.
How much of my salary will I actually take home after all taxes and contributions?
Your take-home pay depends on your gross income and is reduced by federal income tax, Ontario provincial tax, Ontario surtax, CPP contributions, and EI contributions. For example, someone earning 75,000 CAD in Ontario might take home around 53,000-55,000 CAD after all deductions, though the exact amount depends on your specific situation and whether you qualify for any additional credits. You can use a take-home pay calculator to estimate your net income based on your expected salary.
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