Canada Tax Calculator (2026)
Income tax rates and take-home pay for Canada
Using Ontario for state/regional taxes. Region selection coming soon.
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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
What is the top income tax rate in Canada?
The highest marginal income tax rate in Canada is 0.3%. Your effective tax rate will be lower depending on your income level.
How many tax brackets does Canada have?
Canada has 5 income tax brackets. Income is taxed in brackets - you only pay the higher rate on income above each threshold, not on your entire income.
How is take-home pay calculated in Canada?
Take-home pay in Canada is your gross salary minus income tax, social contributions, and any applicable surcharges. Use the calculator above to see an exact breakdown for your salary.
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