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
How much income tax will I pay on $100,000 in Canada?
On a $100,000 salary in Ontario, you'll pay approximately $20,500 in combined federal and provincial income tax, plus CPP and EI contributions totaling around $3,330. Canada uses progressive tax brackets, so your federal rate climbs from 14.5% on the first $57,375 to 20.5% on income up to $114,750, while Ontario's provincial tax ranges from 5.05% to 9.15% depending on your income level.
What is the difference between CPP and EI in Canada?
CPP (Canadian Pension Plan) is a retirement savings contribution of 5.95% on earnings between $3,500 and $68,500, capped at $2,280.90 annually, while EI (Employment Insurance) is 1.66% on earnings up to $63,200, capped at $1,049.12 annually. Both are deducted from your paycheck, though the CPP base contribution is not tax-deductible, while the enhanced CPP portion is fully deductible.
Do tax rates vary by province in Canada?
Yes, Canada has both federal and provincial income taxes, and rates vary significantly by region. This calculator uses Ontario as the default province, which has moderate tax rates, but other provinces like Alberta, British Columbia, and Quebec have different tax brackets and rates. If you're relocating to a different province, your total tax burden will change accordingly.
At what income level do I start paying the highest tax rate?
Federally, you enter the highest income tax bracket of 33% once your income exceeds $253,414. In Ontario, the top provincial rate of 13.16% applies to income above $220,000, and you may also pay a provincial surtax of 20% to 36% on top of your Ontario provincial tax depending on how much provincial tax you owe.
Is there a basic personal amount that reduces my taxes in Canada?
Yes, both the federal government and Ontario provide a Basic Personal Amount (BPA) credit of $339, which lowers your taxable income and reduces your overall tax bill. However, this credit gradually phases out for higher earners, decreasing by 14% (federally) or 5.05% (in Ontario) for every dollar earned above $177,882.
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