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 |
|---|---|---|
| Lowest Rate | CA$0 - CA$57,375 | 14.5% |
| Second Bracket | CA$57,375 - CA$114,750 | 20.5% |
| Third Bracket | CA$114,750 - CA$177,882 | 26.0% |
| Fourth Bracket | CA$177,882 - CA$253,414 | 29.0% |
| Highest Rate | CA$253,414+ | 33.0% |
Tax credit: CA$2,339
Ontario Provincial Tax
| Bracket | Income Range | Rate |
|---|---|---|
| First Bracket | CA$0 - CA$52,886 | 5.1% |
| Second Bracket | CA$52,886 - CA$105,775 | 9.2% |
| Third Bracket | CA$105,775 - CA$150,000 | 11.2% |
| Fourth Bracket | CA$150,000 - CA$220,000 | 12.2% |
| Highest Bracket | CA$220,000+ | 13.2% |
State tax credit: CA$644
Ontario Health Premium
| Bracket | Income Range | Rate |
|---|---|---|
| Maximum Premium Threshold | CA$200,000+ | 0.0% |
Canada Pension Plan (CPP) Base
| Bracket | Income Range | Rate |
|---|---|---|
| Base Contribution | CA$3,500 - CA$71,300 | 5.9% |
Capped at CA$4,034 per year
Canada Pension Plan (CPP2)
| Bracket | Income Range | Rate |
|---|---|---|
| Second Additional Contribution | CA$71,300 - CA$81,200 | 4.0% |
Capped at CA$396 per year
Employment Insurance (EI)
| Bracket | Income Range | Rate |
|---|---|---|
| EI Premium | CA$0+ | 1.6% |
Capped at CA$1,077 per year
Ontario Surtax 1
| Bracket | Income Range | Rate |
|---|---|---|
| First Surtax | CA$0+ | 20.0% |
Applies when tax liability exceeds CA$5,710
Ontario Surtax 2
| Bracket | Income Range | Rate |
|---|---|---|
| Second Surtax | CA$0+ | 36.0% |
Applies when tax liability exceeds CA$7,307
Key Facts
Tax Year
2025
Currency
CAD
Top Rate
33.0%
Brackets
5 brackets
Tax Credit
CA$2,339
Social Contributions
3 items
Assumptions
- · Ontario used as the representative sub-national region.
- · 2025 federal PIT rates reflect the Canada Revenue Agency payroll tables effective July 1, 2025, with a full-year lowest rate of 14.5%.
- · Federal basic personal credit is indexed and tapered based on income, from CAD 2,338.705 at or below CAD 177,882 to CAD 2,108.01 above CAD 253,414.
- · Canada Employment Amount credit (max 213) is excluded from the relief object but typically applies to employees.
- · CPP and EI contributions are based on 2025 CRA limits; CPP is split into base CPP and CPP2 so the second additional contribution only applies between CAD 71,300 and CAD 81,200.
- · Ontario sub-national brackets, surtax thresholds, and basic personal credit use the 2025 CRA payroll tables.
Frequently asked questions
How much income tax will I pay in Canada as an employee?
Canada has a progressive federal income tax system with 5 brackets ranging from 14.5% on your first CAD 57,375 of income up to 33% on income above CAD 253,414. If you're in Ontario, you'll also pay provincial tax on top of the federal rate, with Ontario brackets ranging from 5.05% to 13.16% depending on your income level. You'll receive a federal basic personal credit of around CAD 2,339 and an Ontario provincial credit of CAD 626 to reduce your overall tax burden.
What are CPP and EI contributions in Canada?
As an employee, you contribute to the Canada Pension Plan (CPP) at a rate of 5.95% on earnings between CAD 3,500 and a maximum contribution of CAD 4,430.10, and these contributions are tax-deductible. You also pay Employment Insurance (EI) at 1.66% of your gross income, capped at CAD 1,077.48 annually, though EI is not tax-deductible. Together, these social contributions are automatically deducted from your paycheck and fund Canada's retirement and unemployment insurance programs.
Do I pay provincial tax in Canada, and does it vary by province?
Yes, Canada has both federal and provincial income taxes, and rates vary significantly by province. This calculator uses Ontario as the representative province, but if you're considering relocating to another province, your provincial tax rate could be substantially different. Ontario's provincial tax ranges from 5.05% to 13.16% across its brackets, and some provinces have lower or higher rates, so it's worth checking your specific province's rates before making a move.
What is the Ontario Health Premium and when do I pay it?
The Ontario Health Premium is a flat annual charge of CAD 900 for employees in Ontario, though it phases out for higher earners and does not apply once your income exceeds CAD 200,000. This is a provincial levy separate from income tax and is automatically withheld from your paycheck. The premium helps fund Ontario's healthcare system.
How much will I actually take home after taxes and deductions?
Your take-home pay depends on your gross income, which is taxed through multiple layers: federal income tax (14.5% to 33%), Ontario provincial tax (5.05% to 13.16%), CPP contributions (5.95%), and EI premiums (1.66%). You'll also potentially pay Ontario surtaxes and the health premium if applicable. Use the calculator above with your specific income to see your exact take-home amount, as the interaction of all these taxes and credits creates different effective rates at different income levels.
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