Paycheck Calculator Canada

Canadian income tax uses progressive brackets. Federal tax applies to all Canadians, then each province adds its own provincial tax on top. CPP (Canada Pension Plan) and EI (Employment Insurance) are also deducted from each paycheck.

CPP (Canada Pension Plan) is a mandatory retirement savings program. In 2026, employees contribute 5.95% of pensionable earnings (between $3,500 and ~$73,200). The maximum annual CPP contribution is approximately $4,034.

EI (Employment Insurance) provides temporary income support when you're unemployed. The 2026 employee premium rate is 1.64% of insurable earnings up to approximately $65,700, for a maximum annual premium of ~$1,078.

This calculator is primarily designed for T4 employees. Self-employed individuals pay both the employee and employer portions of CPP (11.9% total) and have different deduction rules. Use this as a rough estimate only for self-employment income.

Alberta has no provincial income tax on lower incomes and no provincial sales tax, making it one of the lowest-tax provinces. Quebec and Nova Scotia have higher provincial tax rates. Ontario falls in the middle range.