How this calculator works
Enter gross employment income and choose a province or territory. The page takes the 2026 federal and provincial income tax from the same bracket tables and basic personal amounts used on the Canadian income tax page, then subtracts the employee CPP contribution of 5.95% on earnings between $3,500 and $74,600, CPP2 of 4% on earnings between $74,600 and $85,000, and the EI premium of 1.63% on insurable earnings up to $68,900. The result is an estimate of annual take-home pay and of the amount left from an average month. It assumes one employer, no other income and the standard basic personal amount only. Out of scope: the Canada Employment Amount, the federal and provincial credits for CPP and EI contributions, the Quebec abatement, any RRSP or union dues deduction, the Canada Workers Benefit and every other benefit, and Quebec, which files its own return and has its own page. Because the CPP and EI credits are left out, the tax shown is slightly higher than a payroll program would withhold, and net pay is slightly lower.
Formula
CPP = 5.95% x max(0, min(income, $74,600) - $3,500). CPP2 = 4% x max(0, min(income, $85,000) - $74,600). EI = 1.63% x min(income, $68,900). Total deductions = federal tax + provincial tax + CPP + CPP2 + EI. Net pay = income - total deductions.
Worked example
On $85,000 in Ontario, federal tax is $11,317.73 and Ontario tax is $4,912.02. CPP is $71,100 x 5.95%, or $4,230.45; CPP2 is $10,400 x 4%, or $416.00; and EI is $68,900 x 1.63%, or $1,123.07. Total deductions are $21,999.27, leaving $63,000.73 for the year, or $5,250.06 a month. Deductions take 25.88% of gross pay.
Frequently asked questions
Why is net pay lower than a payroll calculator shows?
This page applies only the basic personal amount. It does not apply the Canada Employment Amount or the federal and provincial credits for CPP and EI contributions, which reduce the tax a payroll program withholds.
Does CPP2 apply to everyone?
CPP2 applies to earnings above the 2026 Year's Maximum Pensionable Earnings of $74,600 and up to $85,000. Someone earning below $74,600 pays no CPP2.
Why is Quebec missing?
Quebec administers its own income tax and has the Quebec Pension Plan and the Quebec Parental Insurance Plan instead of CPP and the federal parental portion of EI. The Quebec income tax page covers those deductions.
Is this the amount deposited every payday?
It is an annual average. A pay period can differ because of bonus timing, benefit premiums, garnishments and the point in the year when CPP and EI maximums are reached.