Guide
Canada take-home pay 2026: federal tax, CPP, CPP2 and EI
A Canadian job offer is almost always a gross figure. Take-home pay is what remains after federal income tax, provincial tax, employee CPP (and CPP2 when earnings cross the second ceiling), and EI premiums. This companion guide covers tax year 2026 for one employment salary in Ontario, British Columbia or Alberta. Quebec is out of scope.
This is general education, not tax advice. Parameters were checked on 2026-10-23 against CRA rate pages and the live Canada take-home calculator.
What is deducted in 2026?
| Deduction | 2026 rule (employee) | Notes |
|---|---|---|
| Federal income tax | 14% / 20.5% / 26% / 29% / 33% | Brackets to CA$58,523 / 117,045 / 181,440 / 258,482 |
| Federal basic personal amount | up to CA$16,452 | Tapers toward CA$14,829 between CA$181,440 and CA$258,482 of net income |
| Canada employment amount | up to CA$1,501 | Non-refundable credit base in the tool’s method |
| Provincial tax | province schedule | ON / BC / AB only in the calculator |
| CPP | 5.95% | After CA$3,500 exemption; max CA$4,230.45 at YMPE CA$74,600 |
| CPP2 | 4% | On earnings from CA$74,600 to YAMPE CA$85,000; max CA$416 |
| EI (outside Quebec) | 1.63% | Max CA$1,123.07 at MIE CA$68,900 |
Take-home (this model) ≈ gross − federal tax − provincial tax − CPP − CPP2 − EI
Enhanced CPP portions and other credits follow the calculator’s documented method; the page lists simplifications (no Quebec, year-end liability style, one job).
Worked example: Ontario CA$60,000 (CA-03)
| Item | Amount (CA$) |
|---|---|
| Gross salary | 60,000.00 |
| Federal income tax | 5,338.29 |
| Ontario provincial tax | 2,982.20 |
| CPP | 3,361.75 |
| CPP2 | 0.00 |
| EI | 978.00 |
| Net annual | 47,339.76 |
| Approx. monthly | ≈ 3,944.98 |
| Effective deduction rate | ≈ 21.10% |
CPP on CA$60,000: (60,000 − 3,500) × 5.95% = 3,361.75. EI: 60,000 × 1.63% = 978.00. CPP2 is zero because earnings are below the YMPE.
Same gross in other modelled provinces (verified cases):
| Province | Net annual (CA$60,000) |
|---|---|
| Ontario | 47,339.76 |
| British Columbia | 47,754.57 |
| Alberta | 47,690.66 |
When CPP2 appears
Once pensionable earnings pass the YMPE (CA$74,600), CPP2 at 4% applies up to the YAMPE (CA$85,000). Verified Ontario checkpoints:
| Gross | CPP | CPP2 | Net (ON) |
|---|---|---|---|
| 74,600 | 4,230.45 | 0.00 | 56,655.68 |
| 80,000 | 4,230.45 | 216.00 | 60,302.62 |
| 85,000 | 4,230.45 | 416.00 | 63,679.42 |
What the calculator leaves out
- Quebec tax and QPP / Quebec Parental Insurance Plan.
- Multiple jobs, bonuses with different withholding, RRSP withholding quirks mid-year.
- Non-refundable credits beyond the modelled basic personal amounts, CEA and CPP/EI credit bases used on the page.
- Payroll rounding that differs from the year-end liability view.
Run your own gross in the Canada take-home calculator. Canada tools also sit on the site’s region pages when published.
Sources (primary)
- CRA, Current year tax rates and income brackets (2026)
- CRA, CPP contribution rates, maximums and exemptions
- CRA, EI premium rates and maximums
- CRA, Payroll Deductions Formulas — 122nd edition effective 1 January 2026 (T4127)
Checked: 2026-10-23. Educational estimate only — not tax advice.