How the calculation works

2026 tax year · tables verified 2026-09-20

The model in one paragraph

We start from your gross employment income, subtract the deductible portion of your pension contributions (the extra 1% CPP/QPP and CPP2/QPP2), then apply the 2026 federal and provincial tax brackets. Non-refundable credits — the basic personal amount, base CPP/QPP, EI, QPIP (federal, Quebec only) and the $1,501 Canada Employment Amount — are applied at each jurisdiction's lowest tax rate. Quebec gets the 16.5% federal abatement; Ontario adds its surtax and health premium.

Payroll deductions (2026)

CPP: 5.95% on earnings between $3,500 and $74,600, plus 4% CPP2 between $74,600 and $85,000. QPP: 6.30% on the same band, plus 4% QPP2. EI: 1.63% to $68,900 ($1,123.07 max), or 1.30% in Quebec ($895.70 max). QPIP: 0.430% to $103,000 ($442.90 max). Only the base pension rate earns a tax credit — the rest reduces taxable income directly.

What we don't cover

Rental or investment income, RRSP deductions, union dues, pension adjustments, taxable benefits, and personal credits beyond the basic amount (dependants, medical, tuition, disability). Results are an estimate for planning — your employer's payroll software and your T1 may differ slightly.

Privacy

On your first visit, the homepage guesses your province from your IP address (one lookup, via ipapi.co) so you don't have to pick it — nothing is stored on our servers. Your province choice is remembered in your own browser only. Salary figures never leave your device except inside links you choose to copy and share.

How we verify

Our engine reproduces published 2026 worked examples to the dollar (e.g. $100,000 in Ontario → $74,206 take-home). Tables were last verified 2026-09-20 against CRA, KPMG and Revenu Québec sources, and 32 automated tests re-check every figure on each build.

Quebec notes

Quebec figures include QPP, Quebec-rate EI and QPIP, plus the 16.5% federal abatement. Employee QPIP premiums earn the federal credit; Quebec's high-income phase-out of the provincial basic personal amount is not yet modeled (immaterial under ~$150K).

After Tax Canada is an estimate tool, not tax advice. For complex situations consult a tax professional.