After Tax Canada / Retirement income taxVersion française
Retirement income tax calculator (2026)
Pension and RRIF income is taxable, but it does not attract CPP or EI, so a salary calculator overstates what a retiree keeps. Enter your pension income and other taxable income to see the income tax on the pension portion in every province.
Ontario · 2026
$36,734$36,734 kept from $45,000 of retirement income
You keep 81.6% of the retirement income · $3,061 a month
Tax on the retirement income
| Federal tax | $5,338 |
| Provincial tax | $2,928 |
| Total income tax on the retirement income | $8,266 |
| You keep | $36,734 |
Retirement income is added to your other taxable income and taxed at the marginal rates that apply above it. It does not attract CPP/QPP, EI or QPIP contributions, so this calculator shows income tax only, unlike the main salary calculator. The basic credits are counted once, against your combined income.
How retirement income is taxed
The calculator compares your income tax with and without the pension portion, using the 2026 brackets and credits. These are annual figures. It does not model the pension income amount or the age amount, so some retirees may owe less than shown. The calculation also reflects payroll-linked credits computed at your combined income, so if none of your income is employment income, your tax could be higher than shown. Pension payers also withhold tax from each payment, and any over-withholding comes back when you file your tax return.
Make your take-home work harder
Your paycheque is only half the story. These are the account types Canadians use to put after-tax money to work. What follows is factual information, not financial advice.
High-interest savings account
A savings account that pays a higher rate than a chequing account. Money stays liquid and earns interest while you keep it.
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Investment account
An account for buying investments such as ETFs and stocks. It can be registered (TFSA, RRSP, FHSA) or non-registered.
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Bank account
A chequing account for daily spending and bill payments, often bundled with savings and credit products.
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We are reviewing Canadian providers. When offers appear here, they will be clearly labelled.
Disclosure: if partner offers are listed here in the future, they will be clearly labelled, and we may earn a commission. Account descriptions are factual information, not financial advice.
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Worked examples, retirement income in 2026
| Pension and other income | Income tax on the pension | You keep | Keep rate |
|---|---|---|---|
| $45,000 pension · $15,000 other · ON | $8,266 | $36,734 | 81.6% |
| $45,000 pension · $15,000 other · QC | $9,821 | $35,179 | 78.2% |
| $30,000 pension · $10,000 other · BC | $4,033 | $25,967 | 86.6% |
| $60,000 pension · $20,000 other · AB | $13,629 | $46,371 | 77.3% |
Income tax only, no CPP or EI on pension income · 2026 tax tables · verified 2026-09-20 · how we calculate
FAQ
How much tax do I pay on $45,000 of retirement income in Ontario?
With $15,000 of other taxable income, $45,000 of retirement income in Ontario in 2026 means $8,266 of income tax and you keep $36,734 of the pension income. The effective rate on the pension portion is 18.4%. No CPP or EI comes off pension income, so the tax is income tax only.
Do I pay CPP and EI on pension income in Canada?
No. Pension income, RRIF withdrawals, CPP and OAS payments are taxable income, but they do not attract CPP/QPP, EI or QPIP contributions. That is why the main salary calculator overstates what a retiree keeps: it deducts payroll contributions from a salary. This calculator shows income tax only, which is the tax that applies to retirement income.
Is retirement income taxed more if I have other income?
Yes, per dollar. Canada taxes combined income, so your pension income is added on top of your other taxable income and taxed at the marginal rates that apply above it, not at the low rates that applied to your first dollars. The calculator shows the income tax the pension portion itself causes, with the basic credits counted once against your combined income.
How much tax on $45,000 of retirement income in Quebec?
With $15,000 of other taxable income, $45,000 of retirement income in Quebec in 2026 means $9,821 of income tax and you keep $35,179 of the pension income. The effective rate is 21.8%, higher than in Ontario because Quebec's provincial income tax rates are higher at these incomes.
How much tax on a $60,000 pension in Alberta?
With $20,000 of other taxable income, $60,000 of retirement income in Alberta in 2026 means $13,629 of income tax and you keep $46,371. Alberta has no provincial sales tax, but that does not change income tax: the result is federal plus Alberta income tax on the pension portion.
Do pension payers withhold tax from each payment?
Usually yes. Pension payers withhold income tax from each payment, and the amount withheld depends on the forms you file with each payer. The figures here are the annual income tax on the pension portion, which is what the combined income actually costs. Any over-withholding comes back as a refund when you file your tax return.
Is RRIF income taxed the same as pension income?
Yes, in this calculator. A RRIF withdrawal counts as taxable income in the year it is withdrawn, at the same marginal rates as pension income, and it does not attract CPP/QPP, EI or QPIP. Enter the RRIF amount as pension income. The calculator does not model the pension income amount or the age amount, so some retirees may owe less than shown. The figures also reflect payroll-linked credits computed at your combined income, so a retiree with no employment income could owe more than shown.