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✦ Tools & Resources

Income Tax Calculator for Canada (2026)

Estimate your 2026 federal and provincial income tax, CPP and EI, and your real take-home pay for any province or territory. You also get your marginal and average tax rates.

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Take-home pay
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Federal tax{{ fFed }}
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Total deductions{{ fTotalDed }}
Average rate
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Marginal rate
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Monthly take-home
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Bi-weekly take-home
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Where each dollar goes
Your gross income, split into take-home and deductions.
You keep {{ keepShare }} of every dollar you earn in {{ provName }} at this income.
Take-home pay on {{ fGross }} across Canada
Same income, same deductions, different province.
2026 rates and brackets, including the Ontario surtax and health premium and the Quebec federal abatement. Assumes the basic personal amount is your only credit; low-income reductions and other credits are not included. Estimates only, not tax advice.
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✦ 2026 Rates

{{ provName }} Tax Brackets for 2026

Each rate applies only to income inside that bracket, not to your whole income. Highlighted: where your taxable income of {{ fTaxable }} lands.

{{ provName }} (provincial)
Taxable incomeRate
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Ontario also applies a surtax of 20% on provincial tax over $5,818 and a further 36% over $7,446, plus a health premium of up to $900. Both are included in the calculator above.
Federal (all of Canada)
Taxable incomeRate
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The lowest federal rate dropped to 14% for 2026. The federal basic personal amount lets you earn up to $16,452 tax-free.
✦ Perspective

How You Compare

Your income vs. Canadian benchmarks
Full-time minimum wage in {{ provName }} is {{ minWageRate }}, about {{ minWageAnnual }} per year.
Sources: average tax filer income ($59,900) and top 1% threshold ($293,800) are from Statistics Canada, High-income Canadians, 2023 (latest year available, released October 2025). Median after-tax income of families and unattached individuals was $74,200 per the Canadian Income Survey, 2023. Minimum wage is the current legislated rate for {{ provName }}, assuming 40 hours/week, 52 weeks.
✦ Good To Know

2026 Taxes, Explained

The biggest change: the lowest federal tax rate is now 14% for the full year (it was 14.5% in 2025 and 15% before that). That applies to your first $58,523 of taxable income, so virtually every taxpayer saves something. Federal brackets and the basic personal amount also rose 2% with inflation; you can now earn $16,452 federally tax-free.

On the payroll side, CPP now applies up to $74,600 of earnings, with the second CPP tier (CPP2) running from there to $85,000. The EI ceiling is $68,900 at a 1.63% rate.

Your marginal rate is the tax on your next dollar of income; your average rate is total tax divided by total income. Canada taxes income in layers, so moving into a higher bracket never reduces your take-home pay. Only the dollars above the threshold get taxed at the higher rate.

The marginal rate is the one that matters for decisions: it tells you what an RRSP contribution saves, what a bonus really nets you, and whether income splitting is worth it.

The workhorses are deductions that reduce taxable income: RRSP contributions (up to $33,810 for 2026, based on 18% of last year's earned income), FHSA contributions if you're saving for a first home, and childcare expenses. Try adding an RRSP amount in the calculator above and watch your take-home change; at higher incomes every $1,000 contributed can save $400 or more. The RRSP Tax Savings Calculator shows the tax savings for any contribution.

Beyond that, credits and timing matter: medical expenses, donations, tuition transfers, and for business owners, how you split salary and dividends. If you'd like a plan rather than a guess, call me at (905) 814-0111 or see our tax preparation service.

Is all income taxed the same way?

No. Salary, self-employment income and interest are taxed in full at your marginal rate. Only half of a capital gain is added to your income. Eligible dividends are grossed up by 38%, but the tax on them is then reduced by the dividend tax credit, so they're usually taxed at a lower rate than salary.

This calculator covers employment and self-employment income. If you're paid through your own corporation, the Salary vs. Dividends Calculator compares both routes.

Yes. CPP and EI aren't income tax, but they come off your pay all the same, so this calculator counts them in your take-home figure. Employees pay CPP up to $4,230 plus up to $416 of CPP2, and EI up to $1,123 in 2026.

Self-employed? You pay both the employee and employer halves of CPP (up to roughly $9,293 total) but no EI unless you opt in. Switch the employment type above to see the difference. Quebec residents pay into QPP and QPIP instead, which this tool approximates.

Think you're paying too much tax?
Farrukh Ahmed, CPA, has served Mississauga since 1995 and handles tax preparation, CRA assessment support and estate planning. A one-hour review often pays for itself. Responses within 24 hours.
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