This is your after-federal-tax amount — provincial/territorial tax still applies on top and is not deducted above.
What This Calculator Estimates
Canadian salaries are subject to both federal and provincial income tax, along with CPP (Canada Pension Plan) and EI (Employment Insurance) contributions. This calculator computes your exact federal tax using the current 2026 CRA brackets, Basic Personal Amount, and payroll credits, plus CPP, CPP2, and EI, automatically. Provincial/territorial tax is calculated separately by each province (rates vary from roughly 8% to 25%+ depending on income and province) and is not included in this calculator.
How to Use This Calculator
- Enter your annual gross salary in CAD.
- Click Calculate Federal Tax, CPP & EI.
- Review your exact federal tax, CPP, CPP2, EI, and after-federal-tax pay.
- Add your provincial tax separately, since it is not included here.
2026 Canada CPP & EI Rates
CPP is 5.95% on earnings between the $3,500 exemption and the $74,600 Year's Maximum Pensionable Earnings (YMPE), capping at $4,230.45. A second tier, CPP2, adds 4% on earnings from $74,600 up to $85,000 (max $416), bringing the combined CPP maximum to $4,646.45. EI is 1.63% on insurable earnings up to $68,900 (max $1,123.07 for employees; Quebec uses a reduced 1.31% EI rate alongside its own QPP). Once you hit these annual maximums, CPP and EI deductions stop for the rest of the year — federal and provincial income tax continue on top of these payroll contributions.
Worked Example
On a $40,000 annual salary: CPP = 5.95% × ($40,000 − $3,500) = $2,171.75. EI = 1.63% × $40,000 = $652.00. Federal tax before credits = 14% × $40,000 = $5,600, reduced by credits (Basic Personal Amount $16,452 + CPP $2,171.75 + EI $652 + Canada Employment Amount $1,501 = $20,776.75 at 14% = $2,908.75), giving federal tax of about $2,691.26. After federal tax, CPP, and EI, the amount remaining is $34,485.00/year — before any provincial tax is subtracted.
Official Sources
Canada Revenue Agency (CRA) for federal/provincial tax and CPP/EI rates and annual maximums.
Related Calculators
Salary to Hourly Calculator · Income Tax Calculator Canada · Property Tax
Tips for a More Accurate Estimate
- Check both federal and your specific province's tax brackets, since they combine for your total tax rate.
- Confirm current CPP and EI rates and annual maximum contribution thresholds.
- Pair this with the Federal Income Tax Calculator for a fuller federal estimate.
- Factor in any provincial-specific credits or deductions that may apply to you.
- Remember take-home pay can vary significantly between provinces for the same gross salary.
Frequently Asked Questions
Why does my province matter for salary calculations in Canada?
Each province and territory sets its own income tax brackets and rates on top of federal tax, so take-home pay for the same gross salary can differ meaningfully depending on where you live.
What are CPP and EI?
CPP (Canada Pension Plan) funds retirement benefits and EI (Employment Insurance) funds unemployment benefits — both are mandatory payroll deductions with their own contribution rates and annual maximums.
Does this calculator compute exact federal and provincial tax automatically?
It computes your exact federal tax automatically using current CRA brackets and credits. Provincial tax is not included, since each province sets its own separate brackets — check your provincial tax authority for that portion.
Is there a maximum amount of CPP or EI I'll pay each year?
Yes, both CPP and EI have annual maximum contribution amounts based on a maximum insurable/pensionable earnings threshold set each year by the CRA and Service Canada.
How can I estimate my true take-home pay in Canada?
This calculator already gives you the exact federal, CPP, and EI figures. Add your province's tax separately — provincial rates and brackets differ enough across Canada that no single number would be accurate here.
Last updated: May 11, 2026