Canadian Paycheck Calculator 2026
Calculate your exact take-home pay after federal tax, provincial tax, CPP, CPP2, and EI. Supports weekly, biweekly, semi-monthly, and monthly pay periods for all provinces.
Your Pay Details
📋 How to use this calculator
- Enter your gross annual salary or hourly wage.
- Select your province and pay frequency.
- Add any RRSP contributions to reduce your taxable income.
- Click Calculate Paycheck to see your breakdown.
Quick presets:
Your Results
Enter your salary and click Calculate Paycheck to see your take-home pay.
Take-Home Per Paycheck
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Monthly Take-Home
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Net income ÷ 12
Annual Net Income
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After all deductions
Effective Tax Rate
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All deductions / gross
Marginal Tax Rate
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Rate on next dollar
RRSP Tax Savings
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Annual tax reduction
Annual Summary
Understanding Your Canadian Paycheck
🇨🇦 What Gets Deducted from Your Paycheck?
Every Canadian employee has four mandatory deductions taken from each paycheck: federal income tax, provincial income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums. Your employer also matches your CPP contribution and pays 1.4 times your EI premium — these employer contributions do not come off your paycheck but are a real cost to your employer. If you earn above $68,500, you also contribute to CPP2 at 4% on earnings between $68,500 and $73,200 (up to $188/year in 2026). Quebec residents pay into QPP and QPIP instead of CPP and EI — this calculator uses simplified federal equivalents for Quebec and the actual difference is minor for most employees.
📊 2026 Payroll Deduction Rates
| Deduction | Rate | 2026 Maximum |
|---|---|---|
| CPP (employee) | 5.95% of pensionable earnings | $3,867.50 |
| CPP2 (employee) | 4% on $68,500–$73,200 | $188.00 |
| EI (employee) | 1.666% of insurable earnings | $1,049.12 |
| Federal income tax | 15% – 33% (progressive) | No maximum |
| Provincial income tax | Varies by province | No maximum |
💰 How RRSP Contributions Reduce Your Paycheck Deductions
Contributing to an RRSP reduces your taxable income and lowers the tax withheld from each paycheck — but only if your employer knows about your contributions. You can file a T1213 form with the CRA to get a reduced withholding at source based on your planned RRSP contributions. Without this form, you pay full tax throughout the year and receive a refund when you file. The RRSP deduction does not reduce CPP or EI — those are calculated on gross employment income regardless of RRSP contributions.
❓ Frequently Asked Questions
Why does my actual paycheck differ from this calculator?
This calculator uses annualized tax rates applied evenly to each pay period. Your actual deductions may differ if you have a TD1 form with additional credits claimed, benefit deductions (health, dental, group RRSP, parking), union dues, garnishments, or if you started mid-year and your employer annualizes differently. The results are a close estimate for most employees on standard T4 employment.
What is CPP2 and do I have to pay it?
CPP2 is the second additional Canada Pension Plan contribution introduced in 2024. If you earn between $68,500 and $73,200 in 2026, you contribute 4% on that band — a maximum of $188 per year. Like CPP1, your employer matches your CPP2 contribution. The benefit is a slightly higher CPP retirement pension in the future.
Is it better to be paid weekly or biweekly?
Your annual net income is identical regardless of pay frequency — only the timing changes. Biweekly pay means 26 paychecks per year, with two months having three paydays. Some people prefer the predictability of semi-monthly (exactly twice per month on fixed dates) for budgeting purposes. Weekly pay can feel like more money but the annual total is the same.
What is the minimum wage in Canada in 2026?
Minimum wage varies by province. In Ontario it is $17.60/hour as of October 2025. Alberta is $15.00/hour. British Columbia is $17.40/hour. Quebec is $16.10/hour. The federal minimum wage (for federally regulated industries) is $17.30/hour. Most provinces adjust minimum wage annually, typically in October.
🇨🇦 Understanding Your TD1 and Tax Credits
When you start a new job, your employer asks you to complete a TD1 form — the Personal Tax Credits Return. This form tells your employer how much tax to withhold from each paycheck. The basic personal amount ($16,129 federally in 2026) means you pay no federal tax on the first $16,129 of income. Additional TD1 credits include the age amount (65+), disability amount, tuition, and caregiver amounts. If you only have one employer and no complex credits, the default TD1 is usually fine. Claiming credits you are not entitled to results in a tax bill at filing time.
📊 CPP2 — The Second Canada Pension Plan
Since 2024, Canada introduced a second CPP contribution tier (CPP2) on earnings above the Year's Maximum Pensionable Earnings (YMPE). In 2026, CPP2 applies at 4% on earnings between $68,500 and $73,200, with a maximum employee contribution of $188. Like CPP1, your employer matches your CPP2 contribution. Unlike CPP1, the CPP2 enhanced benefit will be paid as a separate additional benefit on top of your regular CPP retirement pension. Both CPP contributions appear as deductions on your T4 slip and are claimed as non-refundable tax credits when you file.
❓ Frequently Asked Questions
Why does my take-home pay vary between paychecks?
Your tax withholding is calculated on each paycheck as if you'll earn the same amount all year. If you had a month without pay, received a bonus, or your hours varied, the withholding adjusts. CPP and EI contributions also stop mid-year once you hit the annual maximum — so your take-home pay increases slightly after that point. For most salaried employees, tax withholding is fairly consistent throughout the year.
What is the difference between gross and net pay?
Gross pay is your total earnings before any deductions. Net pay (take-home pay) is what you receive after federal tax, provincial tax, CPP, EI, and any other deductions such as group benefits or RRSP contributions are subtracted. The gap between gross and net widens as income rises — a $100,000 salary in Ontario results in roughly $72,000–$74,000 in take-home pay depending on deductions claimed.