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Canada tax calculator

Canada applies income tax and social contributions. Enter a gross salary in CAD to see what reaches your account.

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How Canada taxes a salary

  1. Canada Pension Plan 5.95% on pensionable earnings between the 3,500 basic exemption and the 74,600 YMPE. Maximum employee contribution 4,230.45. Only the enhanced 1 percentage point of the 5.95% is deductible from income; the base 4.95% instead generates a non-refundable credit.
  2. Canada Pension Plan (CPP2) Second additional contribution, introduced 2024-01-01. 4% on earnings between the YMPE of 74,600 and the YAMPE of 85,000. Maximum 416.00.
  3. Employment Insurance 1.63% on insurable earnings up to 68,900. Maximum employee premium 1,123.07. Quebec runs a separate rate of 1.30%.
  4. Federal Income Tax Lowest rate cut from 15% to 14% effective 2025-07-01, full-year 14% from 2026. Thresholds indexed 2.0% for 2026.
  5. Basic Personal Amount Non-refundable credit worth BPA times the lowest federal rate, so 2,303 at full value. Enhanced amount phases out between 181,440 and 258,482, bottoming at 14,829.
  6. CPP Contribution Credit Non-refundable credit on the base portion of CPP only. Maximum qualifying amount 3,519.45, giving a credit of 492.72 at the 14% lowest rate.
  7. EI Premium Credit Non-refundable credit on employee EI premiums at the lowest federal rate.
  8. Canada Employment Amount Maximum non-refundable credit 210.14, being 1,501 at the 14% lowest rate. Built into the federal payroll deduction tables. Not available on pension income.

Source

Checked against Canada Revenue Agency on 2026-08-16. CRA 2026 indexation 2.0%; lowest rate 14% per canada.ca; CPP/CPP2/EI 2026 maximums; CEA credit 210.14 per CRA T4032; KPMG 2026 rates and credits tables. View the authority's own page.

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