Canadian income tax calculator — 2026
Enter your income and deductions. The calculator combines federal and provincial tax, CPP, and EI into a single breakdown — no sign-up required.
Your income
Box 14 of your T4 slip, before deductions.
Net income from self-employment (after expenses).
Interest, pension, rental, foreign income and any other fully taxable amounts.
Contributions claimed this year. Cannot exceed your RRSP deduction limit.
FHSA contributions, union dues, child-care expenses, etc.
Estimate only. This calculator does not model AMT, refundable credits, family benefits, or most provincial credits beyond the basic personal amount. For financial advice, speak with a CPA.
2026 estimate · Ontario
$0
after-tax income
How Canadian income tax works
Canada uses a progressive tax system with two layers: federal and provincial. Each layer has its own brackets and its own basic personal amount credit. The two are calculated independently and then added together.
Federal brackets for 2026
The federal government taxes income in five brackets, starting at 14% on income up to $58,523 and rising to 33% on income above $258,482. All taxpayers receive a federal basic personal amount of up to $16,452 (for 2026), which is converted to a non-refundable credit at the 14% rate.
Provincial tax
Every province and territory has its own brackets and credits. Ontario has five provincial brackets; Quebec has four and administers its own return separately from the federal one. Combined marginal rates — federal plus provincial — range from about 20% at low incomes to over 50% at high incomes in some provinces.
CPP and EI
Employees contribute to the Canada Pension Plan (CPP) at 5.95% of pensionable earnings between $3,500 and the Year's Maximum Pensionable Earnings ($74,600 in 2026). A second tier (CPP2) applies at 4% on earnings between the YMPE and the Year's Additional Maximum Pensionable Earnings ($85,000). EI premiums are 1.63% of insurable earnings up to $68,900. Quebec residents pay QPP and QPIP instead.
Non-refundable credits
Credits like the basic personal amount, the Canada Employment Amount, and the CPP/EI credit reduce the tax you owe — but if your credits exceed your tax, you do not receive a refund of the excess. They zero out your bill but cannot go below zero.
Source: CRA T4032 Payroll Deductions Tables and CRA Tax rates for individuals. This calculator covers 2026 and 2025. Last reviewed: July 2026.
Frequently asked questions
- How do Canadian income tax brackets work?
- Canada uses a marginal rate system. Only income within each bracket gets taxed at that bracket's rate. If you earn $120,000 in Ontario in 2026, the first $58,523 is taxed at 14% federally, the next $58,522 at 20.5%, and so on — not your entire income at the top rate. Federal and provincial taxes are calculated separately and then combined.
- What is the basic personal amount?
- The basic personal amount (BPA) is the amount of income you can earn tax-free. For 2026, the federal BPA is $16,452 for most taxpayers (it phases down for incomes above $181,440). Each province also has its own BPA. This is a non-refundable credit, so it reduces tax you owe — it does not create a refund if your tax is zero.
- What is a marginal vs. average tax rate?
- Your marginal rate is the rate on your next dollar of income. Your average rate (also called the effective rate) is total tax divided by total income. At $100,000 in Ontario, your combined marginal rate is about 43% — but your average rate is roughly 25%, because earlier income was taxed at lower rates.
- Does this calculator include CPP and EI?
- Yes. The calculator includes Canada Pension Plan (CPP) employee contributions, CPP2 (the second-tier enhancement on earnings between the YMPE and YAMPE), and Employment Insurance (EI) premiums. Quebec residents pay QPP, QPP2, and QPIP instead of CPP and partial EI. Self-employed individuals pay both employee and employer halves of CPP.
- What is the Ontario health premium?
- Ontario residents with taxable income above $20,000 pay a health premium of up to $900 per year. It is collected on your Ontario tax return and is included in the provincial tax line of this calculator. It is not a separate deduction — it is added to your provincial income tax.