GenzeeCanada Income Tax Calculator 2026
Federal income tax, CPP/CPP2 and EI on your Canadian salary — with a bracket-by-bracket breakdown. Federal only; provincial tax is not included.
Take-home pay
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after federal tax, CPP/CPP2 and EI
Show federal bracket breakdown
| Band (annual) | Rate | Tax in band |
|---|
2026 federal tax brackets
Canada's federal income tax is progressive — each bracket rate applies only to the income within that band, not your whole income. For 2026:
- 14% up to $58,523
- 20.5% from $58,523 to $117,045
- 26% from $117,045 to $181,440
- 29% from $181,440 to $258,482
- 33% above $258,482
The lowest bracket rate dropped from 15% to 14%, phased in from 1 July 2025 and fully in effect for 2026.
The basic personal amount
Everyone gets a basic personal amount (BPA) of $16,452 for 2026 — a non-refundable credit worth $16,452 × 14% = $2,303 off your federal tax bill, regardless of income level. High earners above $181,440 see this credit gradually reduced toward a lower base amount; this calculator applies the full credit and does not model that claw-back.
CPP and EI
On top of income tax, employees pay CPP (Canada Pension Plan) at 5.95% on earnings between the $3,500 exemption and the $74,600 ceiling, plus an additional CPP2 at 4% on earnings between $74,600 and $85,000. EI (Employment Insurance) is 1.63% on earnings up to $68,900. Both stop once you hit their respective ceilings — that's why higher earners see their CPP/EI deduction plateau.
Worked example
On an $80,000 salary: federal tax on the brackets is about $12,596, minus the $2,303 BPA credit, for a net federal tax of roughly $10,293. CPP is $4,230 (base) plus $216 (CPP2) = $4,446, and EI is $1,123 (at the annual cap). Total deductions: about $15,862, leaving take-home pay of roughly $64,138 before any provincial tax.
What this calculator doesn't cover
This is a federal-only estimate for a standard employee. It does not include: provincial or territorial income tax (which varies significantly by province), the high-income BPA claw-back, RRSP or other deductions, tax credits beyond the BPA, or self-employment CPP rules. Use it to understand your federal deduction, then add your province's tax to get the full picture.
Frequently asked questions
Does this include provincial tax?
No — this calculator covers federal tax, CPP/CPP2 and EI only. Every province and territory adds its own income tax on top with its own brackets, so your actual total tax is higher than the federal-only figure shown here.
What is the basic personal amount?
It's a non-refundable federal tax credit — for 2026 it's $16,452 — that effectively means everyone pays no federal tax on roughly their first $16,452 of income. This calculator applies the credit at the standard rate; the additional claw-back that reduces the credit for very high earners (above $181,440) is not modeled.
What are CPP and EI?
CPP (Canada Pension Plan) and EI (Employment Insurance) are mandatory payroll deductions, separate from income tax. CPP funds your future retirement pension; EI funds unemployment benefits. Both have annual earnings ceilings, so high earners stop paying more once they hit the maximum.
Why did the lowest tax rate change to 14%?
The federal government reduced the lowest personal income tax bracket rate from 15% to 14%, phased in from 1 July 2025 and fully in effect for the 2026 tax year.
Is this calculator accurate for self-employed income?
No — self-employed individuals pay both the employee and employer portions of CPP, and don't pay EI unless they've opted into the special self-employed program. This tool models a standard employee's payroll deductions only.