Income Tax & Take-Home Pay Calculator
What you actually keep after tax in 2026 — real provincial brackets for all 13 jurisdictions, CPP/EI/QPIP, dividends and capital gains, RRSP/FHSA deductions, and your true marginal rate. Not a flat-rate guess.
Where every dollar goes
Your total income split into federal tax, provincial tax, payroll (CPP/EI/QPIP), and take-home.
Tax breakdown
Line-by-line, the way your return actually stacks up.
| Component | Amount |
|---|
How your income fills the brackets
Combined federal + provincial statutory rate on each slice of your taxable income.
| Taxable income slice | Your $ in it | Fed | Prov | Tax on slice |
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What you take home per paycheque
Net pay by pay period, after all tax and payroll deductions.
Marginal rate across incomes
Combined marginal rate on employment income from $0 to $300k in your province — watch the bracket steps and payroll ceilings.
How this is calculated
Marginal vs average rate
Your average rate is (total tax + CPP + EI + QPIP) ÷ total income — the overall bite. Your marginal rate is the tax on your next dollar. This tool computes it directly as [deductions(income + $100) − deductions(income)] ÷ $100, so it captures bracket jumps, the Ontario surtax, and CPP/EI ceilings — not just the headline bracket rate.
Taxable income
employment + self-employment + capital gains × 50% + eligible dividends × 1.38 + non-eligible dividends × 1.15 − RRSP − FHSA. For the self-employed, half of the self-employed CPP is also deducted (the employer-equivalent share).
Federal tax
Progressive over the 2026 brackets (14% up to $58,523, then 20.5% / 26% / 29% / 33%). We subtract the basic personal amount credit (BPA × 14%, with the enhancement phased out above $181,440), the federal dividend tax credit (15.02% of grossed-up eligible, 9.03% of grossed-up non-eligible), and a credit for CPP/EI premiums at 14%. In Quebec, federal tax is reduced by the 16.5% Quebec abatement.
Provincial tax
Progressive over each province's real 2026 brackets, minus the provincial BPA at the lowest rate and the provincial dividend tax credit. Ontario then adds a surtax (20% of provincial tax over $5,818, +36% over $7,446) and the Ontario Health Premium. Manitoba claws back its BPA between $200k and $400k of income. Yukon mirrors the federal BPA.
CPP, EI & QPIP (2026)
CPP: 5.95% on earnings between $3,500 and $74,600 (max $4,230.45) plus CPP2 at 4% from $74,600 to $85,000 (max $416). Self-employed pay 2×. EI: 1.63% on the first $68,900 (max $1,123.07); in Quebec the EI rate is reduced to 1.30% and QPIP of 0.494% applies. Self-employed pay no EI unless they opt in to special benefits.
RRSP / FHSA refund estimate
A deduction saves tax at your marginal rate, so the estimated refund is roughly (RRSP + FHSA) × marginal rate. Shown above your results when you enter a contribution.
Approximations & what this does not model
To keep the estimate transparent we treat all CPP (including the enhanced/CPP2 portion) as a non-refundable credit; strictly, the enhanced portion is a deduction, which slightly changes tax at high incomes. We also assume net income equals taxable income for BPA/clawback purposes. Not modelled: the Canada Employment Amount, childcare/medical/donation/tuition credits, LIFT and other low-income supplements, spousal/dependant amounts, OAS clawback, or the alternative minimum tax. Dividend tax credit rates are the 2026 provincial/territorial values (source: TaxTips.ca, verified July 2026). Compare with the dividend income, capital gains, RRSP vs TFSA, and salary-to-hourly tools.