Last updated: 2026 CRA, provincial, CPP, EI, Quebec QPP, and QPIP assumptions reviewed. Assumptions & sources
Tools & Resources

2026 Canadian Income Tax Calculator

A free Canadian tax calculator using 2026 federal and provincial tax brackets. Employment, self-employment, capital gains, dividends, RRSP, FHSA, charitable donation credit, RRSP bracket optimization, and a bracket-by-bracket breakdown - for all 10 provinces.

Your Income

$

Deductions & Credits

Deductions (reduce taxable income)
$
$
Charitable Giving (generates tax credit)
$
Sets donations to that % of your gross employment income

Your Tax Summary

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Effective Rate
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Marginal Rate
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Monthly Take-Home
Per Year
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Per Bi-week
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Per Week
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Per Day
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Income
Employment Income--
Taxable Income--
Tax & Payroll Deductions
Federal Income Tax--
Basic Personal Credit--
Net Federal Tax--
Provincial Tax (ON)--
Net Provincial Tax--
CPP Contributions--
EI Premiums--
Total Tax & Deductions--
Annual After-Tax Income--

Uses 2026 CRA federal and provincial tax brackets, Revenu Québec tax/QPP/QPIP assumptions, CPP (5.95%, max $4,230.45), CPP2 (4%, max $416), EI outside Quebec (1.63%, max $1,123.07), and Quebec employment QPIP where applicable. Self-employment CPP/QPP is estimated at double rate. Capital gains use a 50% inclusion rate. Eligible dividends gross up 38%, ineligible dividends 15%, with federal and provincial dividend tax credits. Ontario surtax applied where applicable. This is an estimate - consult a licensed tax professional for exact figures.

Where Your Income Goes

Visual breakdown of every dollar you earn.

Your Tax Brackets

How each portion of your income is taxed - bracket by bracket, combined federal and provincial.

Income Range Federal Provincial Combined Tax

Understanding Your Tax Rates

Effective Rate

Your total tax divided by total income. This is the real percentage of your income that goes to tax and payroll deductions - the number that matters for budgeting.

Marginal Rate

The tax rate on your next dollar earned. This is the rate that matters for decisions like RRSP contributions, overtime, and side income - because it tells you what you pay (or save) on each additional dollar.

Key insight: Every dollar you contribute to your RRSP saves you tax at your marginal rate. At a 29.7% marginal rate, a $10,000 RRSP contribution saves you approximately $2,970 in tax.

Frequently Asked Questions

How is income tax calculated in Canada?

Canada uses a progressive tax system at both the federal and provincial levels. You pay a lower rate on income up to each bracket threshold, and a higher rate only on income above that threshold. This calculator applies both federal and provincial rates to show your effective and marginal tax rates.

What is the difference between marginal and effective tax rate?

Your marginal rate is the rate you pay on the next dollar of income. Your effective rate is the average rate across your total income. The marginal rate matters most when deciding whether to contribute to an RRSP (you save at your marginal rate) or evaluate a raise. The effective rate is your actual tax burden.

Does RRSP contribution reduce my taxes?

Yes. RRSP contributions reduce your taxable income dollar for dollar. If you are in the 33% federal bracket and contribute $10,000 to your RRSP, you reduce your federal tax by $3,300 (plus your provincial rate). The calculator shows your tax with and without the RRSP deduction.

How do CPP and EI affect my take-home pay?

Both are mandatory payroll deductions. CPP contributions in 2026 are 5.95% of insurable earnings between roughly $3,500 and $73,200. EI contributions are 1.64% of insurable earnings up to roughly $65,700. The calculator includes these to give you an accurate take-home figure.

Why is the marginal rate in some provinces over 50%?

At higher income levels, the combined federal and provincial marginal rate can exceed 50% in some provinces (Ontario, British Columbia, Quebec). This means more than half of every additional dollar earned goes to tax. This is one reason strategic RRSP contributions matter more at higher income levels.