Income tax and take-home pay in Canada, 2026
Quick summary
Your pay cheque loses federal tax, provincial tax, CPP and EI. In 2026 the federal rates run from 14% to 33%, CPP is 5.95% above $3,500 and EI is $1.63 per $100. Try thetake-home pay calculator with your own numbers.
Checked November 3, 2026. Main source: BNN Bloomberg: 2026 federal tax brackets announced by the CRA (Dec. 1, 2025). See all 3 sources.
2026 federal tax brackets
Federal tax is marginal: each rate applies only to the slice of income inside its bracket. These are the 2026 brackets as reported after the Canada Revenue Agency announced them, with a 2% indexation increase.
| Taxable income | Federal rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
The basic personal amount is $16,452 at lower incomes, which gives a federal credit of about $2,303 at the 14% rate. It phases down for higher incomes. Provinces and territories add their own tax on top, with their own brackets.
Payroll deductions that come off every cheque
| Deduction | 2026 figure |
|---|---|
| CPP, employee | 5.95% on earnings between $3,500 and $74,600 |
| CPP2, employee | 4.00% on earnings between $74,600 and $85,000 |
| EI, employee | $1.63 per $100, on up to $68,900 (maximum $1,123.07) |
Quebec residents pay a lower EI rate ($1.30 per $100) because Quebec runs its own parental insurance plan.
Provincial tax is the second tax
Everyone in Canada pays federal tax. You also pay tax to the province or territory where you live on December 31. Each place sets its own brackets, and the two are added together.
- Income tax in British Columbia, 2026
- Income tax in Alberta, 2026
- Income tax in Saskatchewan, 2026
- Income tax in Manitoba, 2026
- Income tax in Ontario, 2026
- Income tax in Quebec, 2026
- Income tax in New Brunswick, 2026
- Income tax in Nova Scotia, 2026
- Income tax in Prince Edward Island, 2026
- Income tax in Newfoundland and Labrador, 2026
- Income tax in Yukon, 2026
- Income tax in Northwest Territories, 2026
- Income tax in Nunavut, 2026
- When are taxes due in Canada?
- Do I have to file a tax return?
- How long does a tax refund take?
A federal-only example at $60,000 a year
This shows the method, not your bill. It leaves out provincial tax and credits other than the basic personal amount.
- Federal tax before credits: 14% of $58,523 is $8,193.22, plus 20.5% of the next $1,477, which is $302.79. Total $8,496.01.
- Minus the basic personal amount credit of $2,303: about $6,193.
- CPP: 5.95% of ($60,000 minus $3,500) is $3,361.75.
- EI: 1.63% of $60,000 is $978.00.
- These three items total about $10,533 before provincial tax, so provincial tax is the biggest missing piece.
Why you get a refund or owe tax
Your employer withholds tax during the year based on a guess of your annual income. When you file, the CRA compares what was withheld with what you owe. Deductions and credits you claim at filing, such as RRSP contributions, can lower the bill and create a refund.
Questions people ask
What is the lowest federal tax rate in 2026?
The lowest federal rate is 14% on taxable income up to $58,523.
How much CPP do I pay in 2026?
Employees pay 5.95% on earnings between $3,500 and $74,600, and 4.00% on earnings between $74,600 and $85,000.
How much EI do I pay in 2026?
Employees pay $1.63 per $100 of insurable earnings, up to $68,900 of earnings, so up to $1,123.07 a year.
Does this include provincial tax?
No. Each province and territory sets its own brackets, so the worked example is federal only.