Calculate take-home pay for any employee in Canada: CPP or QPP (including CPP2), EI, QPIP, federal and provincial income tax, and net pay per pay period. Employers also see the employer contributions and the total cost of the employee.
| Employee | Per pay | Annual |
|---|
| Employer | Per pay | Annual |
|---|
Estimate using 2026 rates for a regular employee with the basic personal amounts only (TD1 claim code 1). Deductions are averaged over the year; real payroll stops CPP and EI once the annual maximum is reached, so late-year pay cheques are higher for high earners. For exact source deductions, use the CRA’s PDOC or Revenu Québec’s WinRAS.
What comes off a pay cheque in Canada
- CPP (Canada Pension Plan), or QPP in Quebec: a contribution on earnings above $3,500 up to the yearly maximum. The employer pays the same amount.
- CPP2 / QPP2: a second contribution of 4% on earnings between $74,600 and $85,000.
- EI (Employment Insurance): a premium up to the maximum insurable earnings. The employer pays 1.4 times the employee amount.
- QPIP (Quebec only): Quebec Parental Insurance Plan premium. Quebec workers pay a lower EI rate in exchange.
- Federal income tax and provincial or territorial income tax, withheld each pay based on the employee’s TD1 forms.
2026 CPP, QPP, EI and QPIP rates
| Contribution | Employee rate | Earnings range | Employee max | Employer max |
|---|---|---|---|---|
| CPP (base + first additional) | 5.95% | $3,500 – $74,600 | $4,230.45 | $4,230.45 |
| QPP (Quebec) | 6.30% | $3,500 – $74,600 | $4,479.30 | $4,479.30 |
| CPP2 / QPP2 | 4.00% | $74,600 – $85,000 | $416.00 | $416.00 |
| EI (outside Quebec) | 1.63% | Up to $68,900 | $1,123.07 | $1,572.30 |
| EI (Quebec) | 1.30% | Up to $68,900 | $895.70 | $1,253.98 |
| QPIP (Quebec) | 0.430% | Up to $103,000 | $442.90 | $620.06 |
2026 federal income tax brackets
| Taxable income | Rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 – $117,045 | 20.5% |
| $117,045 – $181,440 | 26% |
| $181,440 – $258,482 | 29% |
| Over $258,482 | 33% |
The federal basic personal amount is $16,452 for 2026 (gradually reduced to $14,829 for income above $181,440). Quebec residents receive a 16.5% abatement on federal tax because Quebec runs its own programs.
Net pay on a $60,000 salary by province (2026)
Bi-weekly pay, basic personal amounts only:
| Province / territory | Income tax | CPP/QPP, EI, QPIP | Net annual pay | Net bi-weekly |
|---|---|---|---|---|
| Alberta | $7,969.60 | $4,339.75 | $47,690.66 | $1,834.26 |
| British Columbia | $7,905.68 | $4,339.75 | $47,754.57 | $1,836.71 |
| Manitoba | $9,876.85 | $4,339.75 | $45,783.40 | $1,760.90 |
| New Brunswick | $9,612.63 | $4,339.75 | $46,047.62 | $1,771.06 |
| Newfoundland and Labrador | $10,063.29 | $4,339.75 | $45,596.96 | $1,753.73 |
| Northwest Territories | $7,722.23 | $4,339.75 | $47,938.02 | $1,843.77 |
| Nova Scotia | $10,933.91 | $4,339.75 | $44,726.34 | $1,720.24 |
| Nunavut | $6,887.37 | $4,339.75 | $48,772.89 | $1,875.88 |
| Ontario | $8,320.50 | $4,339.75 | $47,339.75 | $1,820.76 |
| Prince Edward Island | $10,213.65 | $4,339.75 | $45,446.60 | $1,747.95 |
| Quebec | $10,349.47 | $4,597.50 | $45,053.03 | $1,732.81 |
| Saskatchewan | $9,140.68 | $4,339.75 | $46,519.57 | $1,789.21 |
| Yukon | $7,871.34 | $4,339.75 | $47,788.92 | $1,838.04 |
The same $60,000 salary leaves about $4,000 more in a Nunavut employee’s pocket than in Nova Scotia, mostly because of provincial tax rates and basic personal amounts.
Take-home pay by salary in Ontario (2026)
| Gross salary | Net annual | Net bi-weekly | Total deductions |
|---|---|---|---|
| $40,000 | $32,813.54 | $1,262.06 | 18.0% |
| $50,000 | $40,144.94 | $1,544.04 | 19.7% |
| $60,000 | $47,339.75 | $1,820.76 | 21.1% |
| $75,000 | $56,925.83 | $2,189.45 | 24.1% |
| $100,000 | $74,206.13 | $2,854.08 | 25.8% |
| $150,000 | $104,319.89 | $4,012.30 | 30.5% |
Ontario figures include the Ontario surtax and the Ontario Health Premium, which is collected through payroll.
Worked example: $60,000 in Ontario
CPP: ($60,000 − $3,500) × 5.95% = $3,361.75
EI: $60,000 × 1.63% = $978.00
Federal tax: about $5,338.30 after the basic personal amount, Canada employment amount and CPP/EI credits
Ontario tax: about $2,382.20 plus the $600 Ontario Health Premium = $2,982.20
Net pay: $47,339.75 a year, or $1,820.76 every two weeks.
Employer cost: $60,000 + $3,361.75 CPP + $1,369.20 EI = $64,730.95.
What payroll costs an employer
On top of gross pay, employers pay their share of CPP/QPP (equal to the employee’s), EI at 1.4 times the employee premium, and QPIP in Quebec. Depending on the province, there can also be workers’ compensation premiums and provincial payroll taxes (for example Ontario’s Employer Health Tax above an exemption, or Quebec’s Health Services Fund and CNESST contributions). This calculator shows the federal-program contributions only.
Employer payroll checklist
- Open a payroll program account (RP) with the CRA, and with Revenu Québec if you have Quebec employees.
- Collect TD1 forms (federal and provincial; TP-1015.3 in Quebec) from each new employee.
- Deduct CPP/QPP, EI, QPIP and income tax every pay.
- Remit deductions plus your employer share by the due date (monthly for most small employers).
- File T4 slips (and RL-1 in Quebec) by the end of February.
- Issue a Record of Employment (ROE) when an employee has an interruption of earnings.
Frequently asked questions
How do I calculate payroll deductions in Canada?
Deduct CPP or QPP (5.95% or 6.30% of earnings above $3,500), CPP2 on earnings between $74,600 and $85,000, EI (1.63%, or 1.30% in Quebec), QPIP in Quebec, then federal and provincial income tax based on the employee’s TD1 claim amounts. The calculator applies all 2026 rates automatically.
What is the take-home pay on $60,000 in Canada?
In 2026, about $47,340 a year in Ontario, $47,755 in British Columbia, $47,691 in Alberta and $45,053 in Quebec, for an employee claiming only the basic personal amounts.
What is the maximum CPP contribution for 2026?
$4,230.45 for CPP plus $416.00 for CPP2, a total of $4,646.45 for the employee. The employer pays the same amount.
What is the maximum EI premium for 2026?
$1,123.07 for employees outside Quebec and $895.70 in Quebec, on maximum insurable earnings of $68,900. Employers pay 1.4 times the employee premium.
Why is my bi-weekly pay higher at the end of the year?
Once you reach the annual CPP and EI maximums, those deductions stop for the rest of the year, so each pay cheque after that point is larger.
Do Quebec employees pay CPP?
No. Quebec employees contribute to the QPP instead of CPP, pay a lower EI rate, and also pay QPIP premiums. They file a separate provincial return with Revenu Québec.
Is this payroll calculator accurate?
It uses the official 2026 rates and brackets and is accurate to within a small margin for a typical employee. It does not include every provincial credit or low-income reduction, taxable benefits, bonuses or union dues. Use the CRA’s PDOC for official source deduction amounts.
Related calculators
- Salary calculator (hourly to annual)
- Income tax calculator
- Personal loan calculator
- Mortgage calculator
Disclaimer: Estimates for information only, not tax or payroll advice. Rates: CRA – Payroll and Revenu Québec – Source deductions. Official calculator: CRA PDOC.