This page documents every rate, bracket, threshold, and formula used by the calculators on Canadian Tax Calculators. We publish it for one reason: so that anyone using a calculator can verify where a number came from.
All figures below are for the 2026 tax year unless otherwise noted. Source links point to the primary government publication for each figure.
Canada's federal income tax system is progressive: income is taxed in layers, with each layer taxed at the rate for that bracket. Only the portion of income that falls inside a bracket is taxed at that bracket's rate.
Note: The lowest federal rate dropped from 15% to 14% partway through 2025 as a result of legislation tabled in May 2025. For the full 2026 tax year, the lowest bracket applies at 14% throughout.
| Taxable income (2026) | Federal rate |
|---|---|
| Up to $58,523 | 14.0% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26.0% |
| $181,440 to $258,482 | 29.0% |
| Over $258,482 | 33.0% |
Federal basic personal amount (BPA), 2026: $16,452 (maximum, for net income of $181,440 or less). Minimum BPA $14,829 for net income above $260,625. Phases down proportionally between those thresholds.
Federal indexation factor, 2026: 2.0%, applied to bracket thresholds and personal amounts.
Sources: CRA — Tax rates and income brackets for individuals · T4032 Payroll Deductions Tables — 2026
Each province and territory sets its own brackets, rates, and basic personal amount. Quebec administers its own income tax system separately from the CRA; every other province and territory calculates provincial tax on taxable income using the same definition the federal government uses.
| Taxable income (2026) | Alberta rate |
|---|---|
| Up to $61,200 | 8% |
| $61,200 to $154,259 | 10% |
| $154,259 to $185,111 | 12% |
| $185,111 to $246,813 | 13% |
| $246,813 to $370,220 | 14% |
| Over $370,220 | 15% |
Basic personal amount: $22,769
| Taxable income (2026) | British Columbia rate |
|---|---|
| Up to $50,363 | 5.6% |
| $50,363 to $100,728 | 7.7% |
| $100,728 to $115,648 | 10.5% |
| $115,648 to $140,430 | 12.29% |
| $140,430 to $190,405 | 14.7% |
| $190,405 to $265,545 | 16.8% |
| Over $265,545 | 20.5% |
Basic personal amount: $13,216
| Taxable income (2026) | Manitoba rate |
|---|---|
| Up to $47,000 | 10.8% |
| $47,000 to $100,000 | 12.75% |
| Over $100,000 | 17.4% |
Basic personal amount: $15,780
| Taxable income (2026) | New Brunswick rate |
|---|---|
| Up to $52,333 | 9.4% |
| $52,333 to $104,666 | 14% |
| $104,666 to $193,861 | 16% |
| Over $193,861 | 19.5% |
Basic personal amount: $13,664
| Taxable income (2026) | Newfoundland and Labrador rate |
|---|---|
| Up to $44,678 | 8.7% |
| $44,678 to $89,354 | 14.5% |
| $89,354 to $159,528 | 15.8% |
| $159,528 to $223,340 | 17.8% |
| $223,340 to $285,319 | 19.8% |
| $285,319 to $570,638 | 20.8% |
| $570,638 to $1,141,275 | 21.3% |
| Over $1,141,275 | 21.8% |
Basic personal amount: $11,188
| Taxable income (2026) | Northwest Territories rate |
|---|---|
| Up to $53,003 | 5.9% |
| $53,003 to $106,009 | 8.6% |
| $106,009 to $172,346 | 12.2% |
| Over $172,346 | 14.05% |
Basic personal amount: $18,198
| Taxable income (2026) | Nova Scotia rate |
|---|---|
| Up to $30,995 | 8.79% |
| $30,995 to $61,991 | 14.95% |
| $61,991 to $97,417 | 16.67% |
| $97,417 to $157,124 | 17.5% |
| Over $157,124 | 21% |
Basic personal amount: $11,932
| Taxable income (2026) | Nunavut rate |
|---|---|
| Up to $55,801 | 4% |
| $55,801 to $111,602 | 7% |
| $111,602 to $181,439 | 9% |
| Over $181,439 | 11.5% |
Basic personal amount: $19,659
| Taxable income (2026) | Ontario rate |
|---|---|
| Up to $53,891 | 5.05% |
| $53,891 to $107,785 | 9.15% |
| $107,785 to $150,000 | 11.16% |
| $150,000 to $220,000 | 12.16% |
| Over $220,000 | 13.16% |
Basic personal amount: $12,989
| Taxable income (2026) | Prince Edward Island rate |
|---|---|
| Up to $33,928 | 9.5% |
| $33,928 to $65,820 | 13.47% |
| $65,820 to $106,890 | 16.6% |
| $106,890 to $142,250 | 17.62% |
| $142,250 to $200,000 | 19% |
| Over $200,000 | 20% |
Basic personal amount: $15,000
| Taxable income (2026) | Quebec rate |
|---|---|
| Up to $54,345 | 14% |
| $54,345 to $108,680 | 19% |
| $108,680 to $132,245 | 24% |
| Over $132,245 | 25.75% |
Basic personal amount: $18,952
| Taxable income (2026) | Saskatchewan rate |
|---|---|
| Up to $54,532 | 10.5% |
| $54,532 to $155,805 | 12.5% |
| Over $155,805 | 14.5% |
Basic personal amount: $20,381
| Taxable income (2026) | Yukon rate |
|---|---|
| Up to $58,523 | 6.4% |
| $58,523 to $117,045 | 9% |
| $117,045 to $181,440 | 10.9% |
| $181,440 to $258,482 | 12.93% |
| $258,482 to $500,000 | 12.8% |
| Over $500,000 | 15% |
Basic personal amount: $16,452
CPP is a mandatory contribution on employment earnings between a lower and upper limit. It has two tiers as of 2024: base CPP (on earnings up to the Year's Maximum Pensionable Earnings, YMPE) and CPP2 (on earnings between the YMPE and the Year's Additional Maximum Pensionable Earnings, YAMPE).
| Figure | 2026 value |
|---|---|
| Year's Basic Exemption | $3,500 |
| Year's Maximum Pensionable Earnings (YMPE) | $74,600 |
| Year's Additional Maximum Pensionable Earnings (YAMPE) | $85,000 |
| Base CPP employee rate | 5.95% |
| CPP2 employee rate | 4% |
| Maximum employee base CPP contribution | $4,230.45 |
| Maximum employee CPP2 contribution | $416 |
| Maximum combined (base + CPP2) | $4,646.45 |
| Self-employed base CPP rate | 11.9% (both halves) |
| Self-employed CPP2 rate | 8% (both halves) |
Earnings below $3,500 are exempt from CPP. Base CPP applies on the portion of earnings between $3,500 and $74,600. CPP2 applies on the portion between $74,600 and $85,000. Earnings above $85,000 are not subject to any CPP contribution.
Quebec note: Quebec residents contribute to the Quebec Pension Plan (QPP) instead of CPP. The Quebec calculator uses QPP-specific rates — see the QPP/QPIP section below for full details.
Source: CRA — CPP contribution rates, maximums, and exemptions
EI premiums are a flat-rate deduction on insurable earnings up to an annual cap. Quebec pays a lower EI rate because it administers its own parental insurance plan (QPIP) separately.
| Figure | 2026 value |
|---|---|
| Maximum insurable earnings | $68,900 |
| Employee rate (outside Quebec) | 1.63% |
| Employee rate (Quebec) | 1.30% |
| Maximum employee premium (outside Quebec) | $1,123.07 |
| Maximum employee premium (Quebec) | $895.70 |
| QPIP rate (Quebec employees) | 0.430% |
| QPIP maximum insurable earnings | $103,000 |
| Maximum QPIP premium | $442.90 |
Source: Canada.ca — EI premium rates and maximums · Conseil de gestion de l'assurance parentale (QPIP)
Quebec uses a distinct payroll deduction structure that differs from all other provinces in four ways: QPP instead of CPP, QPIP as an additional deduction, a reduced EI rate, and a 16.5% reduction on basic federal tax (the federal abatement).
| Figure | 2026 value |
|---|---|
| Year's Basic Exemption | $3,500 |
| Year's Maximum Pensionable Earnings (YMPE) | $74,600 |
| Year's Additional Maximum Pensionable Earnings (YAMPE) | $85,000 |
| QPP base employee rate | 5.30% |
| QPP enhanced (additional) employee rate | 1.00% |
| Combined QPP employee rate (base + enhanced) | 6.30% |
| Maximum combined QPP contribution (tier 1) | $4,479.30 |
| QPP2 employee rate | 4.00% |
| Maximum QPP2 contribution | $416.00 |
The QPP base rate (5.30%) generates a non-refundable tax credit — mirroring how federal CPP base is treated. The QPP enhanced rate (1.00%) and QPP2 (4.00%) are deductible from taxable income for both federal and Quebec provincial tax purposes.
| Figure | 2026 value |
|---|---|
| QPIP employee rate | 0.430% |
| QPIP maximum insurable earnings | $103,000 |
| Maximum QPIP employee premium | $442.90 |
| EI employee rate (Quebec) | 1.30% |
| EI maximum insurable earnings | $68,900 |
| Maximum EI employee premium (Quebec) | $895.70 |
Quebec residents receive a 16.5% reduction on their basic federal income tax — the amount of federal tax after the BPA non-refundable credit has been applied. The abatement is applied after the credit and before any other adjustments. This reduces federal tax meaningfully: at $80,000 gross, the abatement saves approximately $1,663.
| Figure | 2026 value |
|---|---|
| Federal abatement rate | 16.5% |
| Applied to | Basic federal tax (after BPA credit) |
QPP1 = (min(gross, $74,600) − $3,500) × 6.30% [floor at 0, max $4,479.30]
QPP2 = (min(gross, $85,000) − $74,600) × 4.00% [floor at 0, max $416.00]
QPIP = min(gross, $103,000) × 0.430% [max $442.90]
EI = min(gross, $68,900) × 1.30% [max $895.70]
Taxable income = gross − (QPP enhanced 1% amount + QPP2) [both are deductible]
Quebec provincial tax = calcTax(taxable income, Quebec brackets, BPA $18,952)
Basic federal tax = calcTax(taxable income, federal brackets, BPA $16,452)
Federal abatement = basic federal tax × 16.5%
Net federal tax = basic federal tax − abatement
Total deductions = QPP1 + QPP2 + QPIP + EI + provincial tax + net federal tax
Net pay = gross − total deductions
| Taxable income (2026) | Quebec rate |
|---|---|
| Up to $52,841 | 14% |
| $52,841 to $105,668 | 19% |
| $105,668 to $128,583 | 24% |
| Over $128,583 | 25.75% |
Quebec basic personal amount (2026): $18,952. Thresholds indexed 2.05% from 2025 values. Confirm exact thresholds against Revenu Québec publications before use in payroll.
Sources: Retraite Québec — QPP contributions 2026 · Revenu Québec — QPIP rates 2026 · Department of Finance — Quebec Abatement · CRA — T4032-QC Payroll Deductions Tables, January 2026
The CCB is a tax-free monthly payment calculated using a family's Adjusted Family Net Income (AFNI) and the number and age of children. Benefits run July to June and are recalculated each year based on the prior year's tax return.
| Benefit year | Max per child under 6 | Max per child 6–17 |
|---|---|---|
| July 2025 – June 2026 | $7,997 | $6,748 |
| July 2026 – June 2027 | $8,157 | $6,883 |
| Benefit year | Tier 1 threshold (AFNI) | Tier 2 threshold (AFNI) |
|---|---|---|
| July 2025 – June 2026 | $37,487 | $81,222 |
| July 2026 – June 2027 | $38,237 | $82,847 |
| Children | Tier 1 rate | Tier 2 rate |
|---|---|---|
| 1 child | 7.0% | 3.2% |
| 2 children | 13.5% | 5.7% |
| 3 children | 19.0% | 8.0% |
| 4 or more | 23.0% | 9.5% |
| Figure | 2025–26 value | 2026–27 value |
|---|---|---|
| Max CDB per eligible child | $3,411/year | $3,480/year |
| CDB phase-out threshold | $81,222 | $82,847 |
| CDB phase-out rate (1 DTC child) | 3.2% | 3.2% |
| CDB phase-out rate (2+ DTC children) | 5.7% | 5.7% |
maxBenefit = (childrenUnder6 × maxUnder6) + (children6to17 × max6to17)
Select tier1Rate and tier2Rate based on totalChildren (see table above).
If AFNI ≤ tier1Threshold: reduction = 0.
If AFNI between tier1Threshold and tier2Threshold: reduction = tier1Rate × (AFNI − tier1Threshold).
If AFNI > tier2Threshold: reduction = tier1Rate × (tier2Threshold − tier1Threshold) + tier2Rate × (AFNI − tier2Threshold).
federalCCB = max(0, maxBenefit − reduction).
CDB = max(0, dtcChildren × cdbMax − cdbPhaseOutRate × max(0, AFNI − cdbThreshold)).
combined = federalCCB + CDB. If shared custody: divide combined by 2.
Sources: CRA — CCB calculation sheet, July 2025–June 2026 · CRA — How much CCB can you get · CRA — T4114 Canada Child Benefit (includes CDB)
Our calculator applies the rules currently in effect:
Personal capital gains: 50% inclusion rate on the full gain.
Principal residence exemption: gains on the sale of your principal residence remain fully exempt, subject to CRA rules.
Capital losses: allowable capital losses (50% of the realized loss) can be applied against taxable capital gains in the current year, carried back three years, or carried forward indefinitely.
Source: CRA — Capital gains
For all provinces except Quebec, the take-home pay calculator runs:
Apply the CPP basic exemption to gross employment income.
Calculate base CPP at 5.95% on earnings between $3,500 and the YMPE, capped at the YMPE.
Calculate CPP2 at 4% on earnings between the YMPE and YAMPE, capped at YAMPE.
Calculate EI at the employee rate on insurable earnings up to the EI maximum.
Calculate federal tax by applying federal brackets progressively to taxable income, then subtracting the BPA-based non-refundable credit (BPA × lowest-bracket rate).
Calculate provincial tax by applying the selected jurisdiction's brackets and BPA the same way, plus any applicable surtax or health premium.
Sum federal tax, provincial tax, base CPP, CPP2, and EI. Subtract from gross to get net.
For Quebec, a separate algorithm applies — see the QPP/QPIP section above.
Both algorithms match the structure the CRA and Revenu Québec use in payroll deductions formulas, with two simplifications: we assume a single-employer, full-year employment scenario, and we don't apply claim codes from a TD1/TP-1015 other than the basic personal amount. Users with non-standard situations should use the CRA's Payroll Deductions Online Calculator (PDOC) or Revenu Québec's WebRAS.
Source for the underlying formulas: CRA — 2026 Payroll Deductions Formulas — 122nd Edition
TD1 claim codes other than the basic personal amount (no spousal amount, disability amount, tuition, or pension amount).
RRSP contributions (the take-home pay calculator does not reduce taxable income for RRSP).
Employer-side deductions: group benefits, union dues, pension adjustments, parking, etc.
The Canada Employment Amount (CEA) credit on federal payroll tax. Our calculator under-applies this by roughly $50/year in refunded tax.
Provincial surtaxes and health premiums are included where they affect payroll (Ontario health premium), but provincial credits claimed on a return rather than at source are not.
The Quebec calculator does not model self-employment QPP rates (11.8% base), which differ from employee rates. Only employment income is modelled.
The numbers our calculators produce are good estimates for planning — typically within 1–2% of the CRA's PDOC result for a standard employment scenario. They are not official payroll figures and should not be used for that purpose.
The RRSP Tax Refund Calculator estimates the income tax savings from an RRSP contribution. An RRSP contribution is a deduction from taxable income under Income Tax Act s. 146. The calculator computes tax owing with and without the deduction using the same progressive bracket engine as the take-home pay calculator, then returns the difference as the estimated refund.
Contribution limits (2026): The annual RRSP dollar limit is $33,810. The general rule is 18% of prior-year earned income, up to the dollar limit. Income required to reach the cap: $187,833 ($33,810 ÷ 18%). The calculator warns if the entered contribution exceeds 18% of entered income, but does not enforce the limit — actual room depends on unused prior-year room shown on the Notice of Assessment.
Bracket crossings: The refund is computed by subtraction rather than by multiplying the contribution by a single marginal rate. This correctly handles cases where the contribution spans a bracket boundary (e.g. a $20,000 contribution from someone earning $130,000, which crosses the $117,750 federal threshold).
Quebec abatement: For Quebec residents, federal tax is multiplied by (1 − 16.5%) = 83.5% on both the with-RRSP and without-RRSP sides before computing the difference. The refund itself is not separately affected; the totals displayed are accurate after abatement.
Sources: CRA — MP, RRSP, DPSP, TFSA limits 2026 ($33,810 dollar limit); Income Tax Act s. 146 (18% rule); CRA T4040 (RRSPs and other registered plans for retirement).
The RRSP Retirement Projection Calculator models RRSP growth using a constant nominal return rate. The formula applied each year is:
balance = (balance + contribution) × (1 + returnRate)
Contributions are assumed at the start of each year. Inflation adjustment uses:
balanceRealDollars = balance / (1 + inflationRate)^years
Default assumptions:
Return rate: 6% nominal — reflects FP Canada's 2024 Projection Assumption Guidelines recommendation of 6.1% for a balanced (50/50 stock/bond) portfolio.
Inflation rate: 2% — Bank of Canada's target inflation rate.
Annual contribution growth: 0% — user can increase to model salary-linked contribution increases.
No management expense ratio (MER) deducted by default. Subtract your fund's MER from the return rate to account for fees.
No tax on withdrawal modelled. RRSP withdrawals are fully taxable as income.
No RRIF minimum withdrawal rules modelled.
Return is fixed (no Monte Carlo simulation, no sequence-of-returns variance).
Sources: FP Canada — Projection Assumption Guidelines 2024 (6.1% balanced portfolio nominal return); Bank of Canada — inflation control target (2%); CRA — RRIF minimum withdrawal rules (not modelled, noted for disclosure).
2026-05-19 — Added RRSP Tax Refund Calculator (/rrsp-tax-refund) and RRSP Retirement Projection Calculator (/rrsp-retirement-calculator). Added Quebec take-home pay calculator with QPP (6.30% combined rate), QPP2, QPIP (0.430% on $103,000), Quebec EI rate (1.30%), 16.5% federal abatement, and 2026 Quebec brackets/BPA. Added Canada Child Benefit calculator covering July 2025–June 2026 and July 2026–June 2027 benefit years, including Child Disability Benefit and shared custody.
2026-01-03 — Updated federal brackets (14% first bracket), BPA, CPP YMPE/YAMPE, CPP2 rate and maximum, EI maximum insurable earnings and premium rate for the 2026 tax year. Sources verified against CRA T4032 (published December 2025) and Service Canada EI premium announcement.
2025-07-01 — Lowest federal bracket reduced from 15% to 14% per legislation tabled May 2025; calculator updated within 24 hours.
2024-06-25 — Capital gains inclusion rate adjustments handled per CRA guidance in effect that date.
