Salary calculator (CA)

Federal tax is calculated progressively on your taxable income (gross salary minus any RRSP contributions) — each bracket's rate applies only to the slice of income within that band, not your entire income. The Basic Personal Amount (BPA) isn't a deduction from income; it's applied as a non-refundable credit worth the BPA multiplied by the lowest federal bracket rate, which is subtracted directly from the tax owing. For 2025 the CRA blends a 14% rate (effective 1 July) with the prior 15% rate into a single 14.5% rate for the full year, since the federal rate cut took effect mid-year.

Provincial or territorial tax is calculated the same way as federal tax — progressively, using each province's own published brackets — with its own Basic Personal Amount applied as a non-refundable credit at that province's lowest rate. Quebec residents pay provincial tax directly to Revenu Québec rather than the CRA, so as compensation they receive a federal tax abatement of 16.5% of basic federal tax, which this calculator applies and shows as a separate line. Ontario applies an additional surtax on top of provincial tax once it crosses set thresholds — this calculator applies a simplified version of that surtax.

Canada Pension Plan (CPP) contributions are 5.95% of earnings between the basic exemption ($3,500) and the Year's Maximum Pensionable Earnings (YMPE). A second tier, CPP2, adds a further 4% on earnings between the YMPE and the Year's Additional Maximum Pensionable Earnings (YAMPE) — shown as a separate line only where it applies. Employment Insurance (EI) is charged on insurable earnings up to its own annual maximum. CPP, CPP2 and EI are calculated on your full gross salary; RRSP contributions reduce income tax but not these payroll deductions.

This calculator estimates take-home pay for a typical salaried employee using CRA-published rates. It doesn't account for other tax credits or deductions beyond the Basic Personal Amount and RRSP contributions, Quebec Pension Plan (QPP) or Quebec Parental Insurance Plan (QPIP) — which replace CPP and part of EI for Quebec residents — or income from outside employment. The Ontario surtax figure is simplified. It is not a substitute for a real tax return or professional advice.