Canada Income Tax Calculator 2026

This calculator estimates the income tax a Canadian employee pays for 2026, combining the federal tax with your province or territory's tax, and adds the CPP and EI deducted from your pay. It uses the CRA's 2026 brackets — including the new 14% lowest federal rate — and the basic personal amounts that set how much income is tax-free. Quebec is not covered because Revenu Québec runs a separate system.

How to use this tool

1. Choose the province or territory you lived in on December 31, 2026.
2. Enter your yearly employment income (T4 box 14).
3. Add other regular income such as interest or rent.
4. Enter any RRSP or FHSA deduction you plan to claim.

Formula

Tax = Σ(bracket rate × income in bracket) − lowest rate × (basic personal amount + base CPP + EI [+ employment amount]), federal and provincial separately

Taxable income is income minus RRSP/FHSA deductions and the enhanced part of CPP (the 1% first additional contribution and CPP2). The federal basic personal amount is $16,452, phasing down to $14,829 between $181,440 and $258,482 of income; provincial amounts range from $11,932 (Nova Scotia) to $22,769 (Alberta). Ontario adds a surtax of 20% of basic Ontario tax above $5,818 and 36% above $7,446, plus the Ontario Health Premium of up to $900.

Example

An Ontario employee earning $60,000 pays $3,361.75 CPP and $978 EI. Taxable income is $59,435 after the $565 enhanced CPP deduction. Federal tax is $8,380.18 on the brackets less $3,041.89 of credits = $5,338.30. Ontario tax is $3,228.77 less $846.57 of credits plus a $600 health premium = $2,982.20. Total income tax is $8,320.50, an average rate of 13.87%.