Model assumptions
- A single employment income (salary). No other income (investments, rental, self-employment).
- Basic personal amounts only (federal and provincial), plus the federal Canada employment amount; no other credits or deductions (no transferred amounts, no RRSP, no union or professional dues, no child care expenses).
- Resident of the selected province all year; employed all year (except the per-pay calculator, which annualizes the amount entered).
- Actual per-pay withholding follows the CRA's per-period formula; the annual model produces the same annual totals, spread evenly across pays.
Federal tax (all provinces)
2026 federal brackets: 14% ≤ $58,523; 20.5% ≤ $117,045; 26% ≤ $181,440; 29% ≤ $258,482; 33% above. Federal basic personal amount: maximum $16,452, reduced by 1.5% of net income over $181,440 down to a floor of $14,829 (CRA formula). Non-refundable credits at 14%; Canada employment amount: the lesser of employment income and $1,501. The enhanced CPP/QPP contribution is deducted from income; the base part earns a credit at 14%.
Pension plans and Employment Insurance
CPP (outside Quebec): $3,500 exemption, maximum pensionable earnings of $74,600, rate of 5.95% (base 4.95% + enhanced 1%); additional enhanced tier of 4% between $74,600 and $85,000. QPP (Quebec): $3,500 exemption, maximum of $74,600 and additional maximum of $85,000, rate of 6.30% (base 5.30% + enhanced 1%) and 4% on the additional tier. Employment Insurance: maximum insurable earnings of $68,900; rate of 1.63% outside Quebec and 1.30% in Quebec. QPIP (Quebec only): 0.430%, maximum insurable earnings of $103,000.
2026 provincial and territorial parameters
| Province / territory | Plan | Tax brackets | Basic personal amount | Credit rate | EI |
|---|---|---|---|---|---|
| Quebec | QPP | 14.00% ≤ $54,345 · 19.00% ≤ $108,680 · 24.00% ≤ $132,245 · 25.75% above $132,245 | $18,952 | 14.00% | 1.30% |
| Ontario | CPP | 5.05% ≤ $53,891 · 9.15% ≤ $107,785 · 11.16% ≤ $150,000 · 12.16% ≤ $220,000 · 13.16% above $220,000 | $12,989 | 5.05% | 1.63% |
| British Columbia | CPP | 5.60% ≤ $50,363 · 7.70% ≤ $100,728 · 10.50% ≤ $115,648 · 12.29% ≤ $140,430 · 14.70% ≤ $190,405 · 16.80% ≤ $265,545 · 20.50% above $265,545 | $13,216 | 5.60% | 1.63% |
| Alberta | CPP | 8.00% ≤ $61,200 · 10.00% ≤ $154,259 · 12.00% ≤ $185,111 · 13.00% ≤ $246,813 · 14.00% ≤ $370,220 · 15.00% above $370,220 | $22,769 | 8.00% | 1.63% |
| Manitoba | CPP | 10.80% ≤ $47,000 · 12.75% ≤ $100,000 · 17.40% above $100,000 | $15,780, phased out between $200,000 and $400,000 of net income | 10.80% | 1.63% |
| Saskatchewan | CPP | 10.50% ≤ $54,532 · 12.50% ≤ $155,805 · 14.50% above $155,805 | $20,381 | 10.50% | 1.63% |
| Nova Scotia | CPP | 8.79% ≤ $30,995 · 14.95% ≤ $61,991 · 16.67% ≤ $97,417 · 17.50% ≤ $157,124 · 21.00% above $157,124 | $11,932 | 8.79% | 1.63% |
| New Brunswick | CPP | 9.40% ≤ $52,333 · 14.00% ≤ $104,666 · 16.00% ≤ $193,861 · 19.50% above $193,861 | $13,664 | 9.40% | 1.63% |
| Prince Edward Island | CPP | 9.50% ≤ $33,928 · 13.47% ≤ $65,820 · 16.60% ≤ $106,890 · 17.62% ≤ $142,520 · 19.00% ≤ $200,000 · 20.00% above $200,000 | $15,000 | 9.50% | 1.63% |
| Newfoundland and Labrador | CPP | 8.70% ≤ $44,678 · 14.50% ≤ $89,354 · 15.80% ≤ $159,528 · 17.80% ≤ $223,340 · 19.80% ≤ $285,319 · 20.80% ≤ $570,638 · 21.30% ≤ $1,141,275 · 21.80% above $1,141,275 | $13,094 | 8.70% | 1.63% |
| Yukon | CPP | 6.40% ≤ $58,523 · 9.00% ≤ $117,045 · 10.90% ≤ $181,440 · 12.80% ≤ $500,000 · 15.00% above $500,000 | same as the federal amount (max $16,452, phased out at high income) | 6.40% | 1.63% |
| Northwest Territories | CPP | 5.90% ≤ $53,003 · 8.60% ≤ $106,009 · 12.20% ≤ $172,346 · 14.05% above $172,346 | $18,198 | 5.90% | 1.63% |
| Nunavut | CPP | 4.00% ≤ $55,801 · 7.00% ≤ $111,602 · 9.00% ≤ $181,439 · 11.50% above $181,439 | $19,659 | 4.00% | 1.63% |
Specifics applied
- Quebec: 16.5% federal abatement on basic federal tax; QPIP; Quebec deduction for workers (6% of work income, maximum $1,450); provincial credit computed on the basic personal amount only.
- Ontario: surtax (20% over $5,818 of basic tax, + 36% over $7,446); Ontario tax reduction; LIFT credit (low-income workers tax credit); Ontario Health Premium ($0 to $900 depending on taxable income), added after credits.
- British Columbia: tax reduction credit ($690, reduced by 3.56% of net income over $25,570).
- Manitoba: basic personal amount of $15,780, phased out between $200,000 and $400,000 of net income.
- Yukon: basic personal amount mirrors the federal one; territorial employment amount included in the credit base.
- Newfoundland and Labrador: the low income tax reduction is not yet included — the 2026 amounts had not been published by the CRA at the time of this update. It will be added once published; the estimate may therefore be slightly conservative for modest incomes in that province.
- Alberta: Alberta's supplemental affordability credit is nil under this model's assumptions (single employment income); it is not applied.
Limits
- Employers withhold tax pay by pay using the CRA formula; temporary differences (rounding, irregular pays, bonuses) are settled in the tax return.
- Real-life situations (other income, special credits, support payments, taxable benefits, stock options, etc.) are not modelled.
- The displayed marginal rate is estimated on the next $100; near a maximum or threshold it may differ slightly.
Official sources
- Canada Revenue Agency — T4032 Payroll deductions tables (all provinces and territories)
- Canada Revenue Agency — Payroll deductions formulas for computer programs (T4127)
- Ontario — Low-income workers tax credit (LIFT)
- British Columbia — Tax reduction credit
- Alberta — Personal income tax
- Newfoundland and Labrador — Finance (personal income tax)
- Canada Revenue Agency — EI premium rates and maximums