Canada tax calculator: 2026 income tax and take-home pay
Canadian income tax comes in two layers: federal tax at 14% to 33% and your province or territory's tax on top, each charged in brackets, so a rate applies only to the income inside its bracket. Credits such as the basic personal amount come off the result, and CPP contributions and EI premiums are added on employment income. On a $100,000 salary in 2026 the calculator puts the total at $25,637 in Alberta, $24,724 in British Columbia and $25,173 in Ontario.
Income tax calculator
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How to use the Canada tax calculator
Enter what you earned in 2026 by type, because each type is taxed differently. The calculator opens with a $100,000 salary in Alberta; results update as you type, and your inputs are kept in the page address so you can bookmark a scenario or send it to your accountant.
Where you lived on December 31, 2026 sets your provincial tax for the whole year. All 13 provinces and territories are included, with their 2026 brackets and basic personal amounts.
Salary, wages, bonuses and tips from your T4. The calculator works out CPP contributions and EI premiums from this figure.
Net business or professional income. You pay both halves of CPP on it, and the calculator deducts the employer half from your income, as your return does.
Enter the whole gain. Half of it is added to taxable income, the 50% inclusion rate.
Enter the cash dividends you received. The calculator grosses them up by 38% (eligible) or 15% (non-eligible) and applies the federal and provincial dividend tax credits.
Pension, rental, interest and RRIF income go in other income. An RRSP deduction lowers taxable income, and the calculator shows how much tax it saves.
How to read your result
The headline is your after-tax income. Everything under it shows how the calculator got there, so you can see which part of your income is doing the damage.
After-tax income and average rate
After-tax income is the money you received less income tax, CPP contributions and EI premiums. The average rate divides that total by your income: it is the share of every dollar you actually pay. On a $100,000 salary in Alberta it is 25.6%.
Marginal rate
The marginal rate is the combined federal and provincial rate on your next dollar of ordinary income, the rate that matters for a raise, a bonus, an RRSP deduction or an extra RRIF withdrawal. On $100,000 in Alberta it is 30.5%: 20.5% federal plus 10% provincial.
Federal, provincial, CPP and EI
The bar shows federal and provincial income tax as shares of your income. The list beneath adds CPP contributions and EI premiums, which the total tax includes, and the marginal rate list splits your next-dollar rate between the two governments.
RRSP tax savings
Enter an RRSP deduction and a section appears with the federal and provincial tax it saves and the effective refund rate. A $10,000 deduction on a $150,000 salary saves $3,600 in Alberta and $4,341 in Ontario, because the deduction comes off the top of your income, at your highest rate.
The same salary in three provinces
Salary is taxed differently in each province. These are the calculator's totals for employment income alone, with CPP contributions and EI premiums included, in the three provinces OneSixty Wealth serves.
Total 2026 tax including CPP and EI, employment income only. Rounded to the dollar.
Income tax inside a financial plan
The alternative is deliberate gain harvesting. In years when income is unusually low, typically between retirement and the start of CPP, OAS, and RRIF minimums, you realize gains on purpose, pay the tax at a low rate, and reset the cost base higher. You are choosing your bracket rather than accepting one.
Kaetyn St. Hilaire, CFA, in Capital gains tax in Canada: the quiet drag on retirement income
A tax calculator answers one year. Over a lifetime, what you pay depends as much on the type of income you receive, whose return it lands on and which year it appears in. How wealthy Canadians legally pay less tax in retirement works through all three.
If you own a corporation, the question widens to salary or dividends, which the corporate tax calculator compares. Putting tax, registered accounts and timing together is the work of financial planning in Calgary with Kaetyn.
Kaetyn on YouTube: Paying Too Much in Taxes? Here's How Wealthy Canadians Legally Pay Less
Canada tax calculator questions
Answers drawn from the calculator's own rules and 2026 federal and provincial figures.
Taxable income runs through two sets of brackets: the federal rates of 14% to 33% and your province or territory's own rates. Each rate applies only to the income inside its bracket. Non-refundable credits, starting with the basic personal amount, are then subtracted, and dividend tax credits reduce the tax on dividends. The calculator adds CPP contributions and EI premiums on employment income to show your total.
14% on the first $58,523 of taxable income, 20.5% up to $117,045, 26% up to $181,440, 29% up to $258,482 and 33% above that. The federal basic personal amount is $16,452, reduced gradually to $14,829 for taxable income between $181,440 and $258,482.
Your marginal rate is the tax on your next dollar of income; your average rate is your total tax divided by your total income. Because each rate applies only to the income inside its bracket, the average rate is lower. On a $100,000 salary in Alberta the calculator shows a 30.5% marginal rate and a 25.6% average rate, with CPP and EI counted in the average.
Half of a capital gain is taxable, so a gain is taxed at half your marginal rate. Eligible dividends are grossed up by 38% and non-eligible dividends by 15%, then the federal and provincial dividend tax credits reduce the tax. Enter the amounts you actually received and the calculator does the gross-up.
It is a simplified estimate for educational purposes. It does not include provincial health premiums, the OAS recovery tax, the alternative minimum tax, income splitting, capital gains exemptions, or credits other than the basic personal amount, CPP, EI and the Canada employment amount. Use it to compare scenarios, and confirm your actual tax with your return or your accountant.
Related articles
- Capital gains tax in Canada: the quiet drag on retirement income Half the gain, your marginal rate
- Paying too much tax in retirement? How wealthy Canadians legally pay less Type, return and year
- OAS clawback and RRSP withdrawals Spending down without the clawback
- RRSP meltdown strategy Withdrawing in the low tax years
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