Canada Take-Home Pay Calculator (2025)

How Canadian take-home pay is calculated

Federal tax is charged in slices: 14.5% (the 2025 blended rate), 20.5%, 26%, 29% and 33%. A basic personal amount of $16,129 reduces the tax. CPP is 5.95% of earnings between $3,500 and $71,300, plus 4% on earnings up to $81,200. EI is 1.64% of earnings up to $65,700.

Provincial tax

Each province has its own bands. This tool uses a flat rate you choose on income above about $12,000, so it is an estimate. Ontario, for example, is near 9% for mid incomes; Alberta and British Columbia are lower or higher depending on income.

RRSP

RRSP contributions reduce taxable income, so they lower income tax. CPP and EI are still charged on the full salary.

Tax year: Canada 2025. Rates and limits are updated every year. Source: Canada Revenue Agency tax rates. Last reviewed November 2026.

Tips and common mistakes

• Try 7% to 12% for the provincial rate, depending on your province.
• A higher RRSP percentage lowers tax now and saves for later.
• Use your payslip to confirm the final amount.

Learn more

• How Income Tax Brackets Really Work