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Canadian payroll deductions calculator

Work out the income tax, CPP or QPP, EI and QPIP taken from each paycheque in any province or territory, for weekly, bi-weekly, semi-monthly or monthly pay.

Tax year 2026 Rules checked: November 2026 How we calculate

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More options
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Net pay$1,944.45bi-weekly pay
Income tax this pay
$374.06
CPP + EI
$181.49
Net pay per year
$50,556
Where the money goes
  • Net pay$1,94478%
  • Federal tax$24310%
  • Ontario tax$1315%
  • CPP$1416%
  • EI / QPIP$412%

Bi-weekly payroll deductions · Ontario · 2026

Gross pay
$2,500.00
Federal tax
−$242.58
Ontario tax
−$131.48
CPP contributions
−$140.74
EI premiums
−$40.75
Net pay
$1,944.45
  • Assumes claim code 1 (basic personal amounts only) and the same pay every period. CPP and EI stop once the annual maximum is reached, so late-year pays can be higher.
  • Employers must use the CRA Payroll Deductions Online Calculator (PDOC) or the T4127 formulas for actual payroll.

This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency.

How payroll deductions are calculated

  1. Annualise the pay. Gross pay per period × pay periods per year (52, 26, 24 or 12), minus any RRSP or pension deducted at source.
  2. CPP: 5.95% of pensionable earnings above the $3,500 basic exemption (prorated per period), up to $74,600. CPP2: 4% between $74,600 and $85,000. In Quebec, QPP is 6.30%.
  3. EI: 1.63% of insurable earnings up to $68,900 (1.30% in Quebec), plus QPIP at 0.43% in Quebec.
  4. Federal tax: brackets from 14% to 33%, minus credits at 14% for the basic personal amount, base CPP, EI and the Canada employment amount. The enhanced part of CPP is deducted from income instead.
  5. Provincial tax: the province’s brackets and credits, plus Ontario’s surtax and health premium or BC’s tax reduction where relevant.
  6. Divide by the number of pays to get the deduction on each paycheque.

Worked example: $2,500 every two weeks in Ontario

$2,500 bi-weekly ($65,000 a year), Ontario, 2026, claim code 1

Over a year that is $65,000 of income. Each pay loses about $374.06 in income tax, $140.74 in CPP and $40.75 in EI, leaving $1,944.45.

Net pay$1,944.45bi-weekly pay
Income tax this pay
$374.06
CPP + EI
$181.49
Net pay per year
$50,556

Bi-weekly payroll deductions · Ontario · 2026

Gross pay
$2,500.00
Federal tax
−$242.58
Ontario tax
−$131.48
CPP contributions
−$140.74
EI premiums
−$40.75
Net pay
$1,944.45

The same pay in Alberta leaves $1,958.06, and in Quebec $1,853.09.

What changed in 2026

  • Federal: 14% lowest rate for the full year; brackets indexed by 2.0%.
  • CPP: YMPE $74,600 and YAMPE $85,000; maximum combined employee contribution $4,646.45.
  • EI: rate down to 1.63% (from 1.64%), maximum insurable earnings up to $68,900.
  • July 2026 updates for British Columbia, Newfoundland and Labrador and Prince Edward Island changed provincial withholding in the second half of the year. This calculator uses the full-year 2026 rates, which is what your tax return will use.

Tips for employees

  • Fill in a TD1 if you have credits beyond the basic amount (dependants, tuition, disability): it lowers the tax withheld.
  • Ask for reduced withholding with form T1213 if you make regular RRSP contributions or have large deductible expenses.
  • Two jobs? Only one employer should give you the basic personal amount; otherwise expect a balance owing.

Questions people ask

Is this the same as the CRA Payroll Deductions Online Calculator?

It uses the same structure — the CRA's T4127 formulas with claim code 1 — and the same 2026 rates. The CRA's PDOC remains the reference employers must use; small differences of a few cents can come from rounding.

Why does my paycheque go up later in the year?

CPP stops once you reach the maximum contribution ($4,230.45 in 2026) and EI stops at $1,123.07. High earners see bigger cheques once those maximums are reached.

What is CPP2?

A second CPP contribution of 4% on earnings between the YMPE ($74,600) and the YAMPE ($85,000) in 2026, up to $416. It builds a larger CPP pension.

Why is Quebec different?

Quebec employers deduct QPP instead of CPP, a lower EI rate, QPIP premiums for parental insurance and Quebec income tax under Revenu Québec's rules. Federal tax is reduced by the 16.5% Quebec abatement.

Official sources

Rules checked: November 2026.

This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency. Read the full disclaimer.