This Canada income tax calculator works out your 2026 federal income tax, Canada Pension Plan (CPP and CPP2) contributions and Employment Insurance (EI) premiums. It uses the new 14% lowest federal rate and the 2026 brackets indexed by 2%.
2026 federal income tax brackets
| Taxable income | Federal rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 – $117,045 | 20.5% |
| $117,045 – $181,440 | 26% |
| $181,440 – $258,482 | 29% |
| Over $258,482 | 33% |
The basic personal amount is $16,452, gradually reduced to $14,829 for incomes between $181,440 and $258,482. It is a credit at 14%, worth up to about $2,303.
2026 CPP and EI
| Contribution | Employee rate | Earnings range |
|---|---|---|
| CPP | 5.95% | $3,500 – $74,600 |
| CPP2 | 4% | $74,600 – $85,000 |
| EI | 1.63% | Up to $68,900 (max $1,123.07) |
Base CPP and EI earn a 14% tax credit, while the enhanced part of CPP and all of CPP2 are deducted from income, which is how the calculator treats them.
Worked example
On $70,000 of employment income, CPP is $3,956.75 and EI is $1,123.07. Federal income tax comes to about C$7,488, leaving C$57,432 before provincial tax.
Don’t forget provincial tax
Every province and territory adds its own income tax on top of federal tax, with its own brackets and basic personal amount. Quebec residents file a separate provincial return and pay QPP and QPIP instead of CPP, so this calculator is not designed for Quebec.
Frequently asked questions
What is the lowest federal tax rate in Canada for 2026?
14% on the first $58,523 of taxable income. It was cut from 15% on July 1, 2025, so 2026 is the first full year at 14%.
What is the basic personal amount for 2026?
$16,452 for most taxpayers, reduced gradually to $14,829 for those with net income above $181,440.
How much CPP will I pay in 2026?
5.95% of earnings between $3,500 and $74,600, up to $4,230.45, plus CPP2 of 4% on earnings between $74,600 and $85,000, up to $416.
What are EI premiums for 2026?
1.63% of insurable earnings up to $68,900, a maximum of $1,123.07 for employees outside Quebec.
Does an RRSP contribution reduce my tax?
Yes. RRSP contributions are deducted from income, lowering both federal and provincial tax at your marginal rate.
Related calculators
Sources
- CRA: Tax rates and income brackets
- CRA: CPP contribution rates and maximums
- CRA: EI premium rates and maximums
Last reviewed: October 2026 against official government sources. This calculator gives estimates for education only and is not tax advice.