Canada · 2025
Canada Salary calculator
Use this calculator to see your take-home pay in Canada for the 2025 tax year. Enter your gross salary and it works out the federal and provincial income tax, your Canada Pension Plan (CPP) contributions and your Employment Insurance (EI) premiums, then shows what reaches your account. Ontario is the default province. You can switch to British Columbia or Alberta, each of which sets its own provincial tax brackets. Quebec is not covered here because it runs its own pension plan and tax rules.
| Gross salary | $35,000 |
| Income TaxFederal plus Ontario provincial tax, 2025 | -$3,860 |
| CPPCanada Pension Plan, employee, incl. CPP2 | -$1,874 |
| EIEmployment Insurance, employee premium | -$574 |
| Take-home pay | $28,692 |
How it works
- Start with your gross salary, the figure agreed before any deductions.
- Apply federal income tax in bands: 14.5% up to $57,375, 20.5% to $114,750, 26% to $177,882, 29% to $253,414 and 33% above that. The first $16,129 is effectively tax free through the basic personal amount.
- Apply your province tax. Ontario runs 5.05% to 13.16% across five bands and adds a surtax on higher provincial tax. British Columbia and Alberta have their own bands.
- Take off CPP: 5.95% on earnings between $3,500 and $71,300, plus a second tier (CPP2) of 4% between $71,300 and $81,200. The combined maximum for 2025 is $4,430.10.
- Take off EI: 1.64% on insurable earnings up to $65,700, so the premium is capped at $1,077.48 for the year.
- What remains is your take-home pay. Divide by 12 for a monthly figure.
Take-home = gross - (federal tax + provincial tax) - CPP - EI
Federal and provincial income tax are each charged on your salary in progressive bands, reduced by a basic personal amount credit. Ontario also adds a surtax on its own tax above set thresholds. CPP is charged on earnings between the $3,500 exemption and the ceilings, and EI on insurable earnings up to its cap. Subtract income tax, CPP and EI from your gross salary to reach take-home pay.
- Federal
- Five bands from 14.5% to 33%, less a basic personal amount up to $16,129
- Provincial
- Ontario 5.05% to 13.16% plus surtax; British Columbia and Alberta have their own bands
- CPP
- 5.95% from $3,500 to $71,300, then CPP2 4% to $81,200; combined max $4,430.10
- EI
- 1.64% on insurable earnings up to $65,700; max premium $1,077.48
Where a salary sits in Canada (2025)
| CPP first earnings ceiling (YMPE) | $71,300 | where the 5.95% rate stops |
| CPP second ceiling (CPP2 / YAMPE) | $81,200 | top of the 4% second tier |
| EI maximum insurable earnings | $65,700 | EI premium capped above this |
| Federal basic personal amount | up to $16,129 | income tested at higher incomes |
Worked example
A $70,000 salary in Ontario for 2025 leaves about $52,804 a year, roughly $4,400 a month, after about $12,162 in combined federal and Ontario income tax, $3,956.75 of CPP and $1,077.48 of EI. The effective deduction rate is about 25%.
Key facts
- Income tax in Canada is the sum of a federal charge and a separate provincial charge on the same income.
- The first $16,129 of income is effectively free of federal tax through the basic personal amount.
- CPP has two tiers in 2025: 5.95% up to $71,300, then 4% (CPP2) up to $81,200.
- EI premiums stop once your insurable earnings reach $65,700, capping the premium at $1,077.48.
- Ontario, British Columbia and Alberta each set their own brackets, so take-home pay varies by province.
Tips
- An RRSP contribution lowers your taxable income, so it cuts both federal and provincial tax at your marginal rate.
- If you change employer part way through the year, CPP and EI can over-deduct because each job restarts the annual maximum; you reclaim any excess on your tax return.
- In Ontario, watch the surtax: once your provincial tax is high enough, each extra dollar of Ontario tax is multiplied by up to 1.56.
- Alberta has the highest basic personal amount of the three provinces here, so lower salaries keep more there.
Take-home pay by province, $80,000 salary, 2025
| Province | Income Tax | CPP + EI | Take-home | A month |
|---|---|---|---|---|
| Ontario | $15,127 | $5,460 | $59,414 | $4,951 |
| British Columbia | $14,823 | $5,460 | $59,717 | $4,976 |
| Alberta | $15,633 | $5,460 | $58,907 | $4,909 |
Frequently asked questions
Which provinces does this cover?+
Federal tax plus Ontario (the default), British Columbia or Alberta. Switch the region to bc or ab to use that province. Each province sets its own brackets and basic personal amount, so the same salary gives a different result in each. Quebec is not included because it runs the Quebec Pension Plan, a federal tax abatement and a separate EI rate.
Why is the lowest federal rate shown as 14.5%?+
The government cut the lowest federal rate from 15% to 14% from 1 July 2025. Because the change applied for only half the year, the Canada Revenue Agency uses a blended rate of 14.5% on the lowest bracket for the full 2025 tax year.
What is CPP2?+
CPP2 is the second tier of Canada Pension Plan contributions. On top of the 5.95% charged up to $71,300, you pay 4% on earnings between $71,300 and $81,200 in 2025, up to an extra $396. It only affects you once your salary passes $71,300.
Does it include other deductions or credits?+
No. It applies the federal and provincial basic personal amounts only. It does not model RRSP contributions, union dues, a registered pension plan, the Canada Employment Amount or any other credit, all of which would change the tax you actually pay.
Why might my pay stub be slightly different?+
Employers calculate tax, CPP and EI for each pay period using CRA payroll tables, so per-period rounding can differ by a few dollars from an annual calculation. Taxable benefits, a mid-year raise, or starting a new job (which can reset the CPP and EI maximums) also move the figure.
How current are these rates?+
They are the federal and provincial brackets, basic personal amounts, CPP and EI figures published for the 2025 tax year, which runs from 1 January to 31 December 2025.
Things to watch
- This is an estimate for general guidance only and is not financial or tax advice. Check your own circumstances with the CRA or a qualified adviser before acting.
- Your pay stub is calculated per pay period with CRA payroll tables, so it can differ by a few dollars from this annual figure.
- Quebec is not covered. Quebec residents pay QPP rather than CPP, a lower federal EI rate, and provincial tax with a federal abatement.
- Taxable benefits, bonuses, RRSP deductions and other credits are not modelled and will change the tax you actually owe.
Sources
- Tax rates and income brackets for individuals (federal and provincial) · Canada Revenue Agency
- CPP contribution rates, maximums and exemptions · Canada Revenue Agency
- EI premium rates and maximums · Canada Revenue Agency
- British Columbia personal income tax rates · Province of British Columbia
Last updated: 2025-01-01 · Applies to 2025
This is an estimate for general guidance, not financial, tax, legal or medical advice. Figures can change and individual circumstances vary. Always confirm with the official sources listed before making decisions.
- Covers federal tax plus Ontario (default), British Columbia or Alberta. Quebec is not modelled.
- Applies the federal and provincial basic personal amounts only; no other credits or deductions.
- Social contributions are employee CPP and CPP2 plus the EI premium for provinces outside Quebec.
- Assumes a single source of employment for the full year, so the CPP and EI annual maximums apply once.
Reviewed by Vikas Dulgunde.