Canada Tax Calculator (2025, federal + CPP + EI)
Live- Estimates use 2025 CA tax tables. Consult a tax professional before filing.
In Canada, your gross salary and your take-home pay sit on opposite sides of two federal layers and one provincial one. Federal income tax uses five brackets starting at 15 percent, the Canada Pension Plan takes 5.95 percent on most pensionable earnings, and Employment Insurance premiums claim another 1.66 percent up to the annual cap. For a typical salary in the $50,000 to $120,000 range, the federal and CPP-EI bite alone runs about 22 to 28 percent of gross before provincial tax kicks in.
This calculator uses the 2025 federal brackets and the enhanced Basic Personal Amount of $16,129, applied as a non-refundable credit at the 15 percent rate. It also computes CPP base (5.95 percent from $3,500 to $71,300), the CPP2 enhanced contribution (4 percent from $71,300 to $81,200), and Employment Insurance at 1.66 percent on the first $65,700. Provincial income tax is not yet included; a province-specific layer is coming in the next sub-wave. For now the figure shown is the federal portion plus CPP and EI, which is what comes off your paycheque before any provincial deduction.
A rough sanity check: a $75,000 earner in Ontario keeps about $54,000 after federal tax, CPP, and EI. Add provincial tax (Ontario's combined federal-provincial top bracket reaches 53.53 percent for very high earners) and the all-in figure drops a few thousand more. Treat this calculator as the federal half of the picture until the provincial overlay ships.
The federal half of the picture also depends on whether you live in a province with a separate tax administration. Most provinces share collection with the CRA, but Quebec does not. For Quebec filers the calculator's federal portion overstates federal tax slightly because the Quebec Abatement reduces federal tax owed by 16.5 percent for residents who file the TP-1 with Revenu Québec. A Quebec-aware adjustment is part of the planned provincial overlay, alongside per-province surtax brackets for Ontario, British Columbia, Alberta, and the rest.
How Canadian federal tax brackets work in 2025
The 2025 federal brackets are 15 percent on the first $57,375 of taxable income, 20.5 percent on income up to $114,750, 26 percent up to $177,882, 29 percent up to $253,414, and 33 percent on anything above. These are marginal rates, so the higher bracket applies only to the portion of income that crosses each threshold. A salary of $100,000 lands you in the 26 percent marginal bracket, but your average federal rate is closer to 18 percent because most of your income is taxed at the lower bands.
The Basic Personal Amount
Every Canadian taxpayer gets the Basic Personal Amount, which is $16,129 in 2025 for incomes below $173,205 (it tapers down to $14,538 for very high earners). The BPA is implemented as a non-refundable tax credit at the lowest bracket rate of 15 percent, which works out to about $2,419 of tax reduction for most filers. The calculator applies this credit automatically after the bracket math. For incomes above $173,205 the enhanced BPA tapers; the calculator uses the full enhanced amount, which slightly understates tax for high earners.
CPP base, CPP2, and Employment Insurance
The Canada Pension Plan contribution is 5.95 percent of pensionable earnings, applied to the slice between the basic exemption of $3,500 and the year's maximum pensionable earnings (YMPE) of $71,300 in 2025. The enhanced CPP2 contribution of 4 percent then applies on earnings between the YMPE and the year's additional maximum pensionable earnings (YAMPE) of $81,200. CPP2 was introduced in 2024 as part of the CPP enhancement and is a permanent addition. Employment Insurance premiums are 1.66 percent on earnings up to $65,700, capping at $1,090.42 for the year.
RRSP contributions and how they reduce tax
RRSP contributions are deducted from your gross income before federal tax brackets are applied. A $10,000 RRSP contribution at the 26 percent marginal bracket saves $2,600 in federal tax (plus more once provincial tax is added by the provincial overlay). The 2025 RRSP dollar limit is 18 percent of earned income up to $32,490, less any prior-year pension adjustment for members of a registered pension plan. The calculator accepts an RRSP input and applies it as a deduction before the bracket math runs.
Provincial tax (coming soon)
Each province sets its own income tax brackets and rates. Ontario has a combined federal-provincial top rate of 53.53 percent. Quebec runs its own tax system in parallel (and the provincial portion is collected directly by Revenu Québec, not the CRA). Alberta has the lowest provincial rates among the larger provinces. Provincial sub-pages with full provincial brackets and surtaxes will ship in the next wave; for now this calculator shows federal income tax plus CPP and EI only.
What this calculator does not include
Provincial or territorial income tax. The Northern Residents Deduction. The Canada Workers Benefit and other refundable credits. Spousal and dependant amounts. Tax on dividends or capital gains (which are 50 percent included at most incomes, 66.67 percent above the $250,000 threshold for capital gains realized after 25 June 2024). Deductions for union dues, child-care expenses, or moving expenses. For most W-2 style salaried filers using the standard non-refundable credits, the federal number here is close to what shows on the federal portion of your T1; full T1 filing requires accounting for the items above and any provincial tax owed.
Frequently asked questions
No, not yet. The calculator currently covers federal income tax, the Basic Personal Amount credit, CPP base and CPP2 contributions, and Employment Insurance. Provincial sub-pages with each province's brackets and surtaxes will arrive in the next sub-wave. For a quick provincial estimate, add roughly 7 to 14 percent of taxable income depending on the province and bracket.
Related calculators
- Salary & TaxSalary Tax Calculator (US, 2025)Estimate your US take-home pay for 2025 with federal income tax, Social Security, Medicare, state tax, and pre-tax deductions.
- Salary & TaxUK Tax Calculator (2025/26)Estimate your UK take-home pay for the 2025/26 tax year. Includes the £12,570 personal allowance, basic/higher/additional rate bands, the 100k taper, and Class 1 National Insurance.
- FinanceCompound Interest CalculatorSee how compound interest grows your savings over time, with optional monthly contributions and adjustable compounding frequency.
- FinanceSavings CalculatorProject the balance of any savings account with a starting amount, monthly deposits, and a chosen interest rate. See what you accumulate over time.