From gross to net pay: what is deducted from your pay
Gross pay is the amount before deductions; net pay is what reaches your account. Here is what happens in between in 2026, wherever you live in Canada.
Updated on October 31, 2026 · 2 min read
Federal income tax
Everywhere in Canada, you pay a federal tax and a provincial or territorial tax. Each works in brackets: only the part of your income above a threshold is taxed at the next bracket's rate.
- $0 to $58,523: 14%
- $58,523 to $117,045: 20.5%
- $117,045 to $181,440: 26%
- $181,440 to $258,482: 29%
- $258,482 and over: 33%
2026 figures, from our tax data. Sources
Credits then reduce the tax, including the federal basic personal amount, which goes up to $16,452 in 2026.
Your province's or territory's tax
Each province and territory has its own brackets and its own basic personal amount, on which no provincial tax is paid. Pick yours:
- $0 to $54,345: 14%
- $54,345 to $108,680: 19%
- $108,680 to $132,245: 24%
- $132,245 and over: 25.75%
Basic personal amount: $18,952
Quebec also has its own contribution plans: see the “In Quebec” section below.
2026 figures, from our tax data. Sources
Payroll contributions
- Canada Pension Plan (CPP): 5.95% of pay between $3,500 and $74,600, then a second contribution of 4% up to $85,000.
- Employment Insurance: 1.63% up to pay of $68,900.
- These contributions are the same in every province and territory except Quebec, which has its own plans.
In Quebec: separate plans
- Quebec Pension Plan (QPP), instead of the CPP: 6.3% of pay between $3,500 and $74,600, then a second contribution of 4% up to $85,000.
- Quebec Parental Insurance Plan (QPIP): 0.43% up to pay of $103,000.
- Employment Insurance: a reduced rate of 1.3%, because QPIP covers parental benefits.
- An abatement that reduces your federal tax by 16.5%, and a deduction for workers of 6% of work income, up to $1,450.
Average and marginal rate
The marginal rate is the one that applies to your next dollar earned. The average rate is your total tax divided by your income. Since only the part above each threshold is taxed more, the average rate is generally much lower than the marginal rate.
Take-home pay examples for 2026
Here is what our calculator gives for a few common salaries in the chosen province. Your situation may differ: run your own calculation with your salary and pay frequency.
| Annual gross salary | Annual net | Net per month |
|---|---|---|
| $30,000 | $25,352 | $2,113 |
| $40,000 | $32,088 | $2,674 |
| $50,000 | $38,824 | $3,235 |
| $60,000 | $45,329 | $3,777 |
| $75,000 | $53,965 | $4,497 |
| $100,000 | $69,585 | $5,799 |
| $125,000 | $84,544 | $7,045 |
| $150,000 | $97,850 | $8,154 |
Why your pay stub can differ
- Your employer calculates deductions pay by pay, using the payroll deduction tables.
- Other deductions can be added: pension plan, group insurance, union dues.
- CPP or QPP, EI and QPIP contributions stop once you reach the year's maximum, so your take-home pay goes up late in the year.
- Some provincial credits or reductions for modest incomes are not included: our result estimates the tax, it is not a full calculation of your return.
Related guides
Official sources
Educational estimate — not advice.