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Income tax & take-home pay calculator

See exactly what lands in your bank account. Enter your salary and province to get your 2025 take-home pay per year, month, or paycheque — plus a full breakdown of where every dollar of tax goes.

Show pay per
Take-home pay per year · Ontario · 2025
$62,676.94
Total deductions
$22,323
Average tax rate
26.3%
Marginal tax rate
29.6%
Where your money goes
Federal tax
$11,850
Ontario tax
$4,965
CPP
$4,430
EI
$1,077
Take-home
$62,677

2025 rates. Includes federal and provincial tax with the basic personal amount, the Ontario surtax, plus CPP and EI. Excludes provincial health premiums and credits beyond the basic personal amount — your actual return may differ.

The short answer

Take-home pay = gross salary − federal tax − provincial tax − CPP/QPP − EI. Canada taxes progressively, so your average rate is always lower than your marginal rate (the rate on your next dollar earned).

Calculate by province

Provincial rates vary widely — the same salary can differ by thousands depending on where you live.

Frequently asked questions

How is take-home pay calculated in Canada?

Start with your gross salary, then subtract federal income tax, provincial or territorial income tax, CPP (or QPP in Quebec) contributions, and EI premiums. Both federal and provincial tax are reduced by the basic personal amount, a credit everyone receives. What's left is your net, or take-home, pay.

What's the difference between average and marginal tax rate?

Your marginal rate is the tax you pay on your next dollar of income — the rate of your top bracket. Your average rate is total tax divided by total income, which is always lower because Canada's system is progressive: earlier dollars are taxed at lower rates.

Which province has the lowest income tax?

Alberta, Nunavut, and the Northwest Territories generally have the lowest provincial and territorial income tax rates, while Quebec, Nova Scotia, and Newfoundland and Labrador tend to have the highest. The gap is widest at higher incomes.

Does this calculator include all deductions?

No. It models federal and provincial tax with the basic personal amount, plus CPP/QPP and EI/QPIP. It does not include provincial surtaxes, health premiums, RRSP deductions, or other credits, so treat the result as a close estimate rather than a filed return.

Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Information may be simplified, incomplete, or out of date. Consult a licensed professional before making financial decisions. VaultNerd may receive compensation from partners featured on this site — this does not influence our editorial content.
Written by
The VaultNerd Team

Researching and writing about Canadian taxes and personal finance since 2026.

Cite this page

Income Tax & Take-Home Pay Calculator — VaultNerd” — VaultNerd, https://www.vaultnerd.com/tools/income-tax-calculator, updated August 2026.

Sources
  • CRA federal income tax rates and brackets (2025)
  • CRA provincial and territorial tax rates (2025)
  • CPP contribution rates and EI premium rates (2025)