What are the CPP deduction rates for 2026?

For 2026, the CPP contribution rate remains 5.95% on pensionable earnings between $3,500 and $71,300. The maximum annual employee contribution is $4,034.10. CPP2 (enhanced) applies at 4% on earnings between $71,300 and $81,900. Employers match the employee CPP contribution dollar-for-dollar.

What is the EI premium rate for 2026?

The 2026 EI premium rate is 1.64% of insurable earnings for employees outside Quebec, up to maximum insurable earnings of $65,700. The maximum annual employee EI premium is $1,077.48. Quebec residents pay a reduced rate of 1.31% because Quebec operates its own parental insurance plan (QPIP). Employers pay 1.4 times the employee EI premium.

How do I calculate payroll deductions in Canada?

To calculate Canadian payroll deductions: (1) Annualize the employee's gross pay by multiplying by pay periods per year. (2) Calculate CPP at 5.95% on earnings between $3,500 and $71,300. (3) Calculate EI at 1.64% on earnings up to $65,700. (4) Calculate federal and provincial income tax using the graduated bracket rates minus the Basic Personal Amount credit. (5) Divide all annual amounts by pay periods per year to get per-period deductions. CRA's PDOC tool at canada.ca provides official amounts.

What is PDOC (Payroll Deductions Online Calculator)?

PDOC is CRA's free Payroll Deductions Online Calculator at canada.ca/en/revenue-agency/services/e-services/e-services-businesses/payroll-deductions-online-calculator.html. It calculates the exact CPP, EI, and income tax deductions to withhold from employee pay using official CRA rates. It is the authoritative source for payroll deductions — our calculator provides a quick estimate while PDOC gives the exact statutory amount.

How do I calculate payroll deductions in Ontario?

Ontario payroll deductions use the same federal CPP (5.95%) and EI (1.64%) rates as all provinces. The difference is provincial income tax: Ontario uses its own graduated bracket rates starting at 5.05% up to 13.16% for the provincial portion. Ontario also has a Health Premium for employees earning over $20,000. Use our payroll calculator and select 'Ontario (ON)' to estimate your deductions instantly, or use CRA's PDOC for the exact statutory amount.

How do I calculate payroll deductions in BC (British Columbia)?

BC payroll deductions use the same federal CPP and EI rates as all provinces. Provincial income tax in British Columbia starts at 5.06% and rises to 20.5% at the top bracket. Note that BC has an Employer Health Tax (EHT) — employers with BC payroll over $500,000 pay an additional 1.95% on the amount over $1 million. Use our payroll calculator and select 'British Columbia (BC)' to estimate employee deductions.

What is the Alberta payroll tax rate?

Alberta has no provincial payroll tax — unlike BC (Employer Health Tax) and Ontario (Employer Health Tax), Alberta employers pay only the federal CPP employer match (5.95%) and EI employer premium (1.4× the employee rate). Provincial income tax in Alberta starts at 10% for the employee, making Alberta one of the lowest-tax provinces for employees and employers alike.

What is the difference between CPP and CPP2?

CPP is the base Canada Pension Plan contribution — 5.95% on pensionable earnings between $3,500 and $71,300. CPP2 is the enhanced second additional contribution introduced in 2024 — 4% on earnings between $71,300 and $81,900 (Year's Additional Maximum Pensionable Earnings). CPP2 provides a higher earnings-replacement rate at retirement for higher earners. Both employee and employer contribute equally to both CPP and CPP2.

What is a CRA remittance schedule and how often must I remit payroll deductions?

CRA remittance frequency depends on your average monthly withholdings from 2 years prior: Quarterly remitters (under $3,000/month average) remit 4 times per year. Regular remitters ($3,000–$25,000) remit monthly by the 15th of the following month. Accelerated Threshold 1 ($25,000–$100,000) remit twice monthly. Accelerated Threshold 2 (over $100,000) remit within 3 business days after each pay. Our calculator automatically determines your remittance type and schedule based on your inputs.

How much income tax is deducted from my paycheck in Canada?

Income tax deducted from a Canadian paycheck depends on your province and annual salary. At $60,000 annual income, federal income tax is approximately $8,000–$9,000. Provincial tax varies widely: Alberta adds roughly $5,000, Ontario roughly $6,200, BC roughly $5,800. Combined with CPP ($3,413) and EI ($1,077), total deductions on a $60,000 salary range from about $17,000 in Alberta to $20,000+ in Quebec. Use our payroll calculator to get a precise estimate for your province and pay frequency.

Free CRA Payroll Calculator 2026 | Canada Payroll Deductions

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Payroll Deductions Calculator

Estimates only. Uses 2025 CRA rates. Provincial income tax uses Alberta exact brackets; other provinces use approximate combined rates. For official payroll deductions, use CRA's Payroll Deductions Online Calculator (PDOC).

Province / Territory

Pay Frequency

Monthly Gross Salary ($)

Enter your gross monthly salary before any deductions.

Federal Basic Personal Amount ($) Default: $16,129 for 2025

Other Pre-Tax Deductions / Period ($) Optional — RRSP, union dues, etc.

Net Pay Per Period

—

Per Pay Period

Annual Summary

📋 Employer Remittance Summary — PD7A Style

Item	Employee	Employer	Total

Alberta Payroll Calculator for Small Business

Calgary and Alberta small businesses use our payroll calculator to estimate CPP, EI, and income tax deductions for each pay period. Alberta is the only major province with no provincial payroll tax — employers pay only federal CPP and EI remittances, making Alberta one of Canada's most employer-friendly provinces for payroll costs.

2026 Canadian Payroll Deduction Rates

Deduction	Rate	Maximum (Annual)
CPP Employee	5.95%	$4,034.10
CPP2 (Enhanced)	4.00%	$342.00
EI (Outside QC)	1.64%	$1,077.48
EI (Quebec)	1.31%	$860.67
CPP Employer Match	5.95%	$4,034.10

CPP Pensionable Earnings 2026

Basic exemption: $3,500 per year
Maximum pensionable earnings (CPP): $71,300
CPP2 applies on earnings $71,300–$81,900
Rate: 5.95% employee + 5.95% employer

EI Insurable Earnings 2026

Maximum insurable earnings: $65,700
Employee rate: 1.64% (1.31% Quebec)
Employer rate: 1.4× employee premium
Self-employed persons cannot collect regular EI

Federal Basic Personal Amount 2026

The 2025 federal Basic Personal Amount (BPA) is $16,129. This reduces federal income tax for all Canadian taxpayers. Enter your actual TD1 claim amount if different.

Using This Calculator

This calculator annualizes your per-period gross pay, then calculates annual CPP, EI, and income tax based on that annualized figure. The annual totals are then divided by your pay frequency to get the per-period deductions. It is a planning estimate — CRA's PDOC tool gives official deduction amounts.

Ontario Payroll Calculator

Ontario employees pay the same federal CPP and EI rates as all Canadians, plus Ontario provincial income tax — starting at 5.05% up to 13.16% — and an Ontario Health Premium for annual earnings over $20,000. Select Ontario (ON) in the province dropdown above to calculate Ontario payroll deductions instantly.

Ontario lowest bracket: 5.05% on income up to $51,446
Ontario top rate: 13.16% on income over $220,000
Ontario Health Premium: $0–$900/year depending on income
No Ontario employer payroll tax under $5M payroll (EHT exemption)
Use our calculator for Ontario weekly, bi-weekly, semi-monthly, or monthly deductions

BC Payroll Deductions Calculator

British Columbia payroll deductions include federal CPP and EI plus BC provincial income tax — starting at 5.06% up to 20.5%. BC employers with payroll over $1 million also pay the BC Employer Health Tax (EHT) at 1.95%. Select British Columbia (BC) in the dropdown above to estimate BC payroll deductions.

BC lowest bracket: 5.06% on income up to $45,654
BC top rate: 20.5% on income over $240,716
BC EHT: 1.95% on payroll over $1M (employer cost only)
Same federal CPP and EI rates as all other provinces
Use our calculator for BC bi-weekly, weekly, or monthly pay deductions

Canadian Payroll Deductions Quick Reference 2026

Province	Lowest Rate	Top Rate	Employer Tax?
Alberta (AB)	10.00%	20.0%	None
Ontario (ON)	5.05%	13.16%	EHT (>$1M)
British Columbia (BC)	5.06%	20.5%	EHT (>$1M)
Quebec (QC)	14.00%	25.75%	HSF levy
Saskatchewan (SK)	10.50%	14.50%	None
Manitoba (MB)	10.80%	17.40%	HET (>$2.25M)

Payroll Deductions FAQ — Canada 2026

Common questions about Canadian payroll deductions, CRA rates, and how to use this calculator.

CPP employee rate is 5.95% on pensionable earnings between $3,500 and $71,300, with a maximum annual contribution of $4,034.10. CPP2 (enhanced) adds 4% on earnings from $71,300 to $81,900. Employers match both CPP and CPP2 contributions dollar-for-dollar.

The 2026 EI employee premium rate is 1.64% on insurable earnings up to $65,700 (maximum $1,077.48/year). Quebec employees pay a reduced rate of 1.31% because Quebec runs its own parental insurance program (QPIP). Employers pay 1.4× the employee rate.

PDOC (Payroll Deductions Online Calculator) is CRA's free official tool at canada.ca that calculates exact statutory payroll deductions. Use our calculator for quick planning estimates — use PDOC when you need the official CRA amount to withhold from an employee's cheque. PDOC accounts for all TD1 claims and more complex scenarios.

Ontario uses the same federal CPP and EI rates as all provinces. Ontario provincial income tax starts at 5.05% up to 13.16%. Ontario also has a Health Premium ($0–$900/year) for employees earning over $20,000. Employers with Ontario payroll over $1M pay an Employer Health Tax (EHT). Select Ontario in the dropdown above to calculate.

No. Alberta is the only major province with no provincial payroll tax. Alberta employers pay only federal CPP remittances and EI premiums. This makes Alberta significantly cheaper for employers than Ontario (EHT), BC (EHT), or Quebec (HSF levy). The Alberta provincial income tax rate starts at 10% for employees.

Your remittance frequency depends on your average monthly withholdings: Quarterly (under $3,000/month average) — 4 times per year. Regular ($3,000–$25,000) — monthly by the 15th. Accelerated Threshold 1 ($25,000–$100,000) — twice monthly. Accelerated Threshold 2 (over $100,000) — within 3 business days. Our calculator shows your remittance type automatically.

The 2026 federal Basic Personal Amount is $16,129. This is the amount of income on which Canadians pay no federal income tax. The BPA generates a non-refundable tax credit of $2,419 (15% × $16,129) that reduces federal income tax owing. All employees should claim the full BPA on their TD1 form unless they have multiple employers.

At $60,000 annual salary in Alberta, bi-weekly deductions are approximately: CPP $262, EI $83, income tax $560 — leaving a net pay of roughly $2,095/bi-weekly period. Ontario and BC deductions run about $80–$120 higher per period due to provincial tax differences. Use our calculator to get precise amounts for your salary and province.

Free Canada Payroll Deductions Calculator 2026