Payroll Tax Calculator (Canada)
Calculate your Canadian paycheck after CPP, EI, and income tax deductions for any province.
Enter values to see results
Fill in the form and click Calculate
Understanding Canadian Payroll Deductions
When you receive a paycheque in Canada, several mandatory deductions are taken before you get your take-home pay. Understanding these deductions helps you plan your finances and ensure your employer is withholding the correct amounts.
Mandatory Deductions
- Federal Income Tax: Based on federal tax brackets, deducted at source by your employer.
- Provincial Income Tax: Varies by province, also deducted at source.
- CPP/QPP: Canada/Quebec Pension Plan contributions for retirement benefits.
- EI: Employment Insurance premiums for unemployment benefits.
2024 CPP Contribution Rates
- Employee contribution rate: 5.95%
- Maximum pensionable earnings: $68,500
- Basic exemption: $3,500
- Maximum annual contribution: $3,867.50
2024 EI Premium Rates
- Employee premium rate: 1.66%
- Maximum insurable earnings: $63,200
- Maximum annual premium: $1,049.12
Frequently Asked Questions
How is CPP calculated in Canada?
CPP (Canada Pension Plan) contributions are calculated at 5.95% of your pensionable earnings between the basic exemption ($3,500) and the maximum pensionable earnings ($68,500 in 2024). The maximum annual contribution is $3,867.50. Quebec has the QPP with slightly different rates.
How much is EI in Canada?
Employment Insurance (EI) premiums are calculated at 1.66% of your insurable earnings up to $63,200 (2024). The maximum annual premium is $1,049.12. Quebec residents also pay QPIP (Quebec Parental Insurance Plan) premiums.
Which province has the lowest income tax?
Alberta has the lowest provincial income tax with a flat 10% rate. Nunavut and Northwest Territories also have relatively low rates. Quebec has the highest provincial taxes but offers more social services and a different tax credit system.
How can I reduce my payroll taxes in Canada?
You can reduce payroll taxes by: contributing to an RRSP (reduces taxable income), claiming eligible tax credits (disability, caregiver, tuition), using tax-free benefits offered by employers, and ensuring you claim all eligible deductions on your tax return.