How Much Tax Will I Pay in Canada? Take-Home Pay by Province (2026)

In Canada, your paycheck is reduced by four things: federal income tax, provincial income tax, CPP (Canada Pension Plan) and EI (Employment Insurance). On a $70,000 salary in 2026, all four together take between about 21% and 28% of your gross — highest in Nova Scotia and Quebec, lowest in the territories, British Columbia and Alberta. The exact figure depends on your province, so the quickest way is to pick it in the Canada paycheck calculator; this guide explains each piece.

What comes out of your paycheck

Unlike some countries, Canada has both federal and provincial income tax, plus two mandatory payroll contributions. Here is each one.

Federal tax

Federal income tax is progressive: for 2026 it is 14% on the first $58,523 of taxable income, then 20.5%, 26%, 29%, and 33% on higher bands — and only the portion in each band is taxed at that rate. Because of the tax-free basic personal amount and the low starting rate, your effective federal rate is well below your top bracket.

Provincial tax

Every province and territory adds its own income tax on top of the federal amount, and rates vary a lot. The territories, British Columbia and Alberta are the lightest, while Quebec and the Atlantic provinces are the heaviest. This is the main reason take-home pay differs across Canada for the same salary.

CPP and EI

Two payroll contributions come out of nearly every paycheck: CPP at 5.95% of earnings between $3,500 and $74,600 (plus a second 4% contribution on earnings between $74,600 and $85,000) and EI at 1.63% of earnings up to $68,900. They fund your future pension and employment insurance, and they stop once you hit the yearly caps.

Take-home pay by province

What a $70,000 salary nets in 2026 after federal tax, provincial tax, CPP (or QPP) and EI, for an employee claiming only the basic personal amounts. These come from the same engine as our calculators, which follows CRA’s payroll deduction formulas:

Province or territory	Take-home / year	Total deducted
Nunavut	$55,426	20.8%
Northwest Territories	$54,444	22.2%
Yukon	$54,355	22.4%
British Columbia	$54,348	22.4%
Alberta	$54,107	22.7%
Ontario	$53,786	23.2%
Saskatchewan	$52,669	24.8%
New Brunswick	$52,042	25.7%
Manitoba	$51,910	25.8%
Newfoundland and Labrador	$51,703	26.1%
Prince Edward Island	$51,384	26.6%
Quebec	$51,045	27.1%
Nova Scotia	$50,496	27.9%

The gap between the lightest and heaviest jurisdiction is about $4,900 a year on the same $70,000. Two things surprise people: British Columbia edges out Alberta at this income, because B.C.’s rates on middle incomes are lower even though Alberta’s basic personal amount is larger; and Alberta only pulls clearly ahead of B.C. above roughly $150,000.

Enter your own salary and province in the paycheck calculator (hourly or salary) for a precise figure with the full breakdown.

FAQ

How much tax do I pay in Ontario? On a $70,000 salary in 2026, about 23% of gross goes to federal tax, Ontario tax (including the Ontario Health Premium), CPP and EI combined, leaving roughly $53,800. The calculator gives your exact take-home.

Which province has the lowest income tax? Among the provinces it depends on your income: British Columbia leaves you slightly more than Alberta on a $70,000 salary, while Alberta comes out ahead on higher incomes from roughly $150,000. Nunavut is the lightest jurisdiction overall.

Is CPP or EI deducted from every paycheck? Yes, until you reach the annual maximum for each. After that, they stop for the rest of the year.

Does Quebec work differently? Yes. Quebec collects its own income tax, uses QPP instead of CPP (6.3%), charges a lower EI rate (1.30%) and adds QPIP premiums (0.43%); in return, federal tax is reduced by a 16.5% abatement. Our Quebec calculator applies all of these.