About the numbers

This is an estimate, not tax advice

The calculators give an estimate for one person and one full year. They do not replace your tax return, your pay stub or an accountant. Your real tax can be different.

Where the numbers come from

• CRA, T4127 Payroll Deductions Formulas, the 122nd edition (effective January 1, 2026) and the 123rd edition (effective July 1, 2026). They give the federal and provincial tax rates, CPP, CPP2 and EI.
• Revenu Québec and the Ministère des Finances du Québec, the 2026 parameters of the personal income tax system. They give the Quebec tax, QPP and QPIP.
• CRA, GST/HST rates and Revenu Québec for the QST.
• For the mortgage: the Interest Act (compounding twice a year) and the rules and premiums of CMHC for mortgage insurance.

How the tax is calculated

The page uses the payroll formulas of the CRA with one pay period in the year. This gives the tax for the year on income from one employer, with the basic personal amounts only. It includes the federal tax, the provincial tax, CPP and CPP2 (QPP and QPP2 in Quebec), EI and QPIP (Quebec only). It also includes the Ontario surtax and the Ontario Health Premium, the Alberta supplemental credit and the BC tax reduction.

Not included

• Refundable credits and low-income tax reductions that only the tax return gives. One example is Ontario’s LIFT credit.
• Other credits, such as tuition, medical costs and donations.
• Other kinds of income: capital gains, dividends and self-employment.

Changes during 2026

Three provinces changed their tax in the middle of 2026. The July payroll tables of the CRA use values for the last six months only. This site uses the values for a full year instead.

• BC: the lowest rate is 5.60% (it was 5.06%). The basic tax reduction is $690 (it was $575).
• Newfoundland and Labrador: the basic personal amount is $13,094 (it was $11,188).
• Prince Edward Island: there is a new 20% bracket for income over $200,000.

Sales tax and mortgages

The sales tax rates are the standard rates in 2026. Some items pay a different rate or no tax. The mortgage calculator uses the CMHC premium rates and the minimum down payment rules in force since December 15, 2024. Your lender may give other numbers.

Updates

The tax tables are updated each January, when the CRA and Revenu Québec publish the new numbers.