Take-Home Pay in Canada
|Salary Before Tax|
|Salary After Tax||Enter salary|
Simply enter your annual or monthly income into the tax calculator above to find out how taxes in Canada affect your income. You'll then get a breakdown of your total tax liability and take-home pay.
- Salary Before Tax
- your total earnings before any taxes have been deducted. Also known as Gross Income.
- Salary After Tax
- the money you take home after all taxes and contributions have been deducted. Also known as Net Income.
Income Tax Breakdown
|QPIP, CPP/QPP, EI premiums|
|Total Tax Due||Enter salary|
- Total Tax Due
- the sum of all taxes and contributions that will be deducted from your gross salary.
The deductions used in the calculator assume you are not married and have no dependants. You may pay less if tax credits or other deductions apply.
Taxation in Canada
- Federal Tax
- is calculated based on a person's gross taxable income after the non-refundable tax credits have been applied (QPIP, CPP/QPP, and EI premiums). The tax is progressive (five tax brackets), it starts at 15% for incomes up to 49,020 CAD and ends at 33% for incomes greater than 216,511 CAD. This means that high-income residents pay a higher percentage than low-income residents.
- Provincial Tax
- is computed in the same way as the federal tax, but using the tax brackets, rates, and credits applicable in the respective province. The Canada Revenue Agency (CRA) collects and administers the individual income taxes for the government, except for the province of Quebec.
- QPIP, CPP/QPP, EI premiums
- are deducted by your employer directly from your pay. The CPP (Canada Pension Plan) or QPP (Quebec Pension Plan) are contributions for your retirement pension. The Employment Insurance (EI) provides you with temporary financial assistance while unemployed and looking for work.
The information presented here is based on the fiscal regulations in Canada in 2020. Visit cra-arc.gc.ca for more details.
Financial Facts About Canada
The average monthly net salary in Canada is around 2 997 CAD, with a minimum income of 1 012 CAD per month. This places Canada on the 12th place in the International Labour Organisation statistics for 2012, after France, but before Germany.
In Canada income tax is usually deducted from the gross monthly salary at source, through a pay-as-you-earn (PAYE) system. Self-employed individuals are required to file an income tax return every year. The deduction includes the Federal and Provincial income taxes.
Canada has one of the most stable business climates in the world and is regarded as an attractive investment destination, according to Forbes and Bloomberg. The World Economic Forum declared the country's banking system to be the most prosperous in the world, for seven years consecutively.
According to the Organisation for Economic Co-operation and Development (OECD), Canada is the third best country to live in the world, with the best quality of life, after Australia and Sweden. Canada is often praised for its universal health care system, its clean and friendly cities, its world-class universities, and its multicultural population.
Canada is an immigrant-friendly country with a immigration system that recognizes the importance of immigrants and their potential contribution to the Canadian society. According to official statistics, over 28% of the population was born outside the country, with most immigrants coming from China, India, and the Philippines.