What the law says
The Canadian tax year is the calendar year, and the figures below are the 2026 rates as the calculator models them. Your employer withholds income tax, CPP or QPP and EI from each payslip, and you file a return by 30 April the following year. Tax is charged on residency, not on visa type. Permanent residents and workers who make Canada their home are residents for tax and pay on worldwide income. In the year you arrive you are normally a part-year resident, taxed from the date you establish residential ties.
Federal income tax rates
Federal tax applies to taxable income, which is pay less the deductible CPP enhancement. There is no deduction for the first dollars. Instead non-refundable credits, calculated at the lowest rate of 14%, reduce the tax. They include the basic personal amount of about C$16,450, the Canada employment amount, and your CPP and EI contributions.
| Taxable income | Rate |
|---|
| C$0 to C$58,523 | 14% |
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| C$58,524 to C$117,045 | 20.5% |
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| C$117,046 to C$181,440 | 26% |
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| C$181,441 to C$258,482 | 29% |
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| Over C$258,482 | 33% |
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Provincial income tax
Each province adds its own tax with its own brackets and credits. The calculator loads four: Ontario, British Columbia, Alberta and Quebec. Ontario's rates run from 5.05% to 13.16%, with a surtax on higher Ontario tax, a health premium of up to C$900 and a low-income tax reduction. British Columbia's run from 5.6% to 20.5%. Alberta's run from 8% to 15%.
Other provinces and territories are not loaded.
| Province | Lowest rate | Highest rate | First bracket ends at |
|---|
| Ontario | 5.05% | 13.16% | C$53,891 |
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| British Columbia | 5.6% | 20.5% | C$50,363 |
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| Alberta | 8% | 15% | C$61,200 |
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| Quebec | 14% | 25.75% | C$54,345 |
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CPP, CPP2 and EI
The Canada Pension Plan takes 5.95% of pay between C$3,500 and C$74,600. A second tier, CPP2, takes 4% of pay between C$74,600 and C$85,000. Employment Insurance takes 1.63% of pay up to C$68,900. The enhanced part of CPP is deducted from income, and the rest earns a tax credit, so these contributions lower your tax a little. Employers pay a matching CPP on top.
Quebec: a separate system
Quebec residents file two returns, one federal and one with Revenu Québec, and the province collects its own income tax. Quebec has its own pension plan (QPP at 6.30%, QPP2 at 4%), a lower EI rate of 1.30% and a parental insurance plan (QPIP at 0.430%). Federal tax is reduced by 16.5% for Quebec residents, and Quebec adds a 6% deduction for workers, up to C$1,450. The brackets run from 14% to 25.75%. Quebec's work premium, solidarity credit and drug insurance premium are not included.
Sources
- Canada Revenue Agency, federal rates, CPP, EI and filing deadlines
- Revenu Québec, Quebec rates, QPP and QPIP
- Ontario Budget, Ontario rates, health premium and credits
- Government of British Columbia, BC rates and credits
- Immigration, Refugees and Citizenship Canada, permanent residence and work permits
How to pay less tax, legally
These are mainstream, legal ways to reduce Canadian tax. Which ones apply depends on your income and how long you stay.
Registered Retirement Savings Plan (RRSP)
Suits: employees who expect a higher tax rate now than when they withdraw, in particular above the 20.5% federal bracket. A contribution is deducted from taxable income, so it saves tax at your marginal rate, and growth is untaxed until withdrawal. Your room is a share of your earlier earned income, shown on your notice of assessment.
Caveat: withdrawals are taxed as income, and new arrivals have little room in their first years. If you leave Canada, withdrawals are taxed by Canada at withholding rates.
Tax-Free Savings Account (TFSA)
Suits: any resident aged 18 or over, including newcomers, whose room starts in the year they become a resident. Growth and withdrawals are tax-free.
Caveat: contributions are not deductible, so it does not reduce this year's tax, and going over the room is penalised. If you later become a non-resident, check how contributions are treated.
First Home Savings Account (FHSA)
Suits: resident first-time home buyers. Contributions are deductible like an RRSP, and withdrawals for a qualifying home purchase are tax-free.
Caveat: you need to be a resident and a first-time buyer, with limits on yearly and lifetime contributions. Check the CRA rules first.
Group RRSP with employer matching
Suits: employees whose employer matches contributions. The match is extra pay for your retirement, and your own contributions are deductible.
Caveat: some plans lock in money or require a vesting period. Read the plan terms.
Frequently asked questions
How much tax do I pay on C$90,000 in Canada?
It depends on the province. In Ontario about C$22,803 in tax and contributions, leaving about C$67,197. In British Columbia you keep about C$68,193, in Alberta about C$67,509 and in Quebec about C$63,235. Try your own figure in the Global Income Tax Calculator.
Why does Quebec have a separate tax return?
Quebec collects its own provincial income tax through Revenu Québec, while every other province's tax is collected by the CRA with the federal return. Quebec residents therefore file two returns. In exchange the federal tax is reduced by 16.5%, and Quebec has its own plans: QPP instead of CPP, QPIP for parental leave, and a lower EI rate. On C$90,000 the Quebec combination is about C$3,962 higher than Ontario's.
What are CPP, CPP2 and EI, and are they taxes?
They are payroll contributions, deducted from every payslip. CPP is a pension plan: 5.95% of pay between C$3,500 and C$74,600. CPP2 is a second tier of 4% on pay between C$74,600 and C$85,000, and EI is 1.63% up to C$68,900. You build pension entitlement, and EI covers loss of work. They are not income tax, but they reduce income tax through credits and a deduction. Temporary workers still pay them.
When is the Canadian tax deadline, and will I get a refund?
Most people file by 30 April for the previous calendar year. Employers withhold tax during the year, and your return compares that with your actual tax, so if you paid too much you get a refund. RRSP contributions, tuition and other items that lower tax can create a refund. If you owe, payment is also due by 30 April.
The calculator shows a full year of tax, which matches the final bill, not each payslip.
Do I pay Canadian tax in the year I arrive?
Usually you are a part-year resident, taxed on worldwide income from the date you become resident and not on earlier income. Some tax credits are prorated. The calculator assumes a full year in one job, so it overstates a part year. Check your status with the CRA.
What is the difference between an RRSP and a TFSA?
An RRSP gives a deduction now and taxes withdrawals later, so it helps if your tax rate is higher now. A TFSA gives no deduction but all growth and withdrawals are tax-free, so it helps flexibility. Many people use both. The calculator does not apply either, so contributions are an extra saving over the figures shown.
Why is Ontario's tax more than the rate table suggests?
Ontario adds a surtax on higher amounts of Ontario tax and a flat Ontario Health Premium of up to C$900, which on C$90,000 is C$750. Both are charged on top of the rates, which raises the effective rate. At lower incomes Ontario also reduces tax through a tax reduction and the LIFT credit, which the calculator includes.