What taxes are deducted in Canada?

Federal income tax, provincial income tax, CPP (pension), and EI (employment insurance).

Do taxes vary by province?

Yes, each province has its own tax rates and brackets in addition to federal taxes.

Salary After Tax Calculator by Country

How Salary After Tax is Calculated in Canada

Canada has a dual tax system where you pay both federal and provincial income taxes. Additionally, you contribute to the Canada Pension Plan (CPP) and Employment Insurance (EI) programs.

Federal Income Tax

Canada uses a progressive federal tax system with several brackets. Currently, there is a basic personal amount which you can earn tax-free at the federal level.

Provincial Income Tax

Each province and territory has its own tax rates and brackets. Provincial taxes are calculated separately and added to federal taxes.

Canada Pension Plan (CPP)

CPP contributions are a percentage of your pensionable earnings. This mandatory contribution helps fund your retirement pension, disability benefits, and survivor benefits.