Paycheck Calculator
Calculate your take-home pay after federal taxes, provincial taxes, CPP, and EI deductions. Get accurate estimates based on 2024 Canadian tax rates.
Income Information
Your Take-Home Pay
$3,850.00
per paycheck
Deduction Breakdown
Understanding Your Paycheck in Canada
Your paycheck consists of your gross pay minus various mandatory deductions including federal and provincial income taxes, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums. Understanding these deductions helps you budget effectively and plan your finances.
Mandatory Payroll Deductions
Canada Pension Plan (CPP)
In 2024, employees contribute 5.95% of pensionable earnings between $3,500 and $68,500. The maximum annual CPP contribution is $3,867.50. CPP provides retirement, disability, and survivor benefits.
Employment Insurance (EI)
EI premiums are 1.63% of insurable earnings up to $63,200 in 2024, with a maximum premium of $1,030.16. EI provides temporary income support if you lose your job, are sick, or take parental leave.
Federal Income Tax
Federal tax rates for 2024 are progressive: 15% on the first $55,867, 20.5% on income between $55,867 and $111,733, 26% on income between $111,733 and $173,205, 29% on income between $173,205 and $246,752, and 33% on income over $246,752.
Provincial Income Tax
Each province has its own tax brackets and rates. For example, Ontario rates range from 5.05% to 13.16%, while Alberta uses rates from 10% to 15%. Always check your specific province's rates.
Factors Affecting Your Take-Home Pay
- Pay Frequency: Bi-weekly, semi-monthly, weekly, or monthly pay periods affect per-paycheck deductions
- Tax Credits: Basic personal amount and other credits reduce taxable income
- Additional Deductions: RRSP contributions, union dues, and benefits reduce net pay but may lower taxes
- Province of Employment: Provincial tax rates vary significantly across Canada
- Income Level: Higher income means higher marginal tax rates
Tips for Maximizing Take-Home Pay
- Contribute to an RRSP to reduce taxable income
- Claim all eligible tax credits and deductions
- Review your TD1 forms to ensure accurate withholdings
- Consider income splitting strategies with your spouse
- Track work-related expenses that may be deductible
Important Notes
This calculator provides estimates based on 2024 federal and provincial tax rates. Actual deductions may vary based on your specific circumstances, additional deductions, and tax credits you claim.
Tax rates and CPP/EI maximums are updated annually. Always verify current rates with the Canada Revenue Agency (CRA) for the most accurate calculations.
This tool is for estimation purposes only and should not replace professional tax advice. Consult with a tax professional for personalized guidance.