Free tool · Canada · 2026
Canadian payroll calculator
CPP, CPP2, EI, federal and provincial tax for one paycheque, in every province and territory, and what it costs the employer. Runs in your browser; nothing is saved.
This pay
So CPP and EI stop at the yearly maximum
Blank = basic personal amount
Blank = basic personal amount
Result
Gross pay
$2,500.00
Federal income tax
CRA T4127 payroll formulas (2026)
− $242.58
Provincial income tax
− $131.48
CPP
− $140.74
EI
− $40.75
Take-home pay
$1,944.45
What it costs the employer
Employer CPP
Matches the employee's contribution
$140.74
Employer EI
1.4× the employee premium
$57.05
Total cost of this pay
$2,697.79
Employer health tax, workers' compensation, vacation pay and taxable benefits are not included. An estimate, not tax advice; check against the CRA's PDOC.
How the numbers are worked out
CPP and CPP2
For 2026, CPP is 5.95% of pensionable earnings above the basic exemption ($3,500 a year, prorated per pay), up to the year's maximum pensionable earnings of $74,600. CPP2 is 4% of earnings between $74,600 and $85,000. The employer matches both. In Quebec the QPP rate is 6.30%.
EI
1.63% of insurable earnings up to $68,900 for 2026 (1.30% in Quebec, where QPIP is deducted as well). The employer pays 1.4 times the employee's premium.
Income tax
The pay is annualised, reduced by RRSP and union dues deducted at source, and taxed with the 2026 federal and provincial rates. The credits for the TD1 claim amounts, CPP, EI and the Canada employment amount are then applied, along with provincial surtaxes, tax reductions and the Ontario Health Premium where they apply, and the result is divided back to one pay.
What is not included
Vacation pay, taxable benefits, employer health tax and workers' compensation. The result is an estimate for planning; it is not tax advice.
Questions
Which formulas does this use?
The CRA's Payroll Deductions Formulas (T4127) for 2026, for every province and territory, including Quebec's QPP and QPIP. It is the same code AcboBooks uses to run Canadian payroll.
Why does it ask for pay already received this year?
CPP and EI stop once the year's maximums are reached. With the pay already received, the calculator replays the earlier pays so this paycheque shows the right contribution, including zero once the maximum is reached.
What are the 2026 CPP and EI limits?
CPP applies to earnings up to $74,600 (the YMPE), with a $3,500 basic exemption, at 5.95% each for employee and employer. CPP2 adds 4% on earnings between $74,600 and $85,000. EI applies to insurable earnings up to $68,900 at 1.63% for the employee (1.30% in Quebec), and the employer pays 1.4 times the employee premium.
What is a TD1 claim amount?
The total from the employee's federal and provincial TD1 forms. Leave the boxes blank to use the basic personal amounts, which is what most employees claim.
Should I trust this over the CRA's PDOC?
Use it to plan and to check, and compare important figures with the CRA's Payroll Deductions Online Calculator. Small differences of a few cents can come from rounding.
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Canadian payroll, on your own PC.
AcboBooks calculates every paycheque, tracks the CPP and EI maximums, and ends the year with T4 and T4A slips. Bought once.
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