Canada Salary Calculator
Take-Home Pay & Deductions
Salary Calculator
Calculate your net salary and take-home pay
Includes Federal & Provincial taxes, CPP (5.95%), and EI (1.66%)
Which Province Has the Lowest Taxes in Canada?
Provincial tax rates vary significantly across Canada. Here's how four major provinces compare for a $60,000 annual salary:
| Province | Provincial Tax | Net Salary | Effective Tax Rate |
|---|---|---|---|
| British Columbia(Lowest Tax) | $3,036 | $43,379 | 27.70% |
| Ontario | $3,186 | $43,229 | 27.95% |
| Alberta | $6,000 | $40,415 | 32.64% |
| Quebec | $8,400 | $38,015 | 36.64% |
Note: This comparison is based on a $60,000 annual salary. Tax rates are progressive, so the difference between provinces may vary at different income levels. Use the calculator above to see your specific situation.
Understanding Taxes & Deductions in Canada
Canada uses a two-tier tax setup: you pay federal taxes plus whatever your province or territory charges. Federal rates start at 15% and go up to 33%, and then each province adds its own layer on top.
Everyone chips in for the Canada Pension Plan (CPP) at 5.95% on earnings between $3,500 and $68,500, and Employment Insurance (EI) at 1.66% on earnings up to $63,100.
Tax rates vary significantly by province, with provinces like Alberta having lower rates and provinces like Quebec and Nova Scotia having higher rates.
Last Updated: January 1, 2026
Frequently Asked Questions
▶How does the Canadian tax system work?
Canada uses a two-tier system with federal taxes (15-33%) plus provincial taxes that vary by province.
▶What is CPP?
The Canada Pension Plan is a mandatory contribution that provides retirement, disability, and survivor benefits.
▶Do all provinces have the same tax rate?
No, provincial tax rates vary significantly. Alberta has the lowest rates, while Quebec and some Atlantic provinces have higher rates.
Official Sources
Reviewed using official government publications