Payroll deductions calculator: one pay cheque, the CRA way (2026)
A $3,000 biweekly pay in Ontario from July 2026 has $170.49 of CPP, $48.90 of EI and $521.46 of income tax withheld, so the net pay is $2,259.15.
Enter the pay, period and province to see each deduction and the employer's share, computed with the CRA's T4127 formulas that its own calculator and T4032 tables use.
How it's worked out
Step 1: the pay, less RPP, union dues and the enhanced CPP part, is multiplied by the number of pay periods to get annual taxable income (A). Step 2: federal tax is the bracket rate times A minus the bracket constant, less credits at 14% for the TD1 claim, base CPP, EI and the Canada employment amount. Step 3: provincial tax is worked out the same way at the province's lowest rate, then Ontario's surtax, health premium and reduction or B.C.'s reduction are applied. Step 4: the year's total is divided by the number of pay periods. CPP is 5.95% of pay above the period's share of the $3,500 exemption; EI is 1.63% of pay.
Pay dates before and from 1 July 2026
| Province | January to June 2026 | July to December 2026 (prorated) | Full year on the return |
|---|---|---|---|
| British Columbia | 5.06% lowest rate, $575 reduction | 6.14%, $805 | 5.60%, $690 |
| Newfoundland and Labrador | $11,188 basic personal amount | $15,000 | $13,094 |
| Prince Edward Island | 19% above $142,520 | 21% above $200,000 | 20% above $200,000 |
Worked example: $3,000 biweekly in Ontario
Pay date from July 2026, standard TD1 claims, no RPP or union dues:
| Result | Amount |
|---|---|
| Net pay | $2,259.15 |
| Federal tax | $340.35 |
| Ontario tax | $181.12 |
| CPP | $170.49 |
| EI premium | $48.90 |
| Total deductions | $740.85 |
| Employer's CPP and EI on top | $238.95 |
How to use the Payroll Deductions Calculator
- Pick the province or territory of employment and the pay period.
- Enter the gross pay for the period, including taxable benefits.
- Leave the standard TD1 claim on, or enter the total claim amounts from the employee's federal and provincial TD1 forms.
- Add any RPP contributions or union dues deducted from this pay.
Key figures 2026
The statutory rates and thresholds this calculator uses, where each comes from, and when we last checked it.
| Figure | Value | Source and date checked |
|---|---|---|
| Method | CRA T4127 Option 1 formulas (also behind the PDOC and T4032 tables); tests match the T4032 tables to 5 cents | T4032-ON Payroll Deductions Tables, Ontario, effective January 1, 2026 (general information and worked examples)Checked 2026-11-06 |
| Federal tax rates 2026 | 14% to $58,523; 20.50% to $117,045; 26% to $181,440; 29% to $258,482; 33% above | T4127 Payroll Deductions Formulas, 122nd edition, effective January 1, 2026Checked 2026-11-06 |
| Federal basic personal amount 2026 | $16,452, reduced to $14,829 between $181,440 and $258,482 of net income | T4127 Payroll Deductions Formulas, 122nd edition, effective January 1, 2026Checked 2026-11-06 |
| Canada employment amount | $1,501 (credit at 14%) | T4127 Payroll Deductions Formulas, 122nd edition, effective January 1, 2026Checked 2026-11-06 |
| CPP 2026 | 5.95% of earnings between $3,500 and $74,600 (maximum $4,230.45); CPP2 4% from $74,600 to $85,000 (maximum $416.00) | T4127 Payroll Deductions Formulas, 122nd edition, effective January 1, 2026Checked 2026-11-06 |
| EI 2026 | 1.63% of insurable earnings up to $68,900 (maximum $1,123.07); employer 1.4 times | T4127 Payroll Deductions Formulas, 122nd edition, effective January 1, 2026Checked 2026-11-06 |
| Ontario surtax | 20% of basic tax over $5,818 plus 36% over $7,446 | T4032-ON Payroll Deductions Tables, Ontario, effective January 1, 2026 (general information and worked examples)Checked 2026-11-06 |
| Ontario health premium | $0 to $900 a year in steps from $20,000 of taxable income | T4032-ON Payroll Deductions Tables, Ontario, effective January 1, 2026 (general information and worked examples)Checked 2026-11-06 |
Frequently asked questions
Is this the same as the CRA's PDOC?
It uses the same Option 1 formulas from the CRA's T4127 guide and our tests match the CRA's T4032 tables for Ontario, Alberta and British Columbia to within 5 cents. The PDOC also tracks year-to-date CPP and EI; this calculator assumes the year's maximums have not yet been reached.
What changed on 1 July 2026?
The CRA's 123rd edition changed three provinces for pay dates from 1 July: British Columbia's lowest rate (prorated 6.14% and an $805 tax reduction), Newfoundland and Labrador's basic personal amount ($15,000 prorated) and a prorated 21% top rate in Prince Edward Island above $200,000. Pick the pay date to switch editions.
What is a TD1 total claim amount?
The total of the personal amounts an employee claims on the federal TD1 and the provincial TD1 (claim code 1 is the basic personal amount only: $16,452 federally in 2026). A higher claim means less tax withheld.
When do CPP and EI stop for the year?
CPP stops at $4,230.45 of contributions ($74,600 of pensionable earnings), after which CPP2 of 4% applies up to $85,000 (maximum $416.00). EI stops at $1,123.07 ($68,900 of insurable earnings).
What does the employer pay on top?
The employer matches the employee's CPP and CPP2 and pays 1.4 times the employee's EI premium; both appear in the result as the employer's cost.
Is this tax advice?
No. Results are estimates from the CRA's published 2026 rates and formulas for an employee with employment income only. Other income, deductions and credits change the answer; check with the CRA or a tax professional before you rely on a figure.
Sources
- T4127 Payroll Deductions Formulas, 122nd edition, effective January 1, 2026 (Canada Revenue Agency (CRA))
- T4127 Payroll Deductions Formulas, 123rd edition, effective July 1, 2026 (Canada Revenue Agency (CRA))
- T4032-ON Payroll Deductions Tables, Ontario, effective January 1, 2026 (general information and worked examples) (Canada Revenue Agency (CRA))
- T4032 Payroll Deductions Tables, 2026 editions by province (Canada Revenue Agency (CRA))
Estimates, not tax or legal advice. Results come from the published rules for the cases this calculator covers in 2026; your own circumstances can change them. Check with the official source: CRA Payroll Deductions Online Calculator (PDOC).
Last checked 2026-11-06 by the TakeHomeWorld editors · How we calculate and check rates · Runs entirely in your browser; nothing you type is stored.