Canadian payroll rates 2026
Every 2026 contribution ceiling, premium rate, tax bracket and basic personal amount used across this site and inside the calculator, with the official source beside each one.
Written and reviewed by Rocco Clayfield, Founder & DirectorLast reviewed
Short answer
For 2026, CPP takes 5.95% of pensionable earnings between $3,500 and $74,600 to a maximum of $4,230.45, and CPP2 takes a further 4% between $74,600 and $85,000 to a maximum of $416.00. EI takes 1.63% of insurable earnings to $68,900, a maximum of $1,123.07, or 1.3% and $895.70 in Quebec. Quebec employees pay QPP at 6.30% to a maximum of $4,479.30 and QPIP at 0.43% to $442.90. Federal tax starts at 14% with a basic personal amount of $16,452.
What are the CPP, CPP2, EI, QPP and QPIP maximums for 2026?
These are the figures your employer must stop deducting at. Once your year-to-date contribution reaches the maximum, the line disappears from your pay stub for the rest of the year and your take-home pay rises.
| Contribution | Earnings ceiling | Employee rate | Maximum employee amount |
|---|---|---|---|
| CPP (outside Quebec) | $74,600 (less $3,500 exemption) | 5.95% | $4,230.45 |
| CPP2 (second ceiling) | $74,600 – $85,000 | 4.00% | $416.00 |
| EI (outside Quebec) | $68,900 | 1.63% | $1,123.07 |
| EI (Quebec) | $68,900 | 1.3% | $895.70 |
| QPP (Quebec) | $74,600 (less $3,500 exemption) | 6.30% (5.30% base + 1.00%) | $4,479.30 |
| QPP2 (Quebec) | $74,600 – $85,000 | 4.00% | $416.00 |
| QPIP (Quebec) | $103,000 | 0.43% | $442.90 |
Sources: CRA — CPP contribution rates, maximums and exemptions; CRA — CPP enhancement (CPP2); CRA — EI premium rates and maximums; Revenu Québec — QPP maximum pensionable earnings; RQAP — premiums and maximum insurable earnings.
What are the 2026 federal tax brackets and basic personal amount?
| Taxable income | Federal rate |
|---|---|
| $0 – $58,523 | 14% |
| $58,523 – $117,045 | 20.50% |
| $117,045 – $181,440 | 26% |
| $181,440 – $258,482 | 29% |
| Over $258,482 | 33% |
- Basic personal amount: $16,452, reduced on a straight line to $14,829 between $181,440 and $258,482 of net income.
- Credit rate: 14% — the lowest federal rate, and the rate at which the basic personal amount, CPP/QPP base contributions, EI and QPIP are converted into tax credits.
- Canada Employment Amount: $1,501, applied automatically in payroll withholding — worth up to $210.14 of tax.
- Quebec abatement: 16.50% of basic federal tax, applied at source for Quebec residents.
Sources: CRA T4127 — Payroll Deductions Formulas; CRA — indexation adjustment for personal income tax and benefit amounts.
2026 tax brackets and basic personal amount by province and territory
Provincial tax is calculated on the same taxable income as federal tax, then reduced by the provincial basic personal amount and the provincial credits for CPP/QPP and EI. Ontario is the only jurisdiction with a surtax and a health premium.
Ontario
Basic personal amount $12,989
| Taxable income | Rate |
|---|---|
| $0 – $53,891 | 5.05% |
| $53,891 – $107,785 | 9.15% |
| $107,785 – $150,000 | 11.16% |
| $150,000 – $220,000 | 12.16% |
| Over $220,000 | 13.16% |
Plus a 20% surtax on Ontario tax over $5,818 and a further 36% over $7,446, and the Ontario Health Premium (banded, maximum $900).
British Columbia
Basic personal amount $13,216
| Taxable income | Rate |
|---|---|
| $0 – $50,363 | 5.60% |
| $50,363 – $100,728 | 7.70% |
| $100,728 – $115,648 | 10.50% |
| $115,648 – $140,430 | 12.29% |
| $140,430 – $190,405 | 14.70% |
| $190,405 – $265,545 | 16.80% |
| Over $265,545 | 20.50% |
The lowest rate rose from 5.06% to 5.60% for 2026; employers withhold at a prorated 6.14% from July to December to catch up.
Alberta
Basic personal amount $22,769
| Taxable income | Rate |
|---|---|
| $0 – $61,200 | 8% |
| $61,200 – $154,259 | 10% |
| $154,259 – $185,111 | 12% |
| $185,111 – $246,813 | 13% |
| $246,813 – $370,220 | 14% |
| Over $370,220 | 15% |
Quebec
Basic personal amount $18,952
| Taxable income | Rate |
|---|---|
| $0 – $54,345 | 14% |
| $54,345 – $108,680 | 19% |
| $108,680 – $132,245 | 24% |
| Over $132,245 | 25.75% |
Manitoba
Basic personal amount $15,780 (income-tested)
| Taxable income | Rate |
|---|---|
| $0 – $47,000 | 10.80% |
| $47,000 – $100,000 | 12.75% |
| Over $100,000 | 17.40% |
Saskatchewan
Basic personal amount $20,381
| Taxable income | Rate |
|---|---|
| $0 – $54,532 | 10.50% |
| $54,532 – $155,805 | 12.50% |
| Over $155,805 | 14.50% |
Nova Scotia
Basic personal amount $11,932
| Taxable income | Rate |
|---|---|
| $0 – $30,995 | 8.79% |
| $30,995 – $61,991 | 14.95% |
| $61,991 – $97,417 | 16.67% |
| $97,417 – $157,124 | 17.50% |
| Over $157,124 | 21% |
New Brunswick
Basic personal amount $13,664
| Taxable income | Rate |
|---|---|
| $0 – $52,333 | 9.40% |
| $52,333 – $104,666 | 14% |
| $104,666 – $193,861 | 16% |
| Over $193,861 | 19.50% |
Newfoundland and Labrador
Basic personal amount $13,094
| Taxable income | Rate |
|---|---|
| $0 – $44,678 | 8.70% |
| $44,678 – $89,354 | 14.50% |
| $89,354 – $159,528 | 15.80% |
| $159,528 – $223,340 | 17.80% |
| $223,340 – $285,319 | 19.80% |
| $285,319 – $570,638 | 20.80% |
| $570,638 – $1,141,275 | 21.30% |
| Over $1,141,275 | 21.80% |
Prince Edward Island
Basic personal amount $15,000
| Taxable income | Rate |
|---|---|
| $0 – $33,928 | 9.50% |
| $33,928 – $65,820 | 13.47% |
| $65,820 – $106,890 | 16.60% |
| $106,890 – $142,520 | 17.62% |
| $142,520 – $200,000 | 19% |
| Over $200,000 | 20% |
The 20% bracket over $200,000 was added in April 2026; withholding from July uses a prorated 21%.
Northwest Territories
Basic personal amount $18,198
| Taxable income | Rate |
|---|---|
| $0 – $53,003 | 5.90% |
| $53,003 – $106,009 | 8.60% |
| $106,009 – $172,346 | 12.20% |
| Over $172,346 | 14.05% |
Yukon
Basic personal amount $16,452 (income-tested)
| Taxable income | Rate |
|---|---|
| $0 – $58,523 | 6.40% |
| $58,523 – $117,045 | 9% |
| $117,045 – $181,440 | 10.90% |
| $181,440 – $500,000 | 12.80% |
| Over $500,000 | 15% |
Nunavut
Basic personal amount $19,659
| Taxable income | Rate |
|---|---|
| $0 – $55,801 | 4% |
| $55,801 – $111,602 | 7% |
| $111,602 – $181,439 | 9% |
| Over $181,439 | 11.50% |
Source: CRA T4127 Payroll Deductions Formulas, 122nd edition (1 January 2026) and 123rd edition (1 July 2026), cross-checked against each province’s own 2026 tax page. Quebec figures from Revenu Québec TP-1015.F-V (2026-01).
Frequently asked questions
What is the maximum CPP contribution for 2026?
The maximum employee CPP contribution for 2026 is $4,230.45, reached on pensionable earnings of $74,600 — that is 5.95% of the $71,100 of contributory earnings left after the $3,500 basic exemption. On top of that, CPP2 takes 4% of earnings between $74,600 and $85,000, a further $416.00. The combined 2026 maximum is $4,646.45.
Why do Quebec employees pay a lower EI rate?
Quebec runs its own parental insurance plan, QPIP, so federal EI does not have to fund parental benefits there. The 2026 employee EI rate is 1.63% outside Quebec and 1.3% in Quebec, against the same $68,900 maximum insurable earnings. A Quebec employee instead pays a QPIP premium of 0.43% on earnings up to $103,000.
How much of a CPP contribution is a tax credit and how much is a deduction?
They are treated differently. The base 4.95% slice of CPP — up to $3,519.45 in 2026 — is a non-refundable tax credit valued at the lowest federal rate of 14%. The enhanced 1.00% slice (up to $711.00) and the whole of CPP2 (up to $416.00) are a deduction from taxable income instead. Getting this split wrong is the most common error in a payroll estimate.
What is the Quebec federal tax abatement?
Quebec residents have their basic federal tax reduced by 16.50%. It is applied in payroll withholding, not just at filing, so a Quebec pay stub shows visibly less federal tax than an identical salary elsewhere in Canada — and correspondingly more provincial tax, because Quebec's own rates are higher.
When do these 2026 figures change?
Contribution ceilings and most tax brackets are re-indexed every January. Provinces also change rates mid-year: for 2026 British Columbia raised its lowest rate from 5.06% to 5.60% and Prince Edward Island added a 20% bracket over $200,000, both part-way through the year. Always confirm a figure against the official source linked beside it before relying on it.
Helpful guidance, not advice
PayStub IQ Canada provides educational payroll explanations based on the information visible in your document. It does not provide legal, tax, accounting, payroll, CRA, Revenu Québec, or employment standards advice. For official decisions or corrections, contact your employer, payroll department, CRA, Revenu Québec, your provincial or territorial employment standards office, or a qualified professional.