Federal income tax
The same federal brackets apply across Canada. The estimate includes the federal basic personal amount and Canada employment amount.
CanadaUnited States
2026 · Canadian dollars
Canadian Pay Raise Calculator
Enter your salary or hourly wage, raise and province or territory. See your new pay and an estimated after-tax increase after federal and provincial or territorial income tax, CPP or QPP, EI and QPIP—with average biweekly, semi-monthly and monthly results.
$
%
26 averages per year; not an exact paycheque withholding figure.
Results updated. New annual pay is $73,500.00; estimated annual take-home change is $2,147.38.
New annual pay
$73,500
+5.0% gross change
Annual take-home change
$2,147
after estimated 2026 tax and contributions
Average biweekly change
$82.59
26 averages per year
Gross raise kept
61%
after income tax, pension and insurance
| Annual estimate | Before | After |
|---|---|---|
| Gross pay | $70,000.00 | $73,500.00 |
| Federal income tax | -$7,278.18 | -$7,964.25 |
| Ontario income tax | -$3,855.26 | -$4,313.56 |
| CPP contributions | -$3,956.75 | -$4,165.00 |
| EI premiums | -$1,123.07 | -$1,123.07 |
| Estimated take-home pay | $53,786.74 | $55,934.12 |
A $3,500 gross annual change is estimated to change take-home pay by $2,147 per year. Ontario uses CPP and EI alongside federal and provincial or territorial income tax.
2026 annual planning estimate
Assumes a full-year Canadian resident employee with one employer and only the basic personal amounts. It excludes RRSP or pension deductions, union dues, taxable benefits, extra TD1 credits, refundable benefits, and employer-specific payroll adjustments. Per-period results divide the annual estimate into averages and are not exact source deductions or tax advice.
Planning estimate only. Results are not a tax return, tax advice or an exact payroll withholding calculation. See the site disclaimer.
After tax
How much of a raise do you keep in Canada?
A raise adds income at the top of your current tax range. Canada uses marginal brackets, so moving into a higher bracket does not apply the higher rate to your whole salary. Only the income inside each bracket is taxed at that rate. A positive raise still increases take-home pay.
The share you keep also depends on whether you have reached the annual CPP or QPP and EI maximums. Below those limits, part of the raise can increase pension and insurance contributions. Above them, those specific deductions stop growing for the year, although income tax can continue to rise.
| Province | Gross raise | Net annual raise | Avg. biweekly | Kept |
|---|---|---|---|---|
| Ontario | $3,500 | $2,147 | $82.59 | 61% |
| British Columbia | $3,500 | $2,349 | $90.33 | 67% |
| Alberta | $3,500 | $2,273 | $87.42 | 65% |
Deductions
What changes when your pay goes up?
Provincial or territorial tax
Your region sets its own brackets and basic amount. Ontario includes its surtax and health premium; other regional special rules are applied where relevant.
CPP or QPP
CPP applies outside Quebec and QPP applies in Quebec. The 2026 first earnings ceiling is $74,600, followed by a second additional tier up to $85,000.
EI and QPIP
EI premiums use a lower employee rate in Quebec. Quebec employees also pay QPIP premiums; both premiums stop increasing at their annual insurable-earnings maximums.
Pay periods
Biweekly is not semi-monthly
Biweekly usually means every two weeks: 26 payments in a typical year. Semi-monthly means twice each month: 24 payments. A fixed annual salary does not become larger because it is paid more often; it is divided into a different number of payments. That is why the calculator keeps the two frequencies separate.
Biweekly
26/year
Every two weeks; some calendar years can have a 27th payday depending on payroll timing.
Semi-monthly
24/year
Usually two set pay dates each month.
Methodology
How the 2026 estimate works
The calculator annualizes employment income, calculates 2026 federal and provincial or territorial income tax, then subtracts employee pension and insurance contributions. Weekly, biweekly, semi-monthly and monthly take-home figures are annual averages. They are not a reproduction of one employer's payroll system.
It assumes a full-year Canadian resident employee with one employer and only the default basic personal amounts. It excludes RRSP or workplace-pension deductions, union dues, taxable benefits, bonuses, additional TD1 claims, refundable credits and benefits, self-employment and investment income.
Official sources
- CRA T4127, 122nd edition, effective January 1, 2026 — Federal, unchanged regional, CPP/QPP, EI and QPIP annual values.
- CRA T4127, 123rd edition, effective July 1, 2026 — BC and PE actual annual values use unprorated Option 2; NL BPA uses the stated actual annual amount.
- Revenu Québec TP-1015.F-V (2026-01) — Quebec income thresholds, K constants, BPA, worker deduction and QPP/QPIP values.
Reviewed 2026-07-22. Update tax-year constants and provenance together.
Questions
Canadian pay raise FAQ
How do I calculate a pay raise in Canada?
Multiply your current annual salary by the raise percentage, then add that amount to the current salary. For hourly pay, multiply the hourly increase by weekly hours and 52 to estimate the annual change. The calculator also estimates how federal and provincial tax, CPP or QPP, EI and QPIP affect the amount you keep.
How much of a raise do I keep after tax in Canada?
The amount depends on your income and province or territory. New income is affected by your marginal federal and provincial or territorial tax rates, while CPP or QPP and EI apply only until their annual maximums. Enter your province and pay details above for a 2026 estimate based on the default basic personal amounts.
Does a pay raise increase CPP and EI deductions?
Usually, yes, while your annual earnings remain below the relevant maximum. CPP or QPP and EI stop increasing after their annual insurable or pensionable earnings limits are reached. Quebec employees may also pay QPIP premiums up to its annual maximum.
Why does my province affect take-home pay after a raise?
Canada combines federal income tax with a separate provincial or territorial calculation. Each region has its own brackets, personal amount and, in some cases, special reductions, surtaxes or premiums. Quebec also administers its own provincial income tax and uses QPP and QPIP.
How much is a 2%, 3% or 4% raise per paycheque?
Start with the annual raise and divide by 26 for biweekly pay or 24 for semi-monthly pay. That gives the gross average. The take-home average is lower after tax and contributions, and it can differ from an actual paycheque because payroll withholding and employer deductions are calculated per pay period.
Is biweekly pay the same as semi-monthly pay in Canada?
No. Biweekly pay normally means every two weeks, or 26 pay periods in a typical year. Semi-monthly pay means twice a month, or 24 pay periods. The same annual salary is divided into a different number of payments, so the amount per paycheque differs.