Wage WillowHow we calculate take-home pay
The calculator and the Wage Willow budget tracker use the same formulas. Here is exactly what they include, what they leave out and where the rates come from. Updated November 4, 2026.
What's taken off your pay
CPP. 2026: 5.95% of earnings between $3,500 and $74,600 (base plus first enhancement), and 4% CPP2 on earnings from $74,600 to $85,000. 2027: 5.75% (the base rate drops to 4.75% under Bill C-30) between $3,500 and $76,700, and 4% CPP2 up to $87,400. The enhanced part of CPP is deducted from taxable income; the base part earns a tax credit.
EI. 2026: 1.63% of insurable earnings up to $68,900. 2027: 1.64% up to $70,800.
Federal income tax. 2026 brackets: 14% to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482 and 33% above. Credits: the basic personal amount ($16,452, phasing down above $181,440), the Canada employment amount ($1,501), and credits for base CPP and EI.
Provincial and territorial income tax. Each province's 2026 brackets, basic personal amount and credit rate, plus Ontario's surtax and Health Premium and BC's tax reduction. Each province page shows its brackets.
What's not included
Quebec (its own tax system, QPP and QPIP), spouse and dependant credits, tuition and other personal credits, taxable benefits, union dues, and some low-income reductions. Take-home under about $40,000 may be slightly understated. Results are estimates for planning, not tax advice.
2027 preview
CPP and EI use the confirmed 2027 rules. Income tax uses 2026 brackets until the CRA and the provinces publish 2027 amounts, usually in late November and December. We update the calculator when they do.
Sources
CRA T4127 Payroll Deductions Formulas, CRA income tax rates, CRA YMPE and YAMPE announcements, the Canada Employment Insurance Commission's 2027 premium rate, and provincial finance ministries.
Now give every dollar of that paycheque a job.
The Wage Willow budget tracker takes this number and builds your budget, bills, savings goals and daily spending around it. Google Sheets and Excel, every province and territory except Quebec, free 2027 update included.