Take Home Pay Calculator Canada (Updated 2024)
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How to use our take home pay calculator?
You can quickly calculate your net salary, or take-home pay, using the calculator above. Simply enter your annual pre-tax salary. This tool will estimate your take-home pay and the income taxes paid per year, month, and day.
How is take home pay calculated in Canada?
In Canada, take-home pay, or net salary, is the amount you receive after all deductions are taken from your gross salary. A simple formula to calculate take-home pay in Canada is:
Good to know
Take-Home Pay = Gross Salary - Federal Taxes - Provincial Taxes - CPP Contributions - EI Contributions
If you work in Quebec, you would also subtract the Quebec Parental Insurance Plan (QPIP) contributions:
Good to know
Take-Home Pay (Quebec) = Gross Salary - Federal Taxes - Provincial Taxes - CPP Contributions - EI Contributions - QPIP Contributions
What is the difference between Gross and Net Salary in Canada?
- Gross Salary is the total income you earn before any deductions (taxes, CPP, EI) are applied.
- Net Salary is the amount you take home after all deductions have been subtracted from your gross salary.
Steps to Calculate Take Home Pay in Canada
Here's how your take home pay is calculated in Canada:
- Start with Gross Salary: This is your total earnings before any deductions. For example, if your annual salary is $80,000, this is your gross salary.
- Subtract Federal Taxes: The federal government takes a portion of your income based on tax brackets. For an $80,000 salary, the federal tax could be around $10,822.
- Subtract Provincial Taxes: Each province has its own tax rates. In Ontario, for instance, on an $80,000 salary, you might pay around $5,567 in provincial taxes.
- Subtract Canada Pension Plan (CPP) Contributions: A percentage of your income is contributed to the CPP. If you're between 18 and 65, you'll contribute to the CPP. This is calculated as a percentage of your income up to a yearly maximum. The employer also matches this contribution. For our example, this could be approximately $3,755.
- Subtract Employment Insurance (EI) Contributions: A small portion is also taken for EI, which might be around $1,301 for an $80,000 salary. EI provides temporary financial assistance if you lose your job or take maternity/parental leave.
- Subtract Quebec Parental Insurance Plan (QPIP) Contributions (if applicable): Only applies if you work in Quebec.
Example of Take Home Pay Calculation
Let's break down an example of how an $80,000 salary in Ontario translates into take-home pay, so you can get a clearer picture of what to expect when planning your budget. This will help you better understand where your money goes and how it affects your overall financial situation.
Here is an illustrative diagram of how your take home pay is calculated.
If an engineer in Ontario earns $80,000 annually, then their salary would be broken down into:
- Gross Salary: $80,000
- Federal Taxes: -$10,822
- Provincial Taxes: -$5,567
- CPP Contributions: -$3,755
- EI Contributions: -$1,301
Take-Home Pay = $80,000 - $10,822 - $5,567 - $3,755 - $1,301 = $58,555
Good to know
- The exact amount of deductions can vary based on your province, tax credits, and other individual factors.
- Use our online calculator for precise amounts as tax rates change yearly.
Why calculate your net salary?
Calculating your net salary allows you to project your actual take-home pay rather than the number before income taxes are removed. Knowing your net salary is useful for:
- Comparing different employment offers
- Asking your current employer for a raise
- Negotiating your salary during a job interview
- Budgeting your monthly budget
- Knowing how much you can afford towards rent, mortgage or other regular payments
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What taxes and charges are deducted from your gross salary?
In Canada, several taxes and contributions are deducted from your gross salary before you receive your net take-home pay. Here’s a breakdown of what these deductions typically include:
1. Federal and Provincial Income Taxes
- Federal Tax: This is the tax paid to the federal government based on your income level. Canada has a progressive tax system, so the tax rate increases as your income rises.
- Provincial Tax: In addition to federal tax, each province and territory has its own tax rates. These vary depending on where you live and work. Example: If you earn $60,000 annually, you might pay around $7,000 in federal taxes and $3,000 in provincial taxes, depending on your province.
2. Canada Pension Plan (CPP) Contributions
- CPP is a mandatory contribution for most workers in Canada, providing retirement, disability, and survivor benefits.
- You will contribute to it throughout your career. In retirement, this program will provide you with a regular income. It also provides disability benefits and death and survivor benefits.
- The contribution rate is shared between you and your employer, with a portion deducted from your paycheck. Example: If your salary is $60,000, approximately $3,200 might be deducted annually for CPP.
3. Employment Insurance (EI) Contributions
Employment Insurance (EI) provides temporary financial assistance if you lose your job or take maternity/parental leave. You get EI if you're unable to work due to:
- Unemployment (loss of their previous job without fault)
- Pregnancy
- Parental benefits
- Illness
- Caring for an ill family member
Similar to CPP, a portion of your salary is deducted for EI, with both you and your employer contributing. Example: For a $60,000 salary, you might see around $1,200 deducted for EI.
While EI can offer short-term support, having a personal disability insurance plan ensures longer-term protection in case of illness or injury that prevents you from working. Our free tool lets you compare disability insurance plans and find personalized quotes online.
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4. Quebec Parental Insurance Plan (QPIP) Contributions (if applicable)
- If you work in Quebec, you will contribute to QPIP instead of the federal EI program. This plan provides maternity, paternity, parental, and adoption benefits. We discuss this further in the following sections.
5. Other Deductions
- Health and Dental Insurance Premiums: If you have employer-provided benefits, your share of the premiums might be deducted from your pay.
- Union Dues: If you're part of a union, dues may also be deducted from your gross salary.
However, many Canadians opt for additional health insurance to cover out-of-pocket costs not included in their employer's plan. Use our free tool to compare health insurance options and get quotes tailored to your needs.
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Take Home Pay Calculator: Summary of Deductions
| Description | Amount ($) |
|---|---|
| Gross Salary | 60,000 |
| Federal Taxes | -7,000 |
| Provincial Taxes | -3,000 |
| CPP Contributions | -3,200 |
| EI Contributions | -1,200 |
| Net Salary | 45,600 |
Understanding these deductions helps you plan your finances better, giving you a clearer picture of your actual take-home pay. These amounts can vary depending on your income level, province, and specific personal circumstances.
What is the Provincial Parental Insurance Plan or QPIP?
The Provincial Parental Insurance Plan (PPIP) refers to a mandatory social insurance program that funds parental leave for parents of newborn or adopted children. They are administered at the provincial level. Quebec is the only province that currently does so. Its program is called the Quebec Parental Insurance Plan. You will only pay this if you live in Quebec.
This generous benefit pays parents a percentage of their income while taking time off to care for their new child.
For 2024, the Quebec Parental Insurance Plan (QPIP) contributions remain the same as in previous years:
- Employee Contribution: 0.494% of your salary, up to a maximum insurable earnings limit of $94,000. This means the maximum contribution you would pay as an employee is $464.36 for the year.
- Employer Contribution: Employers are required to contribute 0.692% of the same maximum earnings, with a cap of $650.48 for the year
More information about QPIP benefits is available in the PDF below:
Good to know
While PPIP deductions are recognized by the Canadian Revenue Agency, Quebec is the only province that currently operates a program.
What is the average salary in Canada?
The average salary for a full-time worker in Canada in 2024 is approximately CAD 76,000 per year, or about CAD 6,300 per month before taxes. There is some variation in reported averages, with another estimate at around CAD 63,000, reflecting a recent 4% increase from the previous year.
Good to know
Salaries in Canada vary significantly by province and territory. For example, Nunavut boasts one of the highest average annual salaries at around CAD 85,000, while in Ontario, the average stands at about CAD 78,000. Factors such as industry, experience, and location contribute to these differences in earnings across the country.
What are the tax rates on gross salary?
Tax rates are a function of how much you earn and where. You will owe both federal and provincial taxes.
Here's a general overview of the federal and provincial income tax rates in Canada for 2024. Note that these rates are applied progressively, meaning different portions of your income are taxed at different rates.
Federal Tax Rates 2024
| Income Bracket | Tax Rate |
|---|---|
| Up to $53,359 | 15% |
| $53,360 to $106,717 | 20.5% |
| $106,718 to $165,430 | 26% |
| $165,431 to $235,675 | 29% |
| Over $235,675 | 33% |
Ontario Tax Rates 2024
| Income Bracket | Tax Rate |
|---|---|
| Up to $49,231 | 5.05% |
| $49,232 to $98,463 | 9.15% |
| $98,464 to $150,000 | 11.16% |
| $150,001 to $220,000 | 12.16% |
| Over $220,000 | 13.16% |
Good to know
If you live and work in Ontario, you can use our free take home pay Ontario calculator to instantly find out your net salary and the taxes you will pay based on your province.
British Columbia Tax Rates 2024
| Income Bracket | Tax Rate |
|---|---|
| Up to $45,654 | 5.06% |
| $45,655 to $91,311 | 7.7% |
| $91,312 to $104,835 | 10.5% |
| $104,836 to $127,299 | 12.29% |
| $127,300 to $172,602 | 14.7% |
| $172,603 to $240,716 | 16.8% |
| Over $240,716 | 20.5% |
Good to know
If you live and work in Ontario, you can use our free take home pay BC calculator to instantly find out your net salary and the taxes you will pay based on your province.
Quebec Tax Rates 2024
| Income Bracket | Tax Rate |
|---|---|
| Up to $49,275 | 15% |
| $49,276 to $98,540 | 20% |
| $98,541 to $119,910 | 24% |
| Over $119,910 | 25.75% |
Good to know
If you live and work in Ontario, you can use our free take home pay Quebec calculator to instantly find out your net salary and the taxes you will pay based on your province.
Alberta Tax Rates 2024
| Income Bracket | Tax Rate |
|---|---|
| Up to $142,292 | 10% |
| $142,293 to $170,751 | 12% |
| $170,752 to $227,668 | 13% |
| $227,669 to $341,502 | 14% |
| Over $341,502 | 15% |
Good to know
These rates may vary yearly and depend on government budgets. Additionally, other deductions and credits can affect the total amount of tax you owe. It's advisable to check with the Canada Revenue Agency (CRA) or a tax professional for the most up-to-date information.
What is the average salary in Canada by the level of education?
| Education Level | Average Annual Salary (CAD) |
|---|---|
| No High School Diploma | $25,000 - $30,000 |
| High School Diploma | $35,000 - $40,000 |
| Some College or Trade School | $45,000 - $55,000 |
| Bachelor's Degree | $60,000 - $80,000 |
| Master's Degree | $75,000 - $100,000 |
| Doctorate (PhD) | $90,000 - $120,000+ |
| Professional Degrees (Medicine, Law) | $100,000 - $200,000+ |
This table provides a general overview and actual salaries can vary based on several factors such as industry, location, and experience.
What is the average salary in Canada by industry?
Here is the average salary by industry in Canada for 2024:
| Industry | Average Salary (per year) |
|---|---|
| Agriculture | $45,695 |
| Forestry, Fishing, Mining, Quarrying, Oil and Gas | $91,197 |
| Utilities | $95,064 |
| Construction | $68,225 |
| Manufacturing | $63,742 |
| Wholesale and Retail Trade | $49,908 |
| Transportation and Warehousing | $61,760 |
| Finance, Insurance, Real Estate, Rental, and Leasing | $78,749 |
| Professional, Scientific, and Technical Services | $85,117 |
| Business, Building, and Other Support Services | $49,889 |
| Educational Services | $74,478 |
| Health Care and Social Assistance | $61,548 |
| Information, Culture, and Recreation | $60,105 |
| Accommodation and Food Services | $37,864 |
| Other Services (Except Public Administration) | $55,468 |
| Public Administration | $81,981 |
These figures represent the average salaries across various sectors in Canada, indicating a wide range of earning potential depending on the industry.
What is the minimum wage in Canada?
Federally, there is no minimum wage in Canada. Each province or territory is responsible for setting its own. Here is a table listing the minimum wage rates across different provinces and territories in Canada for 2024.
| Province/Territory | Minimum Hourly Wage |
|---|---|
| Alberta | $15.00 |
| British Columbia | $17.40 |
| Manitoba | $15.30 (rising to $15.80 on October 1, 2024) |
| New Brunswick | $15.30 |
| Newfoundland & Labrador | $15.60 |
| Northwest Territories | $16.70 |
| Nova Scotia | $15.20 |
| Nunavut | $19.00 |
| Ontario | $16.55 (rising to $17.20 on October 1, 2024) |
| Prince Edward Island | $15.40 (rising to $16.00 on October 1, 2024) |
| Quebec | $15.75 |
| Saskatchewan | $14.00 (rising to $15.00 on October 1, 2024) |
| Yukon | $17.59 |
These rates are subject to change, often tied to the Consumer Price Index and other economic factors.
All our guides on Take Home Pay
- Prince Edward Island take-home pay calculator
- Ontario take-home pay calculator
- Nova Scotia take-home pay calculator
- Newfoundland and Labrador take-home pay calculator
- New Brunswick take-home pay calculator
- Manitoba take-home pay calculator
- British Columbia take-home pay calculator
- Alberta take-home pay calculator
- Saskatchewan take-home pay calculator
- Quebec take-home pay calculator
Why does the gross net salary not list British Columbia?
Hi Laurence,
You can calculate your take-home pay for British Columbia using our dedicated calculator.
Have a nice day,
The HelloSafe team