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Canada payroll deductions for 2026 are income tax, CPP (QPP in Quebec) and EI. Two of them switch off during the year: EI after $68,900 of pay and the main CPP rate after $74,600. So a worker on $100,000 paid every two weeks loses about $283.53 a cheque to both early in the year and nothing to either by the last few pay dates.
What are the 2026 payroll deduction rates?
These come from the CRA payroll pages, including its CPP contribution rates, maximums and exemptions and EI premium rates and maximums pages. They apply to employees outside Quebec unless noted, and the employer pays a matching share of CPP and 1.4 times the EI premium.
| Deduction | Employee rate | Applies to pay | Most you pay in 2026 |
|---|---|---|---|
| CPP | 5.95% | $3,500 to $74,600 | $4,230.45 |
| CPP second band (CPP2) | 4% | $74,600 to $85,000 | $416.00 |
| EI outside Quebec | 1.63% | first $68,900 | $1,123.07 |
| EI in Quebec | 1.30% | first $68,900 | $895.70 |
| Federal income tax | 14% | first $58,523 | rises with income |
| Federal income tax | 20.5% | $58,523 to $117,045 | rises with income |
| Federal income tax | 26% | $117,045 to $181,440 | rises with income |
The federal brackets continue at 29% and 33% above $181,440 and $258,482. Provincial tax comes on top, and it’s different everywhere. Quebec also has QPP and QPIP. We haven’t confirmed their 2026 rates on an official page, so this page doesn’t quote them.
When do my Canada payroll deductions stop?
Here’s the $100,000 case, paid biweekly, so 26 cheques of $3,846.15. EI reaches its $68,900 limit during cheque 18. The main CPP limit of $74,600 falls in cheque 20, and the CPP2 limit of $85,000 in cheque 23. That leaves three cheques with no CPP or EI at all, and for those the only deduction is tax.
Before any cap, CPP takes about $220.84 and EI $62.69 from each cheque, which is $283.53 together. That’s 7.4% of gross. Because our engine spreads tax evenly over 26 cheques ($770.17 each), a real stub will move a little differently. The shape holds, though: pay rises in the final weeks of the year.
A person earning $60,000 never hits these limits. Their deductions stay the same every cheque, which is $129.30 of CPP and $37.62 of EI.
Why does your first paycheque look smaller than you expected?
Because the deductions start from the very first cheque of the year, and nothing is capped yet. Alex starts a new job in January on $60,000 and sees about $166.92 gone to CPP and EI on every biweekly cheque, plus income tax, before a dollar reaches the bank. That’s $129.30 plus $37.62. The take-home looks thin until you remember that your gross is a yearly number cut into 26 slices.
Which tax gets taken from each cheque?
Income tax is taken as an estimate of what you’ll owe for the year, divided by the number of pay periods. On $60,000 in Ontario the engine shows $320.02 of tax per biweekly cheque, made up of $205.32 federal and $114.70 Ontario.
Your final tax gets set when you file, so a refund or a balance can follow. If your employer takes too much, the extra comes back as a refund. Too little, and you owe the rest at tax time.
Is the end-of-year pay rise worth planning around?
Not really. But it explains a lot of confusion. If you budget from your January cheque, you’ll underestimate what you take home later. If you’re paid over the cap early, say a large bonus in March, the caps may arrive sooner than you think. The bonus tax calculator shows how a lump sum changes CPP and EI for the year.
How do payroll deductions differ by pay frequency?
They don’t change the yearly total. Weekly, biweekly, twice a month and monthly pay all add up to the same year. What changes is the size of each cheque. The payroll deductions calculator lets you choose the frequency, and the take-home pay calculator shows the yearly picture in one screen.
Paid by the hour? Turn your wage into a salary first with the hourly to salary calculator. Employers who want the cost side can read our page on payroll taxes in Canada.
What does your employer pay on top?
Your employer matches your CPP contribution dollar for dollar and pays 1.4 times your EI premium. So on the $100,000 example, the employer’s share of CPP and EI is more than the $283.53 you see taken off each cheque in the early weeks. That cost doesn’t come off your pay, and it doesn’t show on your stub, but it’s part of what you cost to employ.
Limits of these numbers
A few things we don’t model. Benefits, pension plans and union dues. Taxable benefits such as a company car. Provincial payroll taxes paid by employers. And the Ontario Health Premium, which rises in steps, so a marginal rate can look higher than the rate table suggests near $72,000 and $200,000.
The sources behind this page
Rates and maximums for CPP, CPP2 and EI come from the Canada Revenue Agency and the Employment and Social Development Canada notice on the 2026 EI rate. Federal brackets are from the CRA’s rates page, dated June 2026. The cheque-by-cheque figures are ours, worked out with the same rates.
Frequently asked questions
What are the payroll deductions in Canada?
Income tax, CPP (QPP in Quebec) and EI, plus anything your employer adds such as benefits or a pension plan.
What is the 2026 CPP rate for employees?
5.95% on pay between $3,500 and $74,600, then 4% on pay from $74,600 to $85,000.
What is the 2026 EI premium?
$1.63 per $100 of insurable earnings up to $68,900 outside Quebec, which is a maximum of $1,123.07. In Quebec the rate is $1.30.
Why does my pay go up at the end of the year?
CPP and EI stop once you pass their yearly limits. On $100,000 paid biweekly that happens around cheques 18 to 23.
Do payroll deductions change with pay frequency?
The yearly total stays the same. Each cheque is just a smaller or larger share of it.
All payroll and salary calculators
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