Updated Checked by the Tax-Services.ca editorial team How we check
A paycheck estimator answers one question: what lands in my account if something changes? Go from $65,000 to $68,250 in Ontario and you keep $2,090.40 more a year, or about $80 more every two weeks. That’s 64 cents of every extra dollar.
What does a paycheck estimator tell you that a stub doesn’t?
Your stub shows this period. An estimator shows the year, so you can test a change before it happens. A raise, a new job in another province, an RRSP plan, a bonus.
It works from your pay before deductions. It takes off federal and provincial income tax, then CPP and EI, and gives you what’s left. The take-home pay calculator runs it both ways, from gross to net or from the net you want back to the gross you’d need.
How much of a raise do you really keep?
Less than the headline, and the share moves with where you start. The salary increase calculator compares two salaries side by side. Here are four cases from our 2026 estimates.
| Change | Extra pay before deductions | Extra pay you keep |
|---|---|---|
| $65,000 to $68,250 (5%) | $3,250 | $2,090.40 |
| $75,000 to $85,000 | $10,000 | $6,753.60 |
| $75,000 to $85,000, Alberta | $10,000 | $6,672.00 |
| $75,000 to $85,000, British Columbia | $10,000 | $6,892.80 |
The first two rows are Ontario, and they show something odd at first glance. The smaller raise keeps a smaller share, 64% against 68%. Part of the reason is that EI stops at $68,900 of earnings and CPP’s main rate stops at $74,600, per the CRA’s 2026 figures. A worker at $65,000 still pays both on most of the raise, while a worker at $75,000 is past those ceilings. We haven’t split the gap line by line, so take that as the likely cause, not a proof.
The province gap is small here, under $250 on $10,000. Don’t move cities for it.
Where does the rest of a $3,250 raise go?
Let’s pull the first row apart. Say Priya in Ottawa moves from $65,000 to $68,250. The extra $3,250 is still under the $68,900 EI ceiling, so EI takes 1.63%, about $53. CPP takes 5.95% of it, about $193. Those two together are roughly $246. Income tax takes around $913 of what remains, and the $2,090.40 left over is what reaches her account.
The CPP part isn’t a pure loss, by the way. It goes toward your own pension, though you won’t see it until much later. The rates and ceilings are on the CRA’s CPP contribution rates and maximums page and its EI premium rates and maximums page.
Does saving in an RRSP cost you the full amount?
No. Put $5,000 into an RRSP on a $75,000 salary in Ontario and your take-home pay falls by $3,367.50, because the contribution comes off your taxable income. Income tax drops from $12,704.65 to $11,072.15 in the estimate. The rest of the $5,000 is money you still own, parked somewhere you can’t spend it easily.
The RRSP calculator shows how that money might grow. The estimator here only shows the cost today.
Where do estimates and real paychecks part ways?
Three places come up again and again. Your employer may use a different tax-credit claim than the tool does, since the estimate counts only the basic personal amount plus the pension and EI credits. Benefits, union dues and pension contributions aren’t in it. And a bonus or overtime cheque can be taxed at a different rate on the day than your return settles at in the spring.
Timing matters too. If CPP or EI hits its yearly maximum in October, your November cheque jumps, and a tool that spreads the year evenly won’t show that.
For a bonus on its own, use the bonus tax calculator. For a shift-based job with overtime, the overtime pay calculator is the better fit, because overtime rules differ by province and we haven’t confirmed every one.
What if your first stub doesn’t match the estimate?
Don’t assume payroll got it wrong. Check the easy things first: your pay period (weekly, biweekly or twice a month changes the per-cheque figure), any benefit premiums, union dues, and whether a TD1 form on file claims something other than the basic amount. If the gap is a few bucks, that’s normal rounding and timing. If it’s bigger and nothing above explains it, ask payroll which deductions and tax-credit claim they’re using.
Which estimate do you trust most?
The one you can check against a document. Use the estimator to plan, then hold your first real stub up against it. Treat it as a ballpark for decisions like a raise or a new job, and your own pay statement as the final word.
What this page is based on
CPP and EI ceilings are the CRA‘s 2026 figures. Tax brackets come from the federal and provincial data in our calculators, rechecked on 29 September 2026. The examples are our own calculator results and aren’t tied to any person. We aren’t a government service and we don’t speak for one.
Frequently asked questions
How much of a $10,000 raise do I keep in Ontario?
From $75,000 to $85,000, our 2026 estimate keeps $6,753.60 after income tax, CPP and EI.
Does an RRSP contribution reduce take-home pay by the full amount?
No. On $75,000 in Ontario a $5,000 contribution lowers take-home pay by $3,367.50, because it cuts your income tax.
Why do smaller raises keep a smaller share?
EI stops at $68,900 of earnings and CPP's main rate at $74,600, so pay below those lines still bears both.
Why does my real paycheck differ from the estimate?
The estimate leaves out benefits, union dues, pension contributions and extra tax credits.
Can I use it if I work in Quebec?
Yes, it switches to QPP and QPIP. Quebec tax details came partly from secondary sources, so treat that result with extra care.
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