Updated Checked by the Tax-Services.ca editorial team How we check
PAYE net is a British phrase, and we’ve assumed you mean the Canadian version: the pay left after your employer takes off income tax and the two payroll contributions, CPP and EI. In Ontario in 2026, a $60,000 salary leaves $47,339.75 a year, or $3,944.98 a month. So about 79 cents of each dollar reaches you.
Is there a PAYE system in Canada?
Not under that name. Canada has payroll deductions. Your employer takes tax off each cheque, along with CPP and EI, and sends it all to the Canada Revenue Agency on your behalf. The stub shows gross pay at the top, the deductions in the middle and the net figure at the bottom.
The method is close to PAYE, but the details aren’t the same. Income tax is charged by the federal government and by your province, and the two get added together. That’s why the same salary gives a different net in Ontario, Alberta and Manitoba. If you’ve just moved here from the UK or Ireland, the biggest surprises are usually CPP and EI, which have no exact twin under PAYE, and the fact that the final bill is settled with a return each spring.
What comes off a $60,000 salary?
The take-home pay calculator gives this split for Ontario.
| Item | Per year |
|---|---|
| Gross pay | $60,000.00 |
| Federal income tax | $5,338.30 |
| Ontario income tax | $2,982.20 |
| CPP | $3,361.75 |
| EI | $978.00 |
| Net pay | $47,339.75 |
Paid every two weeks, that’s $1,820.76 a cheque. Income tax is the biggest bite, at $8,320.50 between the two governments. CPP and EI together take $4,339.75.
How are CPP and EI worked out?
They’re flat percentages of your pay, with a ceiling. For 2026 the CRA’s CPP contribution page gives a rate of 5.95% on earnings above a $3,500 exemption, with a maximum employee contribution of $4,230.45 a year. That maximum is reached at $74,600 of pay. There’s also a second CPP layer on earnings above $74,600, and our engine counts it up to $85,000. EI is 1.63% of pay up to $68,900 outside Quebec, so the most anyone pays is $1,123.07, which the CRA’s EI premium page confirms.
Look at what that does at higher pay. Past $68,900 EI stops growing. Past the CPP ceilings, CPP stops too. Income tax keeps climbing with every extra dollar, which is why bigger paycheques keep a smaller share of themselves, and why $90,000 in Ontario leaves 74.7% while $40,000 leaves 82.0%.
How much does the province change your net pay?
A lot more than most people expect. Same $60,000, same federal tax, same CPP and EI. Only the provincial line changes.
| Province | Provincial tax | Net pay per year | Per month |
|---|---|---|---|
| Alberta | $2,631.30 | $47,690.65 | $3,974.22 |
| Ontario | $2,982.20 | $47,339.75 | $3,944.98 |
| Manitoba | $4,549.55 | $45,772.41 | $3,814.37 |
Manitoba takes about $1,900 more a year than Alberta on the same salary. Whether that matters to you depends on rent, wages and everything else about where you live, and a pay stub won’t tell you that.
What if you know the net pay you want?
Then work backwards. Say you need $50,000 a year after deductions in Ontario. The engine says your gross pay has to be about $64,136. Check that in the net to gross calculator, which is useful when you’re comparing a job offer against what your current job puts in your account.
If you want to know what a raise does to the net line, the salary increase calculator shows it. The payroll deductions calculator lays out the deductions per pay period.
Why your stub may not match
Ours is a yearly estimate that counts only the basic personal amount and the CPP and EI credits. Your employer’s software works from your TD1 forms, so extra claims and a second job change the stub, and so do union dues and workplace pension contributions. So does an RRSP taken off at source.
The stub is also a running guess. The final tax is settled when you file, and a refund or a balance owing follows from that. If the net line is off by a lot, check the TD1 you gave your employer first.
Where do the CPP and EI dollars go?
They aren’t just another tax. CPP builds your future retirement pension, and EI is the insurance that pays benefits if you lose work or take leave. Take Nadia, who earns $60,000 in Mississauga: $4,339.75 of her year goes into those two, and none of it is gone for good in the way income tax is. That’s worth remembering when the stub looks lean.
What this page is based on
CPP and EI rates and ceilings are from the Canada Revenue Agency‘s 2026 contribution tables. Income tax uses 2026 federal and provincial data from the CRA payroll tables. All example figures are our own engine’s output, rounded to the cent, for a single employee with no other credits. No government body has reviewed or endorsed what you read here.
Frequently asked questions
Does Canada have PAYE?
Not by that name. Employers deduct income tax, CPP and EI from each cheque and send it to the CRA, which is called payroll deductions.
How much do I take home on $60,000 in Ontario?
Our engine gives $47,339.75 a year, about $3,944.98 a month, after income tax, CPP and EI.
Why does my province change my net pay?
Federal tax, CPP and EI are the same everywhere outside Quebec, but each province charges its own income tax. On $60,000, Manitoba takes about $1,900 more than Alberta.
How do I find the gross pay for a net pay I want?
Work backwards. To keep $50,000 a year in Ontario, gross pay needs to be about $64,136.
Why is my pay stub different from an online estimate?
Your employer uses your TD1 forms, benefits and other deductions that a simple estimate leaves out.