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Payroll taxes differ between provinces mostly in one place: the provincial income tax taken from your cheque. On a $70,000 salary that alone moves your take-home pay from $51,899 in Manitoba to $54,107 in Alberta, with CPP and EI the same outside Quebec.
“Payroll taxes” means two different things, though, and that’s where most of the confusion starts.
What do people mean by payroll taxes?
Employees hear it as everything deducted from the cheque: income tax, CPP or QPP, and EI. Employers hear it as what they pay on top of wages, such as their share of CPP and EI and, in some provinces, a health tax on the payroll.
This page covers both sides. The employee side we can back with numbers. On the employer side, the provincial payroll taxes vary by province and by size of payroll, and we couldn’t confirm the current rates from an official page, so we don’t quote them. Check your province’s finance ministry site for those.
Which parts are the same across provinces?
CPP and EI have one set of rules outside Quebec. In 2026 an employee pays 5.95% CPP on pay between $3,500 and $74,600, then a second tier of 4% up to $85,000, and EI at 1.63% up to $68,900 of pay. The maximums are $4,230.45 for the first CPP tier, $416 for the second and $1,123.07 for EI. The CRA’s CPP contribution rates and maximums page lists the $74,600 ceiling, the $3,500 exemption and the first-tier maximum.
Employers match CPP dollar for dollar and pay 1.4 times the employee’s EI. On $70,000 that’s $3,956.75 in CPP and $1,572.30 in EI on top of the wage.
Federal income tax is the same everywhere as well, apart from a Quebec abatement.
How big is the provincial gap on $70,000?
Here’s what one employee keeps in four provinces, from the same engine and with the same basic assumptions.
| Province | Provincial tax | Take-home pay |
|---|---|---|
| Alberta | $3,534.79 | $54,107.20 |
| Ontario | $3,855.73 | $53,786.27 |
| Saskatchewan | $4,972.67 | $52,669.32 |
| Manitoba | $5,742.67 | $51,899.32 |
Alberta and Manitoba are about $2,200 apart on the same salary. That’s real money, though it’s smaller than the gap in housing costs between many cities.
The federal tax ($7,278.19), CPP ($3,956.75) and EI ($1,123.07) are identical in every row. Try your own province in the take-home pay calculator.
Put it in monthly terms. Aisha is weighing a job offer in Calgary against staying in Winnipeg at the same $70,000. The table says Alberta leaves her about $184 more a month in take-home, which is the price of a decent grocery run and not much more. If rent in the new city is $300 higher, the tax saving is gone before she’s unpacked.
Why is Quebec different?
Quebec runs its own pension plan, QPP, in place of CPP, and collects its own parental insurance premium, QPIP. Quebec employees pay less EI as a result. On the same $70,000 the calculator shows $4,189.50 in QPP and $895.70 in EI, and Quebec residents also get a cut in federal tax.
A few Quebec details, including the work deduction and the size of the federal cut, follow published rules, but Quebec adds QPP and QPIP and its own return, so we give no Quebec take-home figure here. If you’re moving there, check Revenu Québec first.
Does it change at higher pay?
Yes, and the order shifts. At $140,000 Alberta still leaves the most, $101,058, then Ontario at $98,661, Saskatchewan at $97,887 and Manitoba at $95,137. High earners pay more in the provinces with steep top rates, so the gap can grow past $5,000.
The engine also shows a $50,000 salary in Alberta leaving $40,541 against $39,075 in Manitoba, so the gap is smaller at lower pay. That works out to roughly $122 a month, against about $184 at $70,000.
What does the employer pay on top?
Employers carry a bill employees never see. On a $70,000 salary the employer share is $3,956.75 for CPP plus $1,572.30 for EI, which is $5,529.05 on top of the wage. That cost is the same in every province outside Quebec, so it won’t tip a hiring decision between Calgary and Winnipeg. What can differ is the provincial payroll levy, and we haven’t quoted those. A small business owner should ask the province, not guess.
What mistakes should you avoid when comparing?
Don’t compare a salary in one province with a salary in another and stop at take-home pay. Rent, transit and insurance can cancel a tax saving quickly. And don’t forget the employer side. It’s a real cost of hiring, even though it never shows on your stub.
The engine leaves out credits beyond the basic personal amount, benefits and union dues. Some provincial figures, such as the British Columbia lowest rate and low-income reductions in a few provinces, are disputed between sources, which is why we left BC out of the table above. To size a raise or work backwards from a take-home target, use the salary increase calculator or the net to gross calculator. The payroll deductions calculator shows one pay period at a time.
What this page is based on
CPP, EI and the federal and provincial brackets are the 2026 figures from the Canada Revenue Agency and the provincial finance sites, checked on 29 September 2026. We aren’t a government service and we don’t speak for one.
Frequently asked questions
Do CPP and EI differ by province?
Not outside Quebec. Quebec has QPP, QPIP and a lower EI rate.
Which province takes the least tax from a $70,000 salary?
Of the five we compared, Alberta, where you keep $54,107.20.
What does an employer pay on top of wages?
CPP matching the employee's share and 1.4 times the employee's EI. On $70,000 that is $3,956.75 and $1,572.30.
Are there provincial payroll taxes for employers?
Some provinces charge one, but rates vary and we could not confirm them, so check your province's finance site.
Is the federal tax the same in every province?
Yes, except that Quebec residents get a reduction. We could not confirm its size, so check Revenu Québec.
All payroll and salary calculators
- Self-employed taxes in Canada: income, CPP and GST
How tax works when you are self-employed in Canada: reporting income and expenses, paying both halves of CPP, instalments and when to register for GST