Ontario Paycheque 2026: What Comes Off Your Pay
Learn how federal tax, Ontario tax, CPP, CPP2 and EI can affect an Ontario paycheque in 2026.
What's taken off your paycheque
Every Ontario paycheque can lose money to four things before it reaches you:
- Federal income tax — 14%–33% brackets, 2026.
- Ontario income tax — 5.05%–13.16% brackets plus surtax.
- CPP / CPP2 — 5.95% on earnings from $3,500 to $74,600 (max $4,230.45), plus 4% CPP2 on earnings from $74,600 to $85,000 (max $416).
- EI — 1.63% on insurable earnings to $68,900 (max $1,123.07).
CPP and EI stop once you hit their annual maximums — so take-home pay often rises late in the year for higher earners, even with no raise.
Example: $80,000 salary, paid monthly
| Per month | |
|---|---|
| Gross pay | $6,666.67 |
| Income tax (federal + Ontario) | ≈ $1,229 |
| CPP (until $4,230.45 max) | ≈ $353 |
| EI (until $1,123.07 max) | ≈ $94 |
| Take-home | ≈ $4,991 |
Simplified 2026 estimate: standard brackets and basic credits only, no pension, union dues or employer benefits. CPP maxes out around month 12 at this salary; EI around month 12 too.
Key points
- Four deductions: federal tax, Ontario tax, CPP/CPP2, EI.
- CPP and EI have annual caps — take-home can rise late in the year.
- Use the Ontario salary calculator for your exact salary and pay frequency.
Related tools
Ontario Salary Calculator · TFSA Calculator · RRSP Calculator · Mortgage Calculator
Worked example: $75,000 salary, step by step
Here is how a $75,000 Ontario salary breaks down in 2026, line by line — the same order the deductions appear on a typical pay stub:
| Line | Annual amount |
|---|---|
| Gross pay | $75,000.00 |
| Federal income tax | −$9,057.59 |
| Ontario income tax + health premium | −$4,747.02 |
| CPP (regular $4,230.45 + $16 CPP2) | −$4,246.45 |
| EI (capped at $1,123.07) | −$1,123.07 |
| Take-home pay | $55,825.87 |
That is $4,652.16 per month or $2,147.15 biweekly. Note the CPP2 line: $75,000 exceeds the 2026 first ceiling ($74,600) by $400, so 4% × $400 = $16 of second-tier CPP applies — easy to miss, but it is a real deduction. EI is already maxed because $75,000 exceeds the $68,900 maximum insurable earnings.
Why your paycheque changes through the year
At $75,000, your deductions are not flat across the year. EI hits its $1,123.07 annual maximum once your insurable earnings pass $68,900 — around month eleven — and regular CPP maxes at $4,230.45 near year-end. From that point on, those lines drop to near zero and your net pay per cheque rises, even with no raise.
This is also why a December bonus can feel smaller than expected: bonuses are taxed at your marginal rate, and by December your CPP/EI room may already be used up, so the bonus faces the full income-tax bite with no offsetting cap relief. None of this changes your annual total — it only changes the timing.
FAQ
How much CPP2 will I pay on a $75,000 salary?
About $16 for 2026: 4% on the $400 of earnings above the $74,600 first ceiling. CPP2 only matters once you cross that ceiling, and it caps at $416.
Why is my January paycheque smaller than my November one?
CPP and EI restart every January. Early in the year both deductions apply in full; once you hit the annual maximums ($4,230.45 CPP, $1,123.07 EI), they stop and your take-home per cheque rises.
Why did my paycheque get bigger in November?
You probably hit the annual CPP ($4,230.45) or EI ($1,123.07) maximum. Once capped, those deductions stop for the rest of the year and your net pay rises.
Are these official CRA calculations?
No. This site is an educational resource. Use CRA tools, payroll tables and your own CRA account for official information.