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Updated for 2025 tax brackets • Federal + Provincial • CPP & EI included
Use this free Canadian income tax calculator to estimate your 2025 federal and provincial taxes. Enter your gross income and province to get a breakdown of taxes owed and your estimated net take-home pay.
2025 Income Tax Calculator
How Canadian Income Tax Works in 2025
Canada uses a progressive tax system meaning higher income is taxed at higher rates. You pay two layers of income tax: federal tax and provincial/territorial tax.
2025 Federal Tax Brackets
15% on the first $57,375
20.5% on $57,375 to $114,750
26% on $114,750 to $178,645
29% on $178,645 to $253,414
33% on income over $253,414
Other Payroll Deductions
Beyond income tax, employees contribute to:
CPP (Canada Pension Plan) — 5.95% on earnings between $3,500 and $68,500
EI (Employment Insurance) — 1.66% on insurable earnings up to $63,200
Tips to Reduce Your Tax Bill
Maximize RRSP contributions to reduce taxable income
Contribute to a TFSA for tax-free investment growth
Claim all eligible deductions: union dues, home office, childcare
Use the FHSA if you are saving for your first home
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