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Canadian Income Tax Calculator 2025

Federal + provincial tax, CPP and EI — CRA 2025 rates for all provinces and territories.

✓Rates updated: January 2025Source: Canada Revenue Agency
Canada uses a combined federal-provincial tax system. Federal tax is calculated on net income after deducting the Basic Personal Amount ($15,705 in 2025), CPP contributions and EI premiums. Each province adds its own progressive tax on the same income — so your combined marginal rate in Nova Scotia can exceed 54% at the top, while Alberta residents pay no provincial sales tax and have lower combined rates. CPP and EI deductions also generate their own non-refundable federal tax credits at the 15% rate.
$
Take-Home / Month
$5,245
Take-Home / Year
$62,941
Effective Rate
21.3%
Take-home: $62,941Total tax: $17,059 | Marginal: 29.7%
DeductionAnnual% of income
Gross income$80,000100.0%
Federal income tax (after BPA credit)$6,9328.7%
Ontario provincial tax$5,2116.5%
CPP contributions (5.95%)$3,8684.8%
EI premiums (1.66%)$1,0491.3%
Total deductions$17,05921.3%
✓ Net take-home$62,94178.7%
Marginal Tax Rate
29.7%
Basic Personal Amount
$15,705
Max CPP Contribution
$3,867.50
⚠️ Estimate using 2025 CRA federal and provincial rates. Does not include surtaxes, other deductions, or non-refundable credits beyond BPA, CPP and EI. Consult a CPA or use CRA My Account for exact figures.

Frequently Asked Questions

What is the federal Basic Personal Amount (BPA) for 2025?

The federal Basic Personal Amount for 2025 is $15,705. This gives every taxpayer a non-refundable credit of 15% of that amount (~$2,356), reducing federal tax before any other credits are applied.

What are the Canadian federal income tax brackets for 2025?

Canada's 2025 federal tax brackets are: 15% on the first $57,375; 20.5% on $57,375–$114,750; 26% on $114,750–$158,519; 29% on $158,519–$220,000; and 33% on income above $220,000.

Do I pay provincial income tax on top of federal tax?

Yes. Canada uses a two-tier system — you pay both federal income tax and provincial or territorial tax. Each province sets its own rate schedules. Quebec residents also file a separate provincial return with Revenu Québec.

What are CPP and EI deductions and how much are they?

CPP (Canada Pension Plan) is 5.95% on earnings between $3,500 and $68,500, capped at $3,867.50 for 2025. EI (Employment Insurance) is 1.66% of insurable earnings up to a cap of $1,049.12 for 2025. Both generate non-refundable federal tax credits.

Which Canadian province has the lowest income tax rate?

Nunavut (starting at 4%) and the Northwest Territories (5.9%) have the lowest territorial rates. Alberta has a flat 10% provincial rate with no provincial sales tax, making it popular for higher earners. Nova Scotia has the highest top marginal rate at 21%.