Why would two contracts at the same day rate pay differently?

The payment structure matters as much as the rate — a T4 agency contract has CPP and CPP2 split with the employer and no GST/HST to charge, while an incorporated contract means covering both sides of CPP yourself but potentially accessing the small-business corporate rate on income you don't draw out immediately.

Does this comparison include GST/HST?

Yes, where relevant — GST/HST is added on top of an incorporated or sole-proprietor rate rather than coming out of it, since it's collected on behalf of the CRA, not personal income.

Can I compare contracts in different provinces?

Yes — select each contract's province to apply the correct provincial tax brackets, since take-home pay on an identical rate can differ meaningfully between provinces.

Contract Comparison Calculator (Two Rates)

Compare two contract offers by rate type, status (incorporated, sole prop or T4 agency) and province to see the true net income each pays in 2026.

Contract A — annual income

Contract B — annual income

Contract B nets more

$8,783

Contract A — net income$44,459

Contract A — effective rate25.9%

Contract B — net income$53,242

Contract B — effective rate29.0%

Difference (B - A)$8,783

Comparing two contract offers on an apples-to-apples basis

Two contract offers with the same headline rate can pay very differently once you account for how each one is structured — hourly versus day rate, T4 agency payroll versus incorporated, and which province the work is based in all change your real net income.

How to compare two contracts fairly

Enter both contracts' rate, rate type and length.
Select how you'd be paid on each — through an agency's T4 payroll, as an incorporated contractor, or as a sole proprietor.
Compare the true annual net income each offer produces, not just the headline rate, once CPP, tax and, where relevant, GST/HST are applied.