T4 Employee Take-Home Pay Calculator
Calculate your 2026 T4 employee take-home pay in Ontario — federal and provincial tax, CPP, CPP2 and EI — then see what the same money looks like as a contractor.
Estimated net annual income
$46,843
Gross income$60,000
Income tax$8,817
CPP (Canada Pension Plan — employee)$3,362
CPP (employer)$3,362
EI (Employment Insurance — employee)$978
EI (employer, 1.4x employee rate)$1,369
Total deductions$13,157
Effective tax rate21.9%
How your 2026 T4 pay breaks down, and what changes if you go independent
Most Canadian income tax and pay calculators stop at your T4 take-home number. This one starts there — 2026 federal and Ontario tax, CPP, the CPP2 second tier, and EI all applied to your actual salary — and then lets you see what the same gross amount would look like if you earned it instead as a sole proprietor or through your own corporation.
What's included in this take-home calculation
- Federal income tax using the 2026 brackets and basic personal amount ($16,452, phasing down to $14,829 for income over $181,440)
- Ontario provincial income tax and Ontario's own basic personal amount ($12,989)
- CPP at 5.95% up to the $74,600 earnings ceiling, plus CPP2 at 4% between $74,600 and $85,000
- EI at 1.63% up to the $68,900 insurable earnings ceiling
