1. What is Net Salary?

Net salary is the amount an employee takes home after all deductions. In British Columbia, these deductions include federal tax, provincial tax, Canada Pension Plan (CPP), and Employment Insurance (EI).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Annual salary before deductions
• Federal Tax — Based on 2025-2026 tax brackets
• BC Provincial Tax — Based on 2025-2026 BC tax brackets
• CPP — 5.95% of pensionable earnings up to maximum
• EI — 1.66% of insurable earnings up to maximum

3. Understanding Deductions

Federal Tax: Progressive tax based on income brackets. Higher income is taxed at higher rates.

BC Provincial Tax: British Columbia's progressive tax system with rates different from federal taxes.

CPP: Mandatory pension plan contribution (5.95% in 2025) up to a maximum annual contribution.

EI: Employment Insurance premium (1.66% in 2025) up to a maximum annual contribution.

4. Using the Calculator

Tips: Enter your annual gross salary in Canadian dollars. The calculator will estimate your net salary after all standard deductions for the 2025-2026 tax year.

5. Frequently Asked Questions (FAQ)

Q1: Are these tax rates final for 2025-2026?
A: Rates are based on current projections. Actual rates may change slightly when officially announced.

Q2: What about other deductions like union dues or benefits?
A: This calculator only includes mandatory government deductions. Other deductions would need to be subtracted separately.

Q3: How often are CPP and EI maximums updated?
A: These are adjusted annually based on average wage increases in Canada.

Q4: What if I have tax credits or deductions?
A: This calculator provides a basic estimate. For precise calculations, consult a tax professional.

Q5: Is this calculator valid for self-employed individuals?
A: No, self-employed individuals have different CPP contribution rules and don't pay EI premiums.