1. What is the Canadian Salary Calculator?

The Canadian Salary Calculator estimates your net income after all mandatory deductions including federal tax, provincial tax, Canada Pension Plan (CPP), and Employment Insurance (EI) contributions for the 2024-2025 tax year.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Your annual income before deductions
• Federal Tax — Calculated using progressive tax brackets
• Provincial Tax — Varies by province/territory
• CPP — Canada Pension Plan contribution (5.95% in 2024)
• EI — Employment Insurance premium (1.66% in 2024)

3. Understanding Canadian Payroll Deductions

Federal Tax: Progressive tax with rates from 15% to 33% based on income brackets.
Provincial Tax: Each province has its own tax rates and brackets.
CPP: Mandatory pension plan contribution up to annual maximum.
EI: Insurance program providing temporary income support.

4. Using the Calculator

Instructions: Enter your gross annual salary in CAD and select your province of residence. The calculator will estimate your net salary after all mandatory deductions.

5. Frequently Asked Questions (FAQ)

Q1: Are these calculations exact?
A: This provides an estimate. Actual deductions may vary based on additional factors like tax credits, bonuses, or other deductions.

Q2: What's the CPP contribution rate for 2024?
A: The employee contribution rate is 5.95% on earnings between $3,500 and $66,600.

Q3: How is EI calculated?
A: In 2024, employees pay 1.66% on earnings up to $63,100.

Q4: Why does provincial tax vary?
A: Each province sets its own tax rates and brackets in addition to federal taxes.

Q5: Are there other deductions not included?
A: Yes, this calculator doesn't account for voluntary deductions like RRSP contributions or union dues.