Canada Payroll Tax Calculator 2023
Estimate employee payroll deductions including federal and provincial income tax, CPP, and EI contributions
Introduction
🎯 What
Canada Payroll Tax Calculator 2023.
👥 Who
Employers, HR personnel, payroll managers, small business owners.
💡 Why
To estimate employee payroll deductions including federal and provincial income tax, CPP, and EI contributions.
💰 REQUIRED INPUTS
Exemptions
📊 CALCULATOR OUTPUT
Enter amounts to calculate.
Detailed Payroll Breakdown
Payroll Tax Overview
- Payroll taxes include:
- Federal income tax (withholding)
- Provincial/territorial income tax (withholding)
- Canada Pension Plan (CPP) contributions
- Employment Insurance (EI) premiums
- Calculated per pay period or annually
- Employers remit taxes to CRA on behalf of employees
Federal & Provincial Tax Logic
- Federal and provincial taxes applied using progressive tax brackets
- Credits reduce taxable income and withholding
- Pay period taxes = annual tax / number of pay periods
CPP & EI Calculation Logic
CPP_contribution = min(max(0, pensionable_income × 5.95%), 3,754.45)
EI_premium = min(max(0, insurable_income × 1.63%), 1,002.45)
Total Payroll Deduction
total_deduction = federal_tax + provincial_tax + CPP_contribution + EI_premium + other_deductions
net_income = gross_income − total_deduction
Allowances & Deductions
- Basic personal amount (federal & provincial)
- Age amount
- Disability credit
- Tuition/education credit
- RRSP contributions
- Union/professional dues
- Dependents
- Other eligible deductions
Examples
Example 1:
- Province: Ontario
- Gross annual income: 60,000
- Pay frequency: monthly
- Federal tax: 8,200 annually
- Provincial tax: 3,100 annually
- CPP: 3,000
- EI: 980
- Net annual income = 44,720
- Net monthly income = 3,727
Example 2:
- Province: Alberta
- Gross annual income: 120,000
- Pay frequency: bi-weekly
- Federal + provincial tax calculated using brackets
- CPP + EI capped at max
- Net income per pay period computed accordingly
Frequently Asked Questions
Q: Are payroll taxes the same across all provinces?
A: No, each province/territory has different tax rates and credits.
Q: Is CPP and EI mandatory?
A: Yes, contributions are required for eligible employees.
Q: Can deductions reduce taxable income below zero?
A: Non-refundable credits cannot; refundable adjustments may apply.
Q: Are payroll taxes calculated per pay period?
A: Yes, deductions are prorated according to pay frequency.
Q: Can employers adjust withholding for benefits?
A: Yes, adjustments for benefits, RRSP contributions, or other deductions can be applied.
DISCLAIMER
- This calculator is for informational and Google AdSense content use only.
- Rates and rules are for 2023 and based on CRA payroll guidelines.
- Figures are estimates, not legal, tax, or financial advice.
- Consult CRA or a licensed tax professional for official payroll calculations.