Home → Wage Calculator
If you’re weighing two hourly job offers, deciding whether a raise is worth taking, or just want to know what an hourly rate actually turns into after tax, this calculator converts any wage into its real, after-tax per-hour value, so you can line up two offers side by side instead of comparing posted rates that don’t account for deductions.
+ Advanced options (overtime, bonus, TD1, RRSP)
Independent estimate based on 2026 CRA federal/provincial payroll formulas, Revenu Québec figures, and published CPP/CPP2/QPP/QPP2, EI and QPIP rates. Taxable benefits are assumed pensionable (count toward CPP/QPP) but not insurable (excluded from EI/QPIP), treatment varies by benefit type in practice. RRSP/pension contributions reduce taxable income only, not CPP/QPP or EI/QPIP earnings, matching standard payroll treatment. Not affiliated with the CRA or Government of Canada. Actual payroll may differ based on your employer's specific deductions and other factors. This tool does not constitute tax or financial advice.
Independent estimate of statutory employer payroll costs (CPP/QPP, EI, QPIP) based on 2026 published rates. Does not include optional employer costs such as extended health benefits, pension matching beyond CPP/QPP, workers' compensation premiums, or vacation pay accruals, which vary by employer and province. Not affiliated with the CRA or Government of Canada.
Your effective take-home wage is lower than your posted rate
Because taxes are calculated on your annualized income, your “net hourly rate” is always somewhat lower than your gross hourly wage, and the gap grows as your wage increases, due to progressive tax brackets.
Comparing Two Hourly Job Offers
A $2/hour difference between two offers rarely means a $2/hour difference in what lands in your bank account, since each offer’s extra income is taxed on top of what you’d already be earning. Run each offer through the calculator separately, same province, same hours per week, and compare the net hourly rate it shows, not the posted rate. That’s the number that actually tells you which job pays more once CPP, EI, and income tax are factored in. If one offer also includes paid overtime or a signing bonus, add those in the advanced options for each scenario so the comparison reflects total compensation, not just the base rate.
| Gross rate | Net rate |
|---|---|
| $17.60/hr | ~$14.44/hr |
| $20.00/hr | ~$16.20/hr |
| $25.00/hr | ~$19.87/hr |
| $30.00/hr | ~$23.24/hr |
Minimum wage across Canada, 2026
Minimum wage varies by province/territory and is updated periodically. Alberta remains lowest at $15.00/hour, while Nunavut is highest at $20.17/hour, see our province pages for current 2026 figures.
Frequently asked questions
How is my hourly wage annualized for tax purposes?
Hourly wage times hours per week times 52 weeks, assuming consistent full-year employment. Adjust the hours per week field if your schedule differs.
Why does my net hourly rate seem lower than expected?
Progressive tax brackets mean a larger share of higher wages goes to tax, so the gap between gross and net widens as your hourly rate increases.
Does this calculator account for paid vacation time?
It assumes 52 paid weeks per year. If some of your time off is unpaid, your actual annual earnings and tax will be lower than this estimate.
Can I compare two different hourly wage offers?
Yes, run the calculator once per wage with the same province and hours, and compare the net pay figures directly.
Does part-time work change how tax is calculated?
No, the same brackets and rates apply regardless of hours worked; only your total annual income changes the calculation.
Canada Paycheck Calculator · hourly wage tool