How much of an extra CA$1,000 do you keep?

Compare the same person at two salaries

Our fictional Ontario employee moves from CA$60,000 to CA$61,000 of annual salary in the 2026 model. No voluntary contributions or other deductions are entered. The diagram separates additional take-home from additional modeled income tax and employee payroll deductions.

These are annual amounts in Canadian dollars. The example is reproducible from recorded engine inputs; it is not a claim about every employee or a guarantee of the next employer payment.

References: CRA · January 2026 payroll formulas · CRA · 2026 income tax rates

Additional income retained is not overall keep rate

The percentage retained from this increment uses the extra CA$1,000 as its denominator. Overall keep rate uses total gross income as its denominator. Using the overall rate to predict the next increment can miss brackets, credits and contribution thresholds.

The calculator’s marginal analysis asks what changes with more salary under the current inputs. A finite CA$1,000 increase can span a threshold. It is different from the marginal rate on a tiny additional amount and from the effective rate on all existing income.

References: CRA · Progressive tax rates and income brackets

Why your result can differ

Your starting salary and province affect which rules apply to the extra income. Employee contributions may continue or reach a limit. Income-dependent credits and supported deductions can also change the difference.

This model does not automatically subtract changes in government benefits. Bonus withholding and a part-year raise have their own payroll timing. Do not interpret a full-year salary comparison as a bonus-paycheque forecast.

References: CRA · January 2026 payroll formulas · Government of Canada · 2026 EI earnings and premium limits

Explore your own increase

Open Explore a raise after checking your current salary scenario. Compare annual gross and take-home changes together, then review the assumptions. The guide link opens the existing tool; it does not fill or overwrite your saved inputs.

For an offer decision, use the salary difference alongside benefits, expenses and employment conditions. Keeping more of the next increment is useful information, but it is only one part of the decision.

Sources and verification

Official references checked 2026-10-09. Examples reproduced with the existing TaxCalcy engine; no qualified human tax review is recorded.

• CRA · January 2026 payroll formulasEmployee contributions, basic credits and Ontario adjustments; annualized model reference
• CRA · 2026 income tax rates2026 federal and Ontario bracket schedules
• CRA · Progressive tax rates and income bracketsOnly each portion of taxable income is taxed at its applicable bracket rate
• Government of Canada · 2026 EI earnings and premium limitsEI premiums depend on insurable earnings and annual limits