Payroll Deductions Formulas - 123rd Edition Effective July 1, 2026
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Payroll Deductions Formulas - 123rd Edition - Effective July 1, 2026
T4127(E) Rev. 26 (26/05)
La version française de cette publication est intitulée Formules pour le calcul des retenues sur la paie – 123e édition.
On this page
- What’s new for July 1, 2026?
- Chapter 1 – General information
- Chapter 2 – Personal tax credits returns (Form TD1)
- Chapter 3 – Glossary
- Chapter 4 – Option 1 – Tax Formulas
- Step 1 – Formula to calculate annual taxable income (A)
- Step 2 – Formula to calculate basic federal tax (T3)
- Step 3 – Formula to calculate the annual federal tax payable (T1)
- Step 4 – Formula to calculate annual basic provincial or territorial tax (T4)
- Step 5 – Formulas to calculate the annual provincial or territorial tax deduction (T2)
- Chapter 5 – Option 2 – Tax formulas based on cumulative averaging
- Chapter 6 – Canada Pension Plan
- Chapter 7 – Employment Insurance
- Chapter 8 – Rates and amounts
- Claim codes effective July 1, 2026
Is this guide for you?
This guide is published biannually, effective January 1st and effective July 1st. For the July release, if the proposed changes are effective retroactively, the guide will use prorated amounts for the last six months of the year, for Option 1. This is to offset the amounts used for the first six months.
Use this guide if you are a payroll software provider or a company which develops its own in-house payroll solution.
This guide has the formulas you need to determine federal, provincial (except Quebec), and territorial income taxes, Canada Pension Plan (CPP) contributions, and employment insurance (EI) premium deductions. The formulas also let you calculate payroll deductions for income sources such as commission, pension, bonuses, and retroactive pay increases.
The formulas used in this guide to calculate statutory deductions have been approved for purposes of the Income Tax Act, the Canada Pension Plan, and the Employment Insurance Act, as well as their related regulations and any amendments proposed to these acts.
For more information on income amounts that are subject to payroll deductions, visit canada.ca/payroll.
If you have questions about the formulas in this guide, visit canada.ca/taxes.
All the updates in this guide are highlighted by grey boxes.
Distribution of this guide
This guide is available in electronic format only.
Electronic mailing lists – more ways to serve you!
We provide an electronic service that can notify you immediately, free of charge, of any changes for payroll deductions.
To subscribe, go to canada.ca/cra-email-lists and enter your business’s email address for each mailing list that you want to join.
Payroll Deductions Online Calculator
You can use the Payroll Deductions Online Calculator (PDOC) to verify your payroll deductions in most commonly occurring situations. The formulas provided in this guide produce results that are generally more precise than those obtained by using PDOC.
The calculator includes an option to help you make sure that enough Canada Pension Plan contributions and employment insurance premiums have been withheld for full-year employees.
It calculates payroll deductions for the most common pay periods, as well as the deductions for the applicable province (except Quebec) or territory. The calculation is based on exact salary figures.
PDOC is available at canada.ca/pdoc.
Payroll Deductions Tables
The tax deductions for Canada Pension Plan contributions are imbedded in the tables of the guides T4032, Payroll Deductions Tables and T4008, Payroll Deductions Supplementary Tables. The users are not required to take any additional steps to include this deduction.
See the publications T4032, Payroll Deductions Tables and T4008, Payroll Deductions Supplementary Tables for more details.
You can choose to print only the pages or information that you need. For more information on payroll, see our webpage at canada.ca/payroll.
What’s new for July 1, 2026?
This guide reflects some income tax changes recently announced which, if enacted as proposed, would be effective July 1, 2026. Please refer to the 122nd edition for any sections that have not been reproduced. We recommend that you use the PDOC, the publication T4032 Payroll Deductions Tables, or the publication T4008 Payroll Deductions Supplementary Tables, and the formulas in this guide for withholding, starting with your first payroll in July 2026.
Provincial and Territorial Changes
Below are the provincial and territorial tax changes effective July 1, 2026. The current years figures for the most used rates, amounts, and claim codes can be found in Chapter 8.
Please note that there is no change for Alberta, Manitoba, New Brunswick, Northwest Territories, Nova Scotia, Nunavut, Ontario, Saskatchewan, Yukon or Outside Canada. For information on Quebec provincial tax, refer to Revenu Québec.
British Columbia
On February 17, 2026, the Government of British Columbia announced a change to the lowest personal income tax rate and the BC tax reduction. For 2026 and subsequent years, the lowest personal tax rate is increased from 5.06% to 5.60%.
Since the employers have used a lower tax rate for the first six months of the year, a prorated lowest personal income tax rate of 6.14% will apply for the remaining six months commencing with the first payroll in July. The tax rates and brackets are as follows:
- For income under $50,363, the tax rate is 6.14% (prorated)
- For income from $50,363 to $100,728, the tax rate is 7.70%
- For income from $100,728 to $115,648, the tax rate is 10.50%
- For income from $115,648 to $140,430, the tax rate is 12.29%
- For income from $140,430 to $190,405, the tax rate is 14.70%
- For income from $190,405 to $265,545, the tax rate is 16.80%
- For income of $265,545 and over, the tax rate is 20.50%
In addition, for 2026 and subsequent years, the basic reduction is increased from $562 to $690. The basic reduction amount was indexed to $575 effective January 1, 2026. Since this amount was used for the first six months of the year, a prorated basic reduction amount of $805 will apply for the remaining six months.
See Table 8.1 for rates, income thresholds, and constants and Table 8.2 for other rates and amounts. The Option 2 rates will not be prorated.
Newfoundland and Labrador
On April 29, 2026, the Government of Newfoundland and Labrador announced an increase to the Basic Personal amount (BPA) from $11,188 to $13,094 effective January 1, 2026.
Since the employees have received a lower basic personal amount for the first six months of the year, a prorated basic personal amount of $15,000 will apply for the remaining six months commencing with the first payroll in July. If an employee has submitted a TD1NL prior to July 1, 2026, with the lower basic personal amount, employers do not need a new TD1NL to change it to the prorated amount.
The Option 2 personal amounts will not be prorated.
Prince Edward Island
On April 14, 2026, the Government of Prince Edward Island introduced a new income tax bracket. For 2026 and subsequent years, taxable income above $200,000 is subject to a 20% tax rate.
Since the employers have used a lower tax rate for the first six months of the year, a prorated rate of 21% will apply for the remaining six months commencing with the first payroll in July. The tax brackets and rates are as follows:
- For income under $33,928, the tax rate is 9.50%
- For income from $33,928 to $65,820, the tax rate is 13.47%
- For income from $65,820 to $106,890, the tax rate is 16.60%
- For income from $106,890 to $142,520, the tax rate is 17.62%
- For income from $142,520 to $200,000, the tax rate is 19.00%
- For income of $200,000 and over, the tax rate is 21.00% (prorated).
See Table 8.1 for rates, income thresholds, and constants. The Option 2 rates will not be prorated.
Upcoming Changes for January 1, 2027
British Columbia
On February 17, 2026, the Government of British Columbia announced that for 2027 to 2030 taxation years, indexation for personal income tax brackets, and NRTCs is temporarily paused at their 2026 levels, except for the Renter’s tax credit. Indexation will resume for 2031 and subsequent taxation years.
Canada Pension Plan (CPP)
On April 28, 2026, the Government of Canada announced its intention to reduce the contribution rate of the base CPP from 9.90% to 9.50%, effective January 1, 2027. This means for employees and employers, the base contribution rate will decrease from 4.95% to 4.75%. The first additional contribution rates and second additional contribution rates will not be impacted.
Chapter 1 – General information
As the general information has not changed, this section has not been reproduced.
Chapter 2 – Personal tax credits returns (Form TD1)
As there are no updates to Chapter 2, this section has not been reproduced.
Chapter 3 – Glossary
All factor definitions appear only in the Glossary unless further details are required in specific situations.
Table 3.1 Glossary
| Factor | Meaning (for complete details, see the formulas) |
|---|---|
| A | Annual taxable income |
| B | Gross bonus, retroactive pay increase, vacation pay when vacation is not taken, accumulated overtime payment or other non-periodic payment |
| B1 | Gross bonuses, retroactive pay increases, vacation pay when vacation is not taken, accumulated overtime payments or other non-periodic payments year-to-date (before the pay period) |
| BPAF | Federal Basic Personal Amount |
| BPAMB | Basic Personal Amount for Manitoba |
| BPANS | Basic Personal Amount for Nova Scotia |
| BPAYT | Basic Personal Amount for Yukon |
| C | Canada (or Quebec) Pension Plan contributions for the pay period |
| C2 | Second additional Canada (or Quebec) Pension Plan contributions for the pay period |
| CEA | Canada Employment Amount, a non-refundable tax credit used in the calculation for K4 and K4P |
| D | Employee’s year-to-date (before the pay period) Canada Pension Plan contribution with the employer |
| DQ | Employee’s year-to-date (before the pay period) Quebec Pension Plan contribution with the employer |
| D1 | Employee’s year-to-date (before the pay period) employment insurance premium with the employer |
| D2 | Employee’s year-to-date (before the pay period) second additional Canada Pension Plan contribution with the employer |
| D2Q | Employee’s year-to-date (before the pay period) second additional Quebec Pension Plan contribution with the employer |
| E | Total commission expenses deductions reported on Form TD1X |
| EI | Employment insurance premiums for the pay period |
| F | Payroll deductions for the pay period for employee contributions to a registered pension plan (RPP) for current and past services, a registered retirement savings plan (RRSP), to a pooled registered pension plan (PRPP), or a retirement compensation arrangement (RCA). For tax deduction purposes, employers can deduct amounts contributed to an RPP, RRSP, PRPP, or RCA by or on behalf of an employee to determine the employee’s taxable income |
| F1 | Annual deductions such as childcare expenses and support payments requested by an employee or pensioner and authorized by a tax services office or tax centre |
| F2 | Alimony or maintenance payments required by a legal document dated before May 1, 1997, to be payroll-deducted authorized by a tax services office or tax centre |
| F3 | Employee registered pension plan or registered retirement savings plan contributions deducted from the current non-periodic payment. You can also use this field or design another to apply other tax-deductible amounts to the non-periodic payment, such as union dues |
| F4 | Employee registered pension plan or registered retirement savings plan contributions deducted from the year-to-date non-periodic payments. You can also use this field or design another to apply other tax-deductible amounts to the non-periodic payment, such as union dues |
| F5 | Deductions for Canada Pension Plan additional contributions for the pay period |
| F5A | Deductions for Canada (or Quebec) Pension Plan additional contributions for the pay period deducted from the periodic income |
| F5B | Deductions for Canada (or Quebec) Pension Plan additional contributions for the pay period deducted from the non-periodic payment |
| F5Q | Deductions for Quebec Pension Plan additional contributions for the pay period |
| G | Gross commission amount including gross salary at the time of payment, plus any taxable benefits for commission remunerated employees who have filled out Form TD1X. When an employee has not filed Form TD1X, tax is calculated the regular way |
| HD | Annual deduction for living in a prescribed zone, as shown on Form TD1 |
| I | Gross remuneration for the pay period. This includes overtime earned and paid in the same pay period, pension income, qualified pension income, and taxable benefits, but does not include bonuses, retroactive pay increases, or other non-periodic payments |
| I1 | Total remuneration for the year reported on Form TD1X. This includes commission payments, salary (where applicable), non-periodic payments, and taxable benefits |
| IE | Insurable earnings for the pay period, including insurable taxable benefits, bonuses, and retroactive pay increases |
| K | Federal constant. The constant is the tax overcharged when applying the 20.5%, 26%, 29%, and 33% rates to the annual taxable income A |
| KP | Provincial or territorial constant |
| K1 | Federal non-refundable personal tax credit (the lowest federal tax rate is used to calculate this credit) |
| K1P | Provincial or territorial non-refundable personal tax credit (the lowest tax rate of the province or territory is used to calculate this credit) |
| K2 | Base Canada Pension Plan contributions and employment insurance premiums federal tax credits for the year (the lowest federal tax rate is used to calculate this credit). Note: If an employee has already contributed the maximum CPP and EI, for the year with the employer, use the maximum base CPP contribution and the maximum EI premium to calculate the credit for the rest of the year. If, during the pay period in which the employee reaches the maximum, the CPP and EI, when annualized, is less than the annual maximum, use the maximum base CPP contribution and the maximum EI premium in that pay period |
| K2P | Provincial or territorial base Canada Pension Plan contributions and employment insurance premiums tax credits for the year (the lowest provincial or territorial tax rate is used to calculate this credit). If an employee reaches the maximum CPP or EI for the year with an employer, the instructions in the note for the K2 factor also apply to the K2P factor. For employees paid by commission, use the federal K2 formula for commissions and replace the lowest federal rate in the K2 formula with the lowest provincial or territorial tax rate |
| K2Q | Base Quebec Pension Plan contributions, employment insurance premiums, and Quebec Parental Insurance Plan premiums federal tax credits for the year (the lowest federal tax rate is used to calculate this credit) |
| K2R | Base Canada Pension Plan contributions and employment insurance premiums tax credits for the year (the lowest federal tax rate is used to calculate this credit), for employees that are transferred from Quebec to a location outside Quebec. The term “location outside Quebec” refers to a province or territory outside Quebec |
| K2RP | Provincial or territorial base Canada Pension Plan contributions and employment insurance premiums tax credits for the year (the lowest provincial or territorial tax rate is used to calculate this credit), for employees that are transferred from Quebec to a location outside Quebec. The term “location outside Quebec” refers to a province or territory outside Quebec |
| K2RQ | Base Quebec Pension Plan contributions, employment insurance premiums, and Quebec Parental Insurance Plan premiums federal tax credits for the year (the lowest federal tax rate is used to calculate this credit), for employees that are transferred to Quebec from a location outside Quebec. The term “location outside Quebec” refers to a province or territory outside Quebec |
| K3 | Other federal non-refundable tax credits (such as medical expenses and charitable donations) authorized by a tax services office or tax centre |
| K3P | Other provincial or territorial non-refundable tax credits (such as medical expenses and charitable donations) authorized by a tax services office or tax centre |
| K4 | Federal non-refundable tax credit calculated using the Canada employment amount (the lowest federal tax rate is used to calculate this credit) |
| K4P | Territorial non-refundable tax credit calculated using the provincial or territorial Canada employment amount (the lowest territorial tax rate is used to calculate this credit) |
| K5P | Provincial supplemental non-refundable tax credit (the lowest provincial tax rate is used to calculate this credit) |
| L | Additional tax deductions for the pay period requested by the employee or pensioner as shown on Form TD1 |
| LCF | Federal labour-sponsored funds tax credit |
| LCP | Provincial or territorial labour-sponsored funds tax credit |
| M | Accumulated federal and provincial or territorial tax deductions (if any) to the end of the last pay period |
| M1 | Year-to-date tax deducted on all payments included in B1 |
| N | The number of days in the current year since the last payment. The minimum basic exemption amount of $67.30 is included in the formula in line with CPP legislation |
| NI | Net income for the year from the employer |
| P | The number of pay periods in the year |
| PI | Pensionable earnings for the pay period, or the gross income plus any taxable benefits for the pay period, including bonuses and retroactive pay increases where applicable |
| PM | The total number of months during which CPP and/or QPP contributions are required to be deducted (used in the proration of maximum contribution). For detailed information and examples, visit canada.ca/payroll |
| PR | The number of pay periods left in the year (including the current pay period) |
| R | Federal tax rate that applies to the annual taxable income A |
| S | Provincial tax reduction (only applies to Ontario and British Columbia) |
| S1 | Annualizing factor |
| S2 | Basic amount used in the calculation of Factor S (only applies to Ontario and British Columbia) |
| T | Estimated federal and provincial or territorial tax deductions for the pay period |
| T1 | Annual federal tax deduction |
| T2 | Annual provincial or territorial tax deduction (except Quebec) |
| T3 | Annual basic federal tax |
| T4 | Annual basic provincial or territorial tax |
| TB | Tax deductions, i.e., bonuses or retroactive pay increases, payable now |
| TC | “Total claim amount,” reported on federal Form TD1. If Form TD1 is not filed by the employee or pensioner, calculate TC using BPAF formula, and for non-resident individuals, TC is $0. If the claim code is E, T = $0. If the province is Ontario, even if the claim code is E, the Ontario Health Premium is payable on annual income over $20,000 |
| TCP | “Total claim amount,” reported on the provincial or territorial Form TD1. If this form is not filed, TCP is the provincial or territorial basic personal amount, refer to Table 8.2. For Manitoba and Yukon, use BPAMB and BPAYT formulas respectively |
| U1 | Union dues for the pay period paid to a trade union, an association of public servants, or dues required under the law of a province to a parity or advisory committee or similar body |
| V | Provincial or territorial tax rate for the year (does not apply to Quebec, outside Canada, or in Canada beyond the limits of any province or territory) |
| V1 | Provincial surtax calculated on the basic provincial tax (only applies to Ontario) |
| V2 | Additional tax calculated on taxable income (only applies to the Ontario Health Premium) |
| W | The greater of year-to-date (before the pay period) pensionable earnings (PIYTD or GYTD) and employee’s Year’s Maximum Pensionable Earnings (YMPE). This is used to calculate Factor C2 |
| Y | Additional provincial tax reduction amount based on the number of eligible dependents used in the calculation of Factor S (only applies to Ontario) |
| YAMPE | Year’s Additional Maximum Pensionable Earnings |
| YMPE | Year’s Maximum Pensionable Earnings |
| YTD | Year-to-date, not including current pay period |
All factor definitions appear only in the glossary unless further details are required in specific situations.
Chapter 4 – Option 1 – Tax Formulas
As the Option 1 – Tax formulas have not changed, they have not been reproduced.
Step 1 – Formula to calculate annual taxable income (A)
As the formula to calculate the annual taxable income and the explanatory variables have not changed, they have not been reproduced.
Step 2 – Formula to calculate basic federal tax (T3)
As the formula to calculate the basic federal tax payable and the explanatory variables have not changed, they have not been reproduced.
Step 3 – Formula to calculate the annual federal tax payable (T1)
As the formula to calculate the annual federal tax payable and the explanatory variables have not changed, they have not been reproduced.
Step 4 – Formula to calculate annual basic provincial or territorial tax (T4)
As the formula to calculate the annual basic provincial or territorial tax and the explanatory variables have not changed, they have not been reproduced.
Step 5 – Formulas to calculate the annual provincial or territorial tax deduction (T2)
British Columbia
K1P = 0.0614 × TCP
Where:
TCP = The total of personal non‑refundable tax credits amounts reported on Form TD1BC. If Form TD1BC is not filed, TCP is $13,216.
K2P = [(0.0614 × (P × C × (0.0495/0.0595), maximum $3,519.45 × (PM/12))) + (0.0614 × (P × EI, maximum $1,123.07))]
K2RP = [(0.0614 × (P × C × (0.0495/0.0595), maximum ($3,519.45 × (PM/12) – (DQ × (0.0495/0.0630)) + (DQ × (0.0530/0.0630))))) + (0.0614 × (P × EI, maximum $1,123.07))]
S = Where A ≤ $25,570, S is equal to the lesser of:
(i) T4;
(ii) $805
= Where $25,570 < A ≤ $44,952, S is equal to the lesser of:
(i) T4;
(ii) $805 – [(A – $25,570) × 3.56%]
= Where A > $44,952
= $0
Newfoundland and Labrador
K1P = 0.0870 × TCP
Where:
TCP = The total of personal non‑refundable tax credits amounts reported on Form TD1NL. If Form TD1NL is not filed, TCP is $15,000.
Chapter 5 – Option 2 – Tax formulas based on cumulative averaging
As the formula to calculate the estimated federal and provincial or territorial tax deductions for the pay period and the explanatory variables have not significantly changed, only section related to the changes have been reproduced.
British Columbia
K1P = 0.056 × TCP
Where:
TCP = The total of personal non‑refundable tax credits amounts reported on Form TD1BC. If Form TD1BC is not filed, TCP is $13,216.
K2P = [(0.056 × (P × C × (0.0495/0.0595), maximum $3,519.45 × (PM/12))) + (0.056 × (P × EI, maximum $1,123.07))]
K2RP = [(0.056 × (P × C × (0.0495/0.0595), maximum ($3,519.45 × (PM/12) – (DQ × (0.0495/0.0630)) + (DQ × (0.0530/0.0630))))) + (0.056 × (P × EI, maximum $1,123.07))]
S = Where A ≤ $25,570, S is equal to the lesser of:
(i) T4;
(ii) $690
= Where $25,570 < A ≤ $44,952, S is equal to the lesser of:
(i) T4;
(ii) $690 – [(A – $25,570) × 3.56%]
= Where A > $44,952
= $0
Newfoundland and Labrador
K1P = 0.0870 × TCP
Where:
TCP = The total of personal non‑refundable tax credits amounts reported on Form TD1NL. If Form TD1NL is not filed, TCP is $13,094.
Chapter 6 – Canada Pension Plan
As the formula to calculate the Canada Pension Plan contributions and the explanatory variables have not changed, they have not been reproduced.
Chapter 7 – Employment Insurance
As the formula to calculate the employment insurance premiums and the explanatory variables have not changed, they have not been reproduced.
Chapter 8 – Rates and amounts
Only the sections pertaining to changes effective July 1, 2026, have been reproduced.
Table 8.1 Rates (R, V), income thresholds (A), and constants (K, KP) effective July 1, 2026
| 1st | 2nd | 3rd | 4th | 5th | 6th | 7th | 8th | ||
|---|---|---|---|---|---|---|---|---|---|
| Federal | A | 0 | 58,523 | 117,045 | 181,440 | 258,482 | |||
| R | 0.1400 | 0.2050 | 0.2600 | 0.2900 | 0.3300 | ||||
| K | 0 | 3,804 | 10,241 | 15,685 | 26,024 | ||||
| AB | A | 0 | 61,200 | 154,259 | 185,111 | 246,813 | 370,220 | ||
| V | 0.0800 | 0.1000 | 0.1200 | 0.1300 | 0.1400 | 0.1500 | |||
| KP | 0 | 1,224 | 4,309 | 6,160 | 8,628 | 12,331 | |||
| BC | A | 0 | 50,363 | 100,728 | 115,648 | 140,430 | 190,405 | 265,545 | |
| V | 0.0614 | 0.0770 | 0.1050 | 0.1229 | 0.1470 | 0.1680 | 0.2050 | ||
| KP | 0 | 786 | 3,606 | 5,676 | 9,061 | 13,059 | 22,884 | ||
| MB | A | 0 | 47,000 | 100,000 | |||||
| V | 0.1080 | 0.1275 | 0.1740 | ||||||
| KP | 0 | 917 | 5,567 | ||||||
| NB | A | 0 | 52,333 | 104,666 | 193,861 | ||||
| V | 0.0940 | 0.1400 | 0.1600 | 0.1950 | |||||
| KP | 0 | 2,407 | 4,501 | 11,286 | |||||
| NL | A | 0 | 44,678 | 89,354 | 159,528 | 223,340 | 285,319 | 570,638 | 1,141,275 |
| V | 0.0870 | 0.1450 | 0.1580 | 0.1780 | 0.1980 | 0.2080 | 0.2130 | 0.2180 | |
| KP | 0 | 2,591 | 3,753 | 6,943 | 11,410 | 14,263 | 17,117 | 22,823 | |
| NS | A | 0 | 30,995 | 61,991 | 97,417 | 157,124 | |||
| V | 0.0879 | 0.1495 | 0.1667 | 0.1750 | 0.2100 | ||||
| KP | 0 | 1,909 | 2,976 | 3,784 | 9,283 | ||||
| NT | A | 0 | 53,003 | 106,009 | 172,346 | ||||
| V | 0.0590 | 0.0860 | 0.1220 | 0.1405 | |||||
| KP | 0 | 1,431 | 5,247 | 8,436 | |||||
| NU | A | 0 | 55,801 | 111,602 | 181,439 | ||||
| V | 0.0400 | 0.0700 | 0.0900 | 0.1150 | |||||
| KP | 0 | 1,674 | 3,906 | 8,442 | |||||
| ON | A | 0 | 53,891 | 107,785 | 150,000 | 220,000 | |||
| V | 0.0505 | 0.0915 | 0.1116 | 0.1216 | 0.1316 | ||||
| KP | 0 | 2,210 | 4,376 | 5,876 | 8,076 | ||||
| PE | A | 0 | 33,928 | 65,820 | 106,890 | 142,520 | 200,000 | ||
| V | 0.0950 | 0.1347 | 0.1660 | 0.1762 | 0.1900 | 0.2100 | |||
| KP | 0 | 1,347 | 3,407 | 4,497 | 6,464 | 10,464 | |||
| SK | A | 0 | 54,532 | 155,805 | |||||
| V | 0.1050 | 0.1250 | 0.1450 | ||||||
| KP | 0 | 1,091 | 4,207 | ||||||
| YT | A | 0 | 58,523 | 117,045 | 181,440 | 500,000 | |||
| V | 0.0640 | 0.0900 | 0.1090 | 0.1280 | 0.1500 | ||||
| KP | 0 | 1,522 | 3,745 | 7,193 | 18,193 | ||||
Table 8.2 Other rates and amounts effective July 1, 2026
| Basic amount | Index rate | LCP rate | LCP amount | CEA | S2 | T4 to V1 | V1 rate | Abatement | Surtax | |
|---|---|---|---|---|---|---|---|---|---|---|
| Federal | BPAF | 0.020 | 0.150 | 750 | 1,501 | |||||
| AB | 22,769 | 0.020 | ||||||||
| BC | 13,216 | 0.022 | 805 | |||||||
| MB | BPAMB | 0.021 | 0.150 | 1,800 | ||||||
| NB | 13,664 | 0.020 | 0.200 | 2,000 | ||||||
| NL | 15,000 | 0.011 | ||||||||
| NS | 11,932 | 0.016 | 0.200 | 2,000 | ||||||
| NT | 18,198 | 0.020 | ||||||||
| NU | 19,659 | 0.020 | ||||||||
| ON | 12,989 | 0.019 | 300 | 0 | 0.000 | |||||
| 5,818 | 0.200 | |||||||||
| 7,446 | 0.360 | |||||||||
| PE | 15,000 | – | ||||||||
| QC | – | – | 0.165 | |||||||
| SK | 20,381 | 0.020 | 0.175 | 875 | ||||||
| YT | BPAYT | 0.020 | 1,501 | |||||||
| Outside Canada | 0.480 |
For information on 2026 federal personal amounts, see the form TD1, Personal Tax Credits Return and the form TD1X, Commission Income and Expenses for Payroll Tax Deductions. For information on 2026 provincial or territorial personal amounts, see the respective form TD1AB, TD1BC, TD1MB, TD1NB, TD1NL, TD1NS, TD1NT, TD1NU, TD1ON, TD1PE, TD1SK, or TD1YT. For information on QC amounts, refer to Revenu Québec.
Claim codes effective July 1, 2026
Table 8.11 British Columbia claim codes (prorated)
| Claim code | Total claim amount ($) from | Total claim amount ($) to | Option 1, TCP ($) | Option 1, K1P ($) |
|---|---|---|---|---|
| 0 | No claim amount | No claim amount | 0.00 | 0.00 |
| 1 | 0.00 | 13,216.00 | 13,216.00 | 811.46 |
| 2 | 13,216.01 | 16,190.00 | 14,703.00 | 902.76 |
| 3 | 16,190.01 | 19,164.00 | 17,677.00 | 1,085.37 |
| 4 | 19,164.01 | 22,138.00 | 20,651.00 | 1,267.97 |
| 5 | 22,138.01 | 25,112.00 | 23,625.00 | 1,450.58 |
| 6 | 25,112.01 | 28,086.00 | 26,599.00 | 1,633.18 |
| 7 | 28,086.01 | 31,060.00 | 29,573.00 | 1,815.78 |
| 8 | 31,060.01 | 34,034.00 | 32,547.00 | 1,998.39 |
| 9 | 34,034.01 | 37,008.00 | 35,521.00 | 2,180.99 |
| 10 | 37,008.01 | 39,982.00 | 38,495.00 | 2,363.59 |
Table 8.14 Newfoundland and Labrador claim codes (prorated)
| Claim code | Total claim amount ($) from | Total claim amount ($) to | Option 1, TCP ($) | Option 1, K1P ($) |
|---|---|---|---|---|
| 0 | No claim amount | No claim amount | 0.00 | 0.00 |
| 1 | 0.00 | 15,000.00 | 15,000.00 | 1,305.00 |
| 2 | 15,000.01 | 17,416.00 | 16,208.00 | 1,410.10 |
| 3 | 17,416.01 | 19,832.00 | 18,624.00 | 1,620.29 |
| 4 | 19,832.01 | 22,248.00 | 21,040.00 | 1,830.48 |
| 5 | 22,248.01 | 24,664.00 | 23,456.00 | 2,040.67 |
| 6 | 24,664.01 | 27,080.00 | 25,872.00 | 2,250.86 |
| 7 | 27,080.01 | 29,496.00 | 28,288.00 | 2,461.06 |
| 8 | 29,496.01 | 31,912.00 | 30,704.00 | 2,671.25 |
| 9 | 31,912.01 | 34,328.00 | 33,120.00 | 2,881.44 |
| 10 | 34,328.01 | 36,744.00 | 35,536.00 | 3,091.63 |
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2026-05-21