Alberta Income Tax Calculator 2026
Enter your salary to see your 2026 federal and Alberta income tax, CPP and EI, and what you actually take home.
Your take-home pay
$47,690.66 a year
$1,834.26 every two weeks
| Gross income | $60,000.00 |
|---|---|
| Federal income tax | −$5,338.29 |
| Alberta income tax | −$2,631.30 |
| CPP | −$3,361.75 |
| CPP2 | −$0.00 |
| EI | −$978.00 |
| Take-home pay | $47,690.66 |
- Take-home
- Income tax
- CPP
- EI
- Average tax rate
- 13.3%
- Marginal tax rate
- 28.5%
Calculated in your browser. Your numbers never leave your device.
How this is calculated
We use the same formulas employers use for payroll: CRA’s T4127 Payroll Deductions Formulas, 122nd edition, effective January 1, 2026. The July 2026 edition made no changes for Alberta or federal tax, CPP or EI. We tested these formulas against CRA’s Payroll Deductions Online Calculator at incomes from $15,000 to $400,000 a year, and they match to the cent.
- CPP: 6% of your earnings above $3,500, up to$74,600. The most anyone pays is $4,230.45.
- CPP2: 4% of earnings between $74,600 and $85,000, up to $416.00.
- EI: 1.63% of earnings up to $68,900, up to $1,123.07.
- Taxable income: your income minus the “enhanced” part of CPP (the 1% first additional contribution) and all of CPP2. Those parts are a tax deduction, not a credit.
- Tax before credits: each slice of taxable income is taxed at its bracket’s rate, federally and by Alberta (tables below).
- Federal credits at 14%: the basic personal amount ($16,452, reduced gradually to $14,829 for net income between $181,440and $258,482), the Canada employment amount ($1,501), the base part of your CPP, and your EI.
- Alberta credits at 8%: the Alberta basic personal amount ($22,769), the base part of your CPP, and your EI. Alberta has no employment amount.
- Take-home pay = income − federal tax − Alberta tax − CPP − CPP2 − EI.
| Taxable income | Rate |
|---|---|
| $0 to $58,523 | 14% |
| $58,523.01 to $117,045 | 20.5% |
| $117,045.01 to $181,440 | 26% |
| $181,440.01 to $258,482 | 29% |
| Over $258,482 | 33% |
| Taxable income | Rate |
|---|---|
| $0 to $61,200 | 8% |
| $61,200.01 to $154,259 | 10% |
| $154,259.01 to $185,111 | 12% |
| $185,111.01 to $246,813 | 13% |
| $246,813.01 to $370,220 | 14% |
| Over $370,220 | 15% |
Worked example: $60,000 salary
An Alberta employee earning $60,000 a year with no other income or deductions:
| CPP: 5.95% × ($60,000 − $3,500) | $3,361.75 |
|---|---|
| EI: 1.63% × $60,000 | $978.00 |
| Taxable income: $60,000 − enhanced CPP of $565.00 | $59,435.00 |
| Federal tax after credits | $5,338.29 |
| Alberta tax after credits | $2,631.30 |
| Take-home pay | $47,690.66 |
Federal tax before credits is 14% of the first $58,523 plus 20.5% of the remaining $912.00. Credits then take 14% off the basic personal amount, the Canada employment amount, the base CPP and EI. Alberta tax is 8% of the whole $59,435.00, because it’s all inside Alberta’s first bracket, minus 8% of the Alberta basic personal amount, base CPP and EI. In total, 79.5% of the salary reaches your bank account.
What this calculator assumes
- All your income is employment income from one employer in Alberta, for the full year.
- You claim only the basic personal amounts on your TD1 forms. Other credits (tuition, disability, dependants) would lower your tax.
- It doesn’t include RRSP or pension contributions, union dues, benefits, or other payroll deductions.
- It doesn’t include the federal top-up tax credit, which only applies to people claiming more than $58,523 in non-refundable credits, or refundable benefits like the Canada workers benefit.
- Pay-period amounts are the annual amount divided evenly.
Frequently asked questions
How much tax do I pay on $60,000 in Alberta in 2026?
On a $60,000 salary you pay about $7,969.59 in income tax ($5,338.29 federal and $2,631.30 Alberta), plus $3,361.75 in CPP and $978.00 in EI. That leaves $47,690.66 a year, or about $1,834.26 every two weeks. Your average income tax rate is 13.3%, but each extra dollar you earn is taxed at 28.5%.
What are the Alberta tax brackets for 2026?
Alberta taxes the first $61,200 of taxable income at 8%, then 10% up to $154,259, 12% up to $185,111, 13% up to $246,813, 14% up to $370,220, and 15% above that. Federal tax is charged on top, starting at 14%. Each rate only applies to the income inside that bracket, not your whole income.
What is the difference between my average and marginal tax rate?
Your average rate is your total income tax divided by your income: what you pay overall. Your marginal rate is the tax on your next dollar, which is what matters for a raise, overtime or an RRSP deduction. At $100,000 in Alberta the average rate is 19.8% but the marginal rate is 30.5%, so a $1,000 RRSP contribution would cut your tax by about $305.
Why is my paycheque different from this calculator?
Your employer may deduct things this calculator leaves out, such as a pension plan, union dues, benefits or extra tax you asked for on your TD1. Pay-period amounts here are the annual figure divided evenly; a real paycheque is calculated one period at a time, so it can differ by a few dollars. If you earn more than the CPP and EI maximums, those deductions stop partway through the year, so your later paycheques are bigger.
What is CPP2, and why do I pay it?
CPP2 is a second, smaller Canada Pension Plan contribution that started in 2024. In 2026 you pay 4% on earnings between $74,600 and $85,000, up to $416.00 a year. It earns you a larger CPP pension later, and it is deducted from your income for tax, so it lowers your income tax slightly.
Will I get a tax refund?
If you only have one job and this calculator matches your situation, the tax taken from your pay should be close to what you owe, so any refund or balance owing will be small. You are more likely to get a refund if you contribute to an RRSP, pay union dues, have childcare or moving expenses, or donate to charity. A second job, investment income or a side business usually means you owe more.
How much is take-home pay on $40,000 a year in Alberta?
On $40,000 a year you take home about $33,332.41, or $2,777.70 a month. Income tax is $3,843.84, CPP is $2,171.75 and EI is $652.00. Alberta's basic personal amount of $22,769 is one of the highest in Canada, which keeps provincial tax low at this income.
Rates for tax year 2026 · Last updated