How it's calculated
The converter spreads your pay evenly over the hours you are paid for, in either direction: an annual salary to an hourly wage, or an hourly wage to a yearly salary. It then works out your 2026 take-home pay in the province or territory you choose, after federal and provincial income tax, CPP (or QPP in Quebec) and EI, using the same CRA and Revenu Québec payroll formulas as the Canada income tax calculator.Canada Revenue Agency
The formula
- Paid hours per year = hours per week × paid weeks per year.
- Annual pay = your salary, or hourly wage × paid hours.
- Hourly wage = annual pay ÷ paid hours.
- Take-home pay = annual pay − federal tax − provincial tax − CPP/QPP − EI (− QPIP in Quebec).
- Hourly after tax = take-home pay ÷ paid hours. Weekly, every-two-weeks and monthly figures divide the yearly amounts by 52 (or your paid weeks), 26 and 12.
Worked example
A $60,000 salary for a 40-hour week, paid for 52 weeks, is $28.85 an hour before tax. In Ontario that is $22.76 an hour after tax, or $3,945 a month.
| Line | Gross | Take-home |
|---|---|---|
| Per hour | $29 | $23 |
| Per week | $1,154 | $910 |
| Every 2 weeks | $2,308 | $1,821 |
| Per month | $5,000 | $3,945 |
| Per year | $60,000 | $47,340 |
Going the other way, $25 an hour for 37.5 hours a week in Alberta is $48,750 a year, and $39,640 after tax.
Assumptions and limitations
- Same hours every week, no overtime. Every hour is paid at the same rate.
- Basic claim only. Tax assumes you claim only the basic personal amounts on your TD1 forms, with no RRSP or pension contributions from pay.
- Paid weeks. Use fewer paid weeks for unpaid time off. Paid vacation and statutory holidays are part of the paid weeks.
- Withholding, not your final tax. These are the amounts deducted from pay; credits you claim when you file can change your final tax.