Anyone making $100,000 in Canada will want to know how much of that will be taxed. Well, that depends on a few things. Primarily, your income will be taxed at both the federal and provincial levels, and you will also be making contributions to social programs like the Canada Pension Plan (CPP) and Employment Insurance (EI). In short, here’s a breakdown of how taxes will work in Canada in 2025.
Federal Income Tax on $100,000
Canada has a progressive tax system meaning as you make more money, you pay taxes at a higher rate. Some of the tax rates for the year of 2025 are:
- For the first 55,000 CAD, the tax rate is at 15%.
- For the next 55,001-100,000 CAD, the tax rate is at 20.5%.
So, for someone making $100,000, the tax for federal taxes is approximately $15,000 plus $9,225 which equals $24,225 CAD.
Provincial Income Tax
Every province in Canada has their own personal income tax which is as follows:
- Ontario: $6,000-$6,500 of tax for an income of 100,000 dollars.
- British Columbia: $5,000-$5,500 of tax.
- Quebec: $7,000-$8,000 of tax due to filing separately for the province and additional surtaxes.
Income tax is all the taxes combined, federal and provincial, so an Ontarian earning 100,000 dollars pays roughly 30,000 Cad in taxes while Quebec pays roughly 32,000-33,000 Cad in taxes.
Payroll Contributions
On top of income taxes, Canadians contribute to social programs:
- Canada Pension Plan (CPP): ~5.95% of income (up to a maximum)
- Employment Insurance (EI): ~1.66% of income (up to a maximum)
These contributions reduce take-home pay further but fund retirement benefits, healthcare, and employment insurance.
Tax Credits and Deductions in Canada
Canadian residents can also pay even less tax due to tax credits which decrease your liability:
- Basic Personal Amount – About $15,000 tax-free at the federal level.
- Provincial credits differ from province to province.
- Other possible deductions can also include the following: childcare expenses, Donations made to Charity, RRSP.
This helps to make the tax owed a lot less than the amount calculated initially.
Take-Home Pay
After federal and provincial taxes and payroll contributions, a Canadian earning $100,000 typically takes home around $68,000–$70,000 CAD, depending on the province and credits claimed.
If you earn around $100,000 in Canada and want to understand your real after-tax income — or trim your bill with smarter credits and deductions — Dimov Tax can model your situation and build a tax strategy custom-tailored to you. Contact us today for financial clarity.