This page is a single reference table for the 2026 Canadian payroll and sales tax figures business owners look up most: CPP, CPP2, EI, BC and Ontario Employer Health Tax, GST/HST/PST by province, and corporate tax rates for Alberta, BC and Ontario. Every table states the date it was verified against a primary source and links to a full guide with worked examples plus the free calculator that applies it. Where a 2026 figure has not yet been published by the relevant authority, that is stated explicitly rather than estimated.
CPP and CPP2 (2026)
As of 2026 — verified against canada.ca / CRA CPP contribution rates, August 2026.
| Figure | 2026 value |
|---|---|
| CPP rate (base + first additional) | 5.95% |
| YMPE (Year's Maximum Pensionable Earnings) | $74,600 |
| Basic exemption | $3,500 |
| Max employee CPP contribution | $4,230.45 |
| Max employer CPP contribution | $4,230.45 |
| CPP2 rate (second additional) | 4.00% |
| YAMPE (second ceiling) | $85,000 |
| Max employee CPP2 contribution | $416.00 |
| Max employer CPP2 contribution | $416.00 |
| Self-employed CPP (both shares) | 11.90% base + 8% CPP2 |
Full mechanics, the self-employed rate, and a worked employer-cost example: CPP, CPP2 & EI explained. Calculate your own numbers: take-home pay calculator, employer payroll cost calculator.
EI (2026)
As of 2026 — verified against canada.ca / CRA EI premium rates, August 2026.
| Figure | 2026 value |
|---|---|
| Employee EI rate | 1.63% |
| MIE (Maximum Insurable Earnings) | $68,900 |
| Max employee EI premium | $1,123.07 |
| Employer multiple | 1.4× employee |
| Max employer EI premium | $1,572.30 |
| Basic exemption | None |
| Quebec | Separate QPIP rate applies — not shown here |
Details on the employer multiple, the EI Premium Reduction Program, and Quebec's parallel plan: CPP, CPP2 & EI explained. Model total hire cost: employer payroll cost calculator.
BC Employer Health Tax (2026)
As of 2026 — verified against gov.bc.ca Employer Health Tax rates and thresholds, August 2026.
| B.C. remuneration | EHT treatment |
|---|---|
| $0 – $1,000,000 | Exempt |
| $1,000,000.01 – $1,500,000 | 5.85% notch rate on the excess above $1,000,000 |
| Over $1,500,000 | 1.95% on the entire payroll |
| Instalment trigger | Prior-year EHT over $2,925 → quarterly instalments |
| Annual return + balance due | March 31 following the tax year |
Worked examples at each tier and registration/filing rules: BC Employer Health Tax guide. Calculate your liability: BC Employer Health Tax calculator.
Ontario Employer Health Tax (2026)
As of 2026 — verified against ontario.ca Employer Health Tax guidance, August 2026. Ontario's exact graduated-rate bands between $1M and $5M of payroll are set out in Ontario's EHT legislation; confirm the specific rate for a given payroll level against the current schedule rather than a single flat percentage.
| Ontario payroll | EHT treatment |
|---|---|
| Up to $1,000,000 | Exempt |
| $1,000,000 – $5,000,000 | Graduated rates on the excess, rising toward the 1.95% top rate |
| Over $5,000,000 | Exemption lost entirely — EHT applies to the whole payroll |
| Top rate | 1.95% |
| Next exemption adjustment | January 1, 2029 |
Full graduated-rate structure, the $5,000,000 cutoff, and a BC/Alberta comparison: Ontario Employer Health Tax guide. Model total payroll cost: employer payroll cost calculator.
GST, HST and PST by province (2026)
As of 2026 — verified against canada.ca and provincial revenue-agency published rates, August 2026.
| Province / region | Model | Combined rate |
|---|---|---|
| Alberta | GST only | 5% |
| British Columbia | GST + PST | 12% (5% GST + 7% PST) |
| Saskatchewan | GST + PST | 11% |
| Manitoba | GST + RST | 12% |
| Ontario | HST | 13% |
| Nova Scotia | HST | 14% |
| New Brunswick / Newfoundland & Labrador / PEI | HST | 15% |
| Quebec | GST + QST | 14.975% |
| NWT / Nunavut / Yukon | GST only | 5% |
| GST/HST registration threshold | — | $30,000 rolling |
Full registration rules, input tax credits, and filing frequency: GST, HST & PST in Canada guide. Calculate a sale: sales tax calculator, GST/HST registration calculator.
Corporate tax rates: Alberta, BC, Ontario (2026)
As of 2026 — Alberta figures verified against Alberta.ca / Tax and Revenue Administration, August 2026. BC figures verified against gov.bc.ca. Ontario figures verified against Bill 97, the Plan to Protect Ontario Act (Budget Measures), 2026, Royal Assent March 26, 2026. Federal small-business and general rates verified against canada.ca.
| Jurisdiction | Small-business combined rate | General combined rate | Small-business (SBD) limit |
|---|---|---|---|
| Federal (baseline) | 9% | 15% | $500,000 |
| Alberta | 11% | 23% | $500,000 |
| British Columbia | 11% | 27% | $500,000 |
| Ontario, before July 1, 2026 | 12.2% | 26.5% | $500,000 |
| Ontario, on/after July 1, 2026 | 11.2% | 26.5% | $500,000 |
The Alberta small-business deduction, the associated-corporation and passive-income grind rules, and the AT1 filing obligation: Alberta corporate tax guide. BC's rates and the PST-on-professional-services change: BC corporate tax guide. Ontario's mid-year rate cut and proration: Ontario corporate tax guide. Estimate your own liability: corporate tax calculator, corporate tax instalment calculator.
Not yet published for 2026
The CRA and provincial authorities publish some figures on a rolling basis rather than all at once each January. Where a rate or threshold used above has not yet been confirmed by its issuing authority at the time this page was last verified, this section is the place that says so rather than extrapolating a number: none of the figures in the tables above were outstanding as of the August 2026 verification date. If a reader spots a figure that has since changed, please use the contact page to flag it — see our editorial and fact-checking standards for how corrections are handled.
How RN Canada helps
RN Canada is an Edmonton-headquartered accounting and advisory firm, with a Vancouver office, that runs payroll compliance, GST/HST and PST filings, and corporate tax preparation for owner-managed businesses across Alberta and British Columbia. Every rate on this page is checked against the CRA, the relevant provincial authority, and the deep guide it links to, so a single glance answers "what's the 2026 number" without digging through a full article. Our founder, Ozgur Duymaz, holds a Ph.D. in accounting and finance and is a CPA (Canada), ACCA (UK) and CMA (US). For hands-on help applying these rates to your business, see our bookkeeping & payroll service or tax return preparation service, or browse the full tools hub for calculators built on the figures above.
Frequently asked questions
The maximum CPP2 contribution for 2026 is $416.00 each for employee and employer — 4% of the $10,400 band between the $74,600 YMPE and the $85,000 YAMPE. See our full CPP, CPP2 and EI guide for how the two CPP tiers interact.
CPP is 5.95% on pensionable earnings between the $3,500 basic exemption and the $74,600 YMPE, giving a maximum employee contribution of $4,230.45, matched by the employer. CPP2 adds a further 4% on the $74,600–$85,000 band. Full mechanics are in the CPP, CPP2 and EI guide.
EI is 1.63% on insurable earnings up to the $68,900 Maximum Insurable Earnings (MIE), giving a maximum employee premium of $1,123.07. Employers pay 1.4 times the employee rate — a maximum of $1,572.30. EI has no basic exemption, unlike CPP.
BC EHT exempts payrolls up to $1,000,000, charges a 5.85% notch rate on the amount between $1,000,000 and $1,500,000, and 1.95% on the whole payroll above $1,500,000. Quarterly instalments are required once last year's EHT exceeded $2,925.
BC EHT quarterly instalments, when triggered by prior-year EHT over $2,925, are due through the year with the annual return and any balance due by March 31, 2027 for the 2026 tax year. See the BC Employer Health Tax guide for the full schedule.
Alberta's combined federal-plus-provincial corporate tax rate is 11% on the first $500,000 of active business income (2% provincial + 9% federal) and 23% on income above that (8% provincial + 15% federal). Alberta charges no PST and no employer health tax.