Payroll · Alberta
Alberta take-home pay.
What lands in your account after Alberta and federal tax, CPP and EI — using CRA’s own payroll formulas.
An Alberta paycheque calculator for 2026, following CRA’s T4127 Payroll Deductions Formulas. Enter your gross pay and frequency and it itemises every statutory deduction.
Alberta has the shortest deduction list in Canada — two income taxes, CPP and EI, and nothing else. The one wrinkle is factor K5P, an Alberta-only clawback of 25% of its own credits above $4,896.
Inputs
Your Alberta paycheque
Fill the form and press Calculate.
What comes off an Alberta paycheque
- Federal income tax — 2026 brackets, basic personal amount of $16,452 phasing down to $14,829, plus the Canada Employment Amount of $1,501.
- Alberta income tax — 8% on the first $61,200 and 10% above it, against the country’s largest basic personal amount of $22,769.
- CPP and EI — 5.95% plus CPP2 at 4%, and 1.63% respectively.
That is the whole list. No surtax, no health premium, no provincial parental insurance levy — the shortest statutory deduction list of any province in Canada.
A short list is not automatically the biggest cheque. On this page’s assumptions an Alberta employee on $85,000 nets about $64,000 a year against $64,600 in British Columbia and $63,700 in Ontario, because BC’s lower brackets beat Alberta’s 8% and 10% at that income. Alberta moves in front of both at around $150,000 and stays there.
The one Alberta-only wrinkle: factor K5P
CRA’s T4127 formula contains an Alberta-only step. Where the combined value of an employee’s Alberta basic personal credit and their CPP and EI credits exceeds $4,896, Alberta reduces the total by 25% of the excess.
No other province or territory has an equivalent factor, and it is applied at source, so it is already in your withholding. It is modest in size but it means Alberta withholding cannot be reproduced simply by swapping Alberta’s rates into a generic formula — which is exactly what most national paycheque calculators do.
CPP and EI in 2026
- CPP: 5.95% of pensionable earnings between the $3,500 basic exemption and the $74,600 first ceiling — a maximum employee contribution of $4,230.45.
- CPP2: a further 4% on earnings between $74,600 and the second ceiling of $85,000, a maximum of $416.00.
- EI: 1.63% of insurable earnings up to $68,900, a maximum employee premium of $1,123.07.
Both stop once the ceiling is reached, so an Alberta employee earning above $85,000 finishes their EI premiums and their CPP2 contributions partway through the year and every cheque after that is larger. Only 4.95 of the 5.95 CPP points earn a tax credit; the remaining 1% and all of CPP2 are deducted from taxable income instead.
How this is calculated
The numbers follow CRA’s T4127 Payroll Deductions Formulas, including the Alberta K5P credit reduction. It assumes a full year at a constant salary and TD1 claim code 1 — the basic personal amount and nothing else.
Not modelled: other TD1 credits, registered pension contributions, union dues, and anything your employer deducts by agreement.
Sources
Every rate, threshold and ceiling on this page is taken from the official publication linked below. Last verified 2 September 2026.
- CRA T4127 — Payroll Deductions Formulas — the governing source for every withholding figure on this page. Two 2026 editions exist: the 122nd, effective 1 January 2026, and the 123rd, effective 1 July 2026 and currently in force. This page uses full-year annual rates, not the prorated mid-year catch-up rates the 123rd edition publishes for July–December withholding.
- Government of Canada — CPP contribution rates, maximums and exemptions — 5.95% to $74,600, CPP2 at 4% to $85,000
- CRA — EI premium rates and maximum insurable earnings — 1.63% to $68,900 outside Quebec, 1.30% in Quebec
- Government of Alberta — Personal income tax rates and credits
Frequently asked questions
Is Alberta take-home pay higher than other provinces?
At higher salaries, yes. On this page’s assumptions an Alberta employee on $160,000 nets about $113,800 a year against roughly $113,300 in BC and $109,800 in Ontario, because Alberta charges no surtax and no health premium and its rate is still 10% where Ontario’s surtax is compounding.
At $85,000 the picture reverses: Alberta nets about $64,000 against BC’s $64,600, because BC’s 5.6% and 7.7% brackets are lower than Alberta’s 8% and 10%. Alberta’s reputation rests on the absence of provincial sales tax and health levies as much as on its income tax rates.
What is factor K5P in Alberta payroll?
It is an Alberta-only step in CRA’s T4127 formula: where the combined value of the Alberta basic personal credit and the CPP and EI credits exceeds $4,896, Alberta reduces the total by 25% of the excess.
No other province or territory applies a credit reduction of this kind, and it is already reflected in your withholding.
How much is CPP and EI on an Alberta paycheque in 2026?
CPP is 5.95% of earnings between $3,500 and $74,600, capped at $4,230.45, plus CPP2 at 4% on earnings from $74,600 to $85,000, capped at $416.00. EI is 1.63% up to $68,900 of insurable earnings, capped at $1,123.07.
These are federal figures, identical in Alberta to every province outside Quebec.
Is there an Alberta health premium deducted from pay?
No. The Alberta Health Care Insurance Plan is publicly funded and carries no individual premium. Nothing equivalent to the Ontario Health Premium or the old BC MSP premium appears on an Alberta pay stub.
Any health-related line on an Alberta pay stub is a private benefits plan arranged by the employer.
Disclaimer
Estimate only — not tax or payroll advice. Follows CRA’s T4127 Payroll Deductions Formulas for a full year at a constant salary on TD1 claim code 1. Your real cheque depends on your TD1 claims, pension and union deductions, taxable benefits and mid-year changes. Confirm anything that matters with the CRA or a payroll professional.