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Canada vs United Kingdom: Taxes & Take-Home Pay 2026

On a $100,000 salary you keep $71,132 in Canada and $71,937 in United Kingdom — $805 more per year in United Kingdom ($67 a month). Single filer, standard deductions.

Updated 2026-10-03 · International figures converted at the exchange rate noted in sources; salaries entered in US dollars. Excludes retirement, health and cost-of-living differences.

Take-home pay at every salary

Gross salaryCanadaUnited KingdomDifference
$40,000$31,484 (21.3% tax)$33,446 (16.4% tax)-$1,962
$60,000$44,460 (25.9% tax)$47,846 (20.3% tax)-$3,387
$75,000$55,012 (26.7% tax)$57,437 (23.4% tax)-$2,425
$100,000$71,132 (28.9% tax)$71,937 (28.1% tax)-$805
$150,000$101,428 (32.4% tax)$97,339 (35.1% tax)$4,090
$250,000$156,575 (37.4% tax)$147,230 (41.1% tax)$9,345
0%26%53%79%105%$20,000$160,000$300,000

Where the money goes at $100,000

Income tax
$24,816
$23,409
CPP (base + first additional)
$2,971
$0
CPP2 (second additional)
$292
$0
Employment Insurance
$789
$0
Class 1 National Insurance (main rate)
$0
$3,981
Class 1 National Insurance (above UEL)
$0
$673

About taxes in Canada

  • Federal 2026 rates: 14% up to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482 and 33% above; the lowest rate was cut from 15% to 14% from 1 July 2025.
  • Ontario 2026 rates: 5.05% up to $53,891, 9.15% to $107,785, 11.16% to $150,000, 12.16% to $220,000 and 13.16% above.
  • The 2026 federal basic personal amount is $16,452 (reduced to $14,829 for net income above $258,482), and the Ontario basic personal amount is $12,989; both are non-refundable credits at the lowest rate.
  • CPP 2026: 5.95% employee contribution on earnings between the $3,500 basic exemption and the $74,600 YMPE (maximum $4,230.45), plus CPP2 at 4% between $74,600 and $85,000 (maximum $416).
  • EI 2026: employees outside Quebec pay $1.63 per $100 of insurable earnings up to $68,900, a maximum premium of $1,123.07.

About taxes in United Kingdom

  • For 2026/27 the Personal Allowance is £12,570, the basic rate of 20% applies to the first £37,700 of taxable income, 40% up to £125,140 and 45% above (England).
  • The Personal Allowance falls by £1 for every £2 of adjusted net income above £100,000, so it is fully withdrawn at £125,140.
  • Employee Class 1 National Insurance for 2026/27 is 8% on earnings between the Primary Threshold (£242 a week, £12,570 a year) and the Upper Earnings Limit (£967 a week, £50,270 a year), and 2% above.
  • The calculator applies National Insurance on annual earnings; in practice it is assessed per pay period, so irregular pay can produce slightly different results.
  • Student loan repayments, pension contributions, the Marriage Allowance and Scottish rates are not modelled.

Salary needed to keep the same take-home

If you move between Canada and United Kingdom, this is the gross salary (in US dollars) that leaves the same take-home pay after income tax and employee contributions.

Salary in CanadaTake-homeSame take-home in United Kingdom needsDifference
$50,000$37,859$46,129−$3,871 (-7.7%)
$75,000$55,012$70,819−$4,181 (-5.6%)
$100,000$71,132$98,613−$1,387 (-1.4%)
$150,000$101,428$162,392+$12,392 (8.3%)

Tax on your next $1,000

The marginal rate — the share of a raise that goes to tax and contributions — often matters more than the average rate.

SalaryCanadaUnited Kingdom
$40,00030.7%28.0%
$75,00030.3%42.0%
$100,00037.2%42.0%
$150,00041.2%62.0%
$250,00046.2%47.0%

What employers pay on top

Employer payroll and social contributions are not deducted from your pay, but they affect what employers can afford to offer.

Canada

  • Employer CPP: 5.95% — Matches the employee: 5.95% on earnings between $3,500 and $74,600 in 2026.
  • Employer CPP2: 4.00% — Matches the employee: 4% on earnings between $74,600 and $85,000 in 2026.
  • Employer EI premium: 2.28% — 1.4 times the employee rate (2.282%) on insurable earnings up to $68,900, a maximum of $1,572.30 per employee in 2026 (outside Quebec).

United Kingdom

  • Employer Class 1 National Insurance: 15.00% — 15% on earnings above the Secondary Threshold of £96 a week (about £5,000 a year) for 2026/27, with no upper limit.
  • Workplace pension (auto-enrolment minimum): 3.00% — At least 3% of qualifying earnings (£6,240 to £50,270) for auto-enrolled staff.

Typical pay and minimum wage

CanadaUnited Kingdom
Median earnings1,320 CAD ($927) — median weekly wage, full-time employees (Statistics Canada Labour Force Survey), 202539,039 GBP ($51,535) — median gross annual earnings, full-time employees (ONS ASHE), April 2025
Minimum wage18.15 CAD/hour ($12.75), from 1 April 2026 (federal rate for federally regulated sectors; provinces set their own)12.71 GBP/hour ($16.78), from 1 April 2026 (National Living Wage, age 21+)

How the two tax systems differ

CanadaUnited Kingdom
Tax year1 January – 31 December 20266 April 2026 – 5 April 2027
Filing a tax returnAlmost everyone files an annual T1 return even when tax is withheld at source, to claim credits and benefits; the deadline is 30 April (15 June if self-employed).Most employees pay through PAYE and never file a return; Self Assessment is needed mainly for self-employment over £1,000, untaxed income such as rent or investments, or Capital Gains Tax owed.
Consumption taxGST/HST 5% (reduced: HST of 13% (Ontario), 14% (Nova Scotia) or 15% (NB, NL, PEI) replaces the 5% GST in harmonized provinces). BC, Manitoba, Saskatchewan and Quebec add a separate provincial sales tax (QST 9.975% in Quebec).VAT 20% (reduced: 5% (e.g. home energy, children’s car seats); 0% on most food and children’s clothes)
RetirementThe Canada Pension Plan is mandatory: employees and employers each pay 5.95% on earnings between $3,500 and $74,600 plus 4% CPP2 up to $85,000 (Quebec runs the separate QPP). Workplace pensions and RRSPs are voluntary.Employers must auto-enrol eligible workers into a workplace pension; the legal minimum is 8% of qualifying earnings, of which the employee pays 5% (including tax relief) and the employer at least 3%. Workers can opt out.
HealthcareHealth care is universal and funded through taxes; provinces run their own insurance plans under the Canada Health Act, so medically necessary hospital and physician services carry no charge. Some provinces add a premium through the tax system, such as the Ontario Health Premium (up to $900).The NHS is funded mainly from general taxation and National Insurance and is free at the point of use for residents; there is no separate health premium or levy on pay.
Capital gainsOne-half of a capital gain is included in taxable income and taxed at your marginal rate.Gains above the £3,000 annual exempt amount are taxed at 18% within the basic-rate band and 24% above it.

Frequently asked questions

Is Canada or United Kingdom better for taxes?

At $100,000, United Kingdom leaves you $805 more per year after income and payroll taxes. The gap widens at higher incomes ($9,345 at $250,000).

How much is $60,000 after tax in Canada and United Kingdom?

$44,460 in Canada and $47,846 in United Kingdom.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.

  1. CRA – Tax rates and income brackets for 2026
  2. CRA – Indexation of personal income tax and benefit amounts
  3. CRA – T4032-ON Payroll Deductions Tables, January 2026
  4. CRA – T4127 Payroll Deductions Formulas, January 2026
  5. CRA – CPP contribution rates, maximums and exemptions
  6. CRA – EI premium rates and maximums
  7. European Central Bank – euro foreign exchange reference rates
  8. GOV.UK – Income Tax rates and allowances for current and past years
  9. GOV.UK – Rates and thresholds for employers: National Insurance 2026 to 2027
  10. CRA – GST/HST calculator and rates by province
  11. CRA – T4037 Capital Gains
  12. CRA – Important dates for individuals
  13. Health Canada – Canada’s health care system
  14. Government of Canada – Pay and minimum wage (federal labour standards)
  15. Statistics Canada – Table 14-10-0064-01 Employee wages by industry, annual
  16. GOV.UK – VAT rates
  17. GOV.UK – Workplace pensions: what you, your employer and the government pay
  18. GOV.UK – Capital Gains Tax rates
  19. GOV.UK – Check if you need to send a Self Assessment tax return
  20. GOV.UK – National Minimum Wage and National Living Wage rates
  21. ONS – Employee earnings in the UK: 2025 (ASHE)
  22. Rev. Proc. 2025-32 (2026 inflation adjustments incl. OBBBA)
  23. IRS: Tax inflation adjustments for tax year 2026, including OBBBA amendments
  24. IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500