This tool estimates income tax on your raise using published rates. Your actual take-home increase may vary based on additional deductions specific to your employer and contract, such as:
For a precise figure, verify with your employer's payroll department or a tax professional.
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Enter your current salary and raise amount, then click Calculate My Raise.
A cost-of-living raise is typically 2–4%. A merit raise for strong performance is usually 5–10%. Anything above 10% is considered significant and often requires a promotion or competing job offer to justify.
The tool applies an estimated marginal tax rate based on your country and income level. This is a rough estimate — actual tax depends on deductions, credits, filing status and other factors. Always consult a tax professional for precise figures.
For salaries under $100,000, percentage is more common. For higher salaries, a fixed dollar amount can sometimes result in a larger actual raise. Use this calculator to compare both options.
Average salary increases in Canada for 2026 are expected to be around 3.5–4.5%, driven by inflation and labour market competition. Higher increases of 5–8% are common in tech, healthcare and skilled trades.
Only the portion of your income that falls into a higher bracket gets taxed at the higher rate — not your entire salary. This is called marginal taxation. The calculator estimates the tax on your raise amount specifically.
Once per year is standard, typically aligned with your performance review. If you have taken on significantly more responsibility, landed a major achievement, or received a competing offer, it is reasonable to ask outside the normal cycle.