Canadian Severance Pay & Statutory Termination Notice Calculator
Estimez vos indemnités légales de licenciement selon les normes du travail (ESA/LNT), les indemnités de droit commun (jurisprudence Bardal) et les retenues d'impôt sur l'allocation de retraite.
Enter Your Details
Enter your details and click Calculate
Fill in your details on the left to see your full tax breakdown and analysis.
Recommended Tools
SponsoredSage
Market-leading accounting and invoicing software for businesses and entrepreneurs.
Shopify
The all-in-one commerce platform to start, run, and grow your business worldwide.
Calculation Methodology & Statutory Rules
Evaluates two severance components: 1) Statutory Minimums under provincial law (e.g., Ontario ESA: 1 week notice per year up to 8 weeks + 1 week severance per year up to 26 weeks if employer payroll >= $2.5M and 5+ yrs service; Quebec LNT: notice up to 8 weeks for 10+ yrs service).
2) Common Law / Reasonable Notice (Bardal Factors): factors in age, position seniority, length of service, and job market availability, yielding roughly 3-4 weeks pay per year of service up to 24 months maximum cap.
Also calculates single-lump Retiring Allowance tax withholding (10% on <=$5k, 20% on $5k-$15k, 30% on >$15k; or 15% fed + 15% QC in Quebec).
Frequently Asked Questions
Q1.What is the CPP/QPP contribution rate and ceiling for 2026 in Canada?
For 2026, employee and employer CPP base contribution rates are 5.95% each (11.9% for self-employed individuals) on pensionable earnings between the $3,500 basic exemption and the Year's Maximum Pensionable Earnings (YMPE / Tier 1 ceiling, approx $71,300). Additionally, the Second CPP/QPP tier (CPP2) applies a 4% employee/employer rate (8% self-employed) on income between the YMPE and the second statutory earnings ceiling ($81,200).
Q2.How do Federal and Provincial tax brackets interact for Canadian taxpayers?
Taxable income in Canada is subject to both Federal progressive tax brackets (ranging from 15% up to 33%) and Provincial income tax brackets (such as Ontario, British Columbia, Alberta, or Quebec). Combined top marginal tax rates range between 48% and 54% depending on provincial residency.
Q3.How does the Small Business Deduction (SBD) benefit incorporated CCPCs?
Canadian-Controlled Private Corporations (CCPCs) benefit from the federal Small Business Deduction, reducing the federal corporate tax rate to 9% on active business income up to the $500,000 business limit, resulting in combined federal/provincial corporate rates of approximately 9% to 12.2% depending on the province.
Disclaimer: Results are estimates based on standard tax rules for the 2026 tax year and are provided for informational purposes only. Individual circumstances (deductions, credits, specific state/local rules) may significantly affect your actual tax liability. Always consult a qualified tax professional or accountant for advice specific to your situation.