Taxes for Nurses in Canada (2026)
Registered nurses and licensed practical nurses in Canada earn competitive salaries with strong union-negotiated benefits. Understanding your tax obligations helps you maximize take-home pay through eligible deductions.
Quick Tax Snapshot
Based on a typical nurses salary of $85,000 in Ontario (2026).
Gross Salary $85,000
Federal Income Tax -$10,227
Ontario Tax & Health Premium -$5,324
CPP Contributions -$4,646
EI Premiums -$1,123
Estimated Take-Home (Annual) $63,679
Effective tax rate: 25.1% • Marginal federal rate: 20.5% • Marginal Ontario tax & levy rate: 9.2%
Gross Salary
$85,000
Typical median (CAD)
Take-Home Pay
$63,679
After all deductions (ON)
Effective Rate
25.1%
Combined tax rate
Monthly Take-Home
$5,307
Approximate monthly
Key Tax Deductions for Nurses
- ✓ Professional membership fees (e.g., provincial nursing college registration)
- ✓ Union dues paid to nursing unions
- ✓ Work-related continuing education and licensing courses
- ✓ Employment expenses on T2200 (uniforms, supplies if required and unreimbursed)
- ✓ RRSP contributions to reduce taxable income
- ✓ Home office expenses if working from home (e.g., public health nurses)
Frequently asked questions
Can nurses deduct the cost of scrubs and uniforms?
If your employer requires you to wear a specific uniform and does not reimburse the cost, you may be able to claim it as an employment expense. You will need a completed T2200 form from your employer. General clothing that can be worn outside work typically does not qualify.
Are provincial nursing college registration fees tax-deductible?
Yes. Annual registration fees paid to a provincial nursing regulatory college (e.g., CNO in Ontario) are deductible as professional membership dues on line 21200 of your T1 return.
How much CPP and EI does a nurse pay on an $85,000 salary?
In 2026, a nurse earning $85,000 reaches both CPP earnings ceilings ($74,600 and $85,000), so contributions are capped at their annual maximums: approximately $4,646 in combined CPP contributions (base CPP plus the CPP2 additional tier) and $1,123 in EI premiums.
Do overtime earnings change my tax bracket?
Overtime pushes your total annual income higher, which may move a portion into a higher federal or provincial bracket. However, only the income above each bracket threshold is taxed at the higher rate — not your entire salary.
Calculate Your Actual Tax
The snapshot above uses a typical salary. Use our Income Tax Calculator to enter your exact income, province, and tax year for a personalized breakdown.
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