Calculate your employment income kept on retirement in 2026

This calculator estimates the share of employment income kept by a pensioner who resumes employment.

Estimate employment income kept on retirement

It provides an overview of disposable income before and after returning to work. It gives an estimate of:

• the tax you would have to pay on your employment income;
• the amounts to be paid for certain mandatory contributions (such as contributions to the Québec Pension Plan [QPP]);
• government assistance that could decrease if your income increases (such as the Guaranteed Income Supplement).

The calculator also estimates the savings and tax reductions available to encourage experienced workers, such as:

• the tax credit for career extension;
• the optional contribution to the QPP;
• the deduction for workers;
• the work premium.

Details on the calculation

The calculation is based on common situations. It does not take into account:

• all income (e.g., dividends or rental income);
• all deductions or tax credits (e.g., medical expenses or alimony).

The calculator’s estimate assumes that each person is at least 55 years old. Only employment or retirement income is allowed, up to $250 000 per spouse.

No one is considered a dependent in the household. It is also assumed that everyone pays the premium for the Québec Prescription Drug Insurance Plan. For medical expenses, only the amount of this premium is included in the calculation.

Calculation example

Let us take the example of a 65‑year‑old pensioner who receives the following retirement income in 2026:

• QPP retirement pension: $10 000;
• withdrawals from RRSP: $15 000.

The person wants to estimate the net gain that $20 000 in annual employment income would provide.

With this additional income, the person would have to bear the following deductions:

• additional taxes and contributions: $6 754;
• reduction in government assistance: $932.

This represents a total of $7 686.

To help this person return to work, the government allows them to:

• stop contributing to the QPP: savings of $870;
• receive the tax credit for career extension: tax reduction of $1 728;
• take advantage of the deduction for workers and the Canada employment amount: tax reduction of $375.

These employment incentives therefore reduce the tax and contributions payable by $2 973.

Summary of the calculation

The calculator shows that a person who earns $20 000 at work keeps $15 287 after taxes and other deductions, or 76.4% of their employment income.

• Employment income: $20 000
• Net withholdings and government clawbacks: −$7 686
• Employment incentives: +$2 973
• Employment income retained: $15 287
• Percentage of employment income retained: 76.4%