Doctor salary in Canada after tax — 2026
Most Canadian physicians aren't salaried employees — they bill provincial health plans as independent fee-for-service practitioners, then pay their own practice overhead. That single fact changes almost everything about how a doctor's real take-home pay should be calculated, and opens the door to a tax strategy most other professions don't have.
Take-home pay by career stage — 2026
Residents are salaried (via provincial resident agreements, e.g. PARO in Ontario). Practising physicians bill gross clinical payments, then deduct practice overhead before the remainder is personal taxable income — the figures below already reflect typical overhead for each specialty. Deductions are federal income tax, CPP (5.95% up to the YMPE) and EI (1.66% up to the ceiling); provincial tax is not included.
| Stage / Specialty | Taxable Income | Monthly Net (federal only) | Effective Rate |
|---|---|---|---|
| Resident, PGY-1 | C$68,000 | C$4,610/mo | 18.7% |
| Resident, PGY-5 (Chief) | C$80,000 | C$5,414/mo | 18.8% |
| Family Medicine (after ~30% overhead) | C$196,000 | C$12,748/mo | 21.9% |
| General Surgery (after ~25% overhead) | C$332,250 | C$20,490/mo | 26.0% |
| Ophthalmology (after ~35% overhead) | C$377,000 | C$22,988/mo | 26.8% |
| Diagnostic Radiology (after ~20% overhead) | C$448,800 | C$26,997/mo | 27.8% |
Practising-physician figures are net of typical overhead applied to CIHI's average gross clinical payments per specialty (family medicine ~C$280,000 gross, general surgery ~C$443,000, ophthalmology ~C$580,000, diagnostic radiology ~C$561,000). Actual overhead varies by clinic model and province. Excludes provincial tax. Source: CIHI National Physician Database 2025–26, PARO/PAIRO resident scales.
The medical professional corporation (MPC) — a tax lever few other jobs get
Because most Canadian physicians are unincorporated business owners rather than employees, every province allows them to incorporate as a Medical Professional Corporation. This is arguably the single biggest financial planning decision in a Canadian medical career, and it doesn't exist for salaried professions.
- Active business income earned inside an MPC is taxed at the small business rate — roughly 11–13% combined federal/provincial on the first C$500,000 of active income, versus personal marginal rates that exceed 50% at the top provincial brackets
- A physician can pay themselves a modest salary or dividend to cover living expenses, and leave the remainder inside the corporation, deferring the gap between the small business rate and their personal marginal rate until they actually withdraw the funds
- Retained earnings inside the MPC can be invested, effectively letting the doctor invest with pre-personal-tax dollars — a meaningful compounding advantage over decades
- The trade-off: incorporation carries real accounting and legal setup costs (typically C$2,000–C$5,000/year in ongoing compliance), and withdrawing large amounts later still triggers personal tax
A family physician earning C$280,000 in gross billings who incorporates and only draws C$120,000 personally can defer tax on the remaining C$160,000-ish (after overhead) at the small business rate rather than their marginal rate — often a five-figure annual tax deferral. Almost every specialist earning above roughly C$150,000 net consults an accountant about incorporating; most do so by mid-career.
Ontario vs Alberta vs Quebec — where the after-tax gap is largest
Provincial tax varies enormously for high-earning physicians. Alberta's flat-ish provincial structure and absence of a provincial health premium make it consistently the strongest province for physician take-home; Quebec's higher provincial rates and additional health contribution make it the weakest for the same gross billings. Ontario sits in the middle, though residents there also pay the Ontario Health Premium — a distinct line item (up to roughly C$900/year) embedded in the Ontario tax return rather than a separate payroll deduction, easy to miss when comparing provinces on paper.
Salary distribution — where Canadian physicians sit
| Percentile | Taxable Income | Monthly Net (federal only) |
|---|---|---|
| P25 (residents) | ~C$68,000–C$80,000 | ~C$4,610–C$5,410/mo |
| P50 Median (family medicine) | ~C$196,000 | ~C$12,750/mo |
| P75 (general surgery) | ~C$332,000 | ~C$20,490/mo |
| P90 (radiology / ophthalmology) | ~C$377,000–C$449,000 | ~C$22,990–C$27,000/mo |
Excludes provincial tax and assumes unincorporated practice. Physicians who incorporate and retain earnings inside an MPC will see materially different personal take-home. Source: CIHI National Physician Database 2025–26.
Frequently asked questions
A PGY-1 resident on C$68,000 takes home around C$4,610/month federally. A family physician with taxable income of C$196,000 (after typical overhead) takes home about C$12,748/month. A general surgeon at C$332,250 takes home roughly C$20,490/month. These figures exclude provincial tax and assume unincorporated practice.
Because a Medical Professional Corporation (MPC) lets active business income be taxed at the small business rate (roughly 11–13% combined) rather than personal marginal rates that exceed 50% at the top bracket. Physicians can draw a modest personal income and leave the rest inside the corporation to defer tax and invest with pre-personal-tax dollars — a meaningful compounding advantage most salaried professions can't access.
Alberta is generally strongest — no provincial health premium and comparatively favourable provincial tax on high incomes. Quebec is typically weakest for the same gross billings due to higher provincial rates. Ontario sits in the middle but includes the Ontario Health Premium (up to ~C$900/year), a separate line item within the provincial tax return.
Canadian physician gross billings for specialties like general surgery and radiology are broadly comparable to, though somewhat below, US equivalents once overhead is deducted — a Canadian general surgeon's taxable ~C$332,000 sits well below a comparable US general surgeon's ~$402,000 gross. Both sit meaningfully above UK NHS consultant pay. Canada's advantage is a simpler, single-payer billing system without the private insurance administrative overhead US physicians face.