Every individual who is legally authorized to work in Canada, including temporary foreign workers, is required to pay both federal and provincial income taxes. Temporary foreign workers in Alberta are generally subject to the same payroll taxes as other workers. However, take-home pay can vary depending on tax residency status, income level, and individual circumstances. See Alberta take‑home pay hub for related topics.
Do temporary foreign workers pay income tax in Alberta?
Foreign nationals who work in Canada pay both federal and provincial income tax, just like any other worker in Alberta. The amount of tax deducted from each paycheque depends on gross income and applicable deductions.
As a result, take-home pay for temporary foreign workers can vary based on income level, payroll deductions, and individual circumstances. Learn more about how taxes affect take-home pay in Alberta.
CPP and EI deductions
Temporary foreign workers generally have Canada Pension Plan (CPP) and Employment Insurance (EI) contributions deducted from their gross pay, just like other workers in Alberta. These mandatory deductions reduce take-home pay on each paycheque.
In some cases, temporary foreign workers may be eligible for EI benefits, such as after a layoff, if they meet the required eligibility conditions. Eligibility depends on factors like work history and employment status.
Tax residency and its impact
Tax residency determines how Canada taxes your income, and it applies to both Canadians and temporary foreign workers. According to the Canada Revenue Agency, your tax obligations depend on whether you are considered a resident, non-resident, or part-year resident for tax purposes.
Tax residency is not based on citizenship. Instead, it is determined by your residential ties, such as where you live, how long you stay in Canada, and your intention to remain in the country. Your residency status can affect how income is taxed and how much take-home pay you receive.
Why take-home pay may differ for temporary workers
Take-home pay for temporary foreign workers may differ because work hours can be limited by job contracts or work permit conditions. Fewer hours worked can result in lower overall earnings and different tax deductions per pay period.
In addition, temporary workers may experience variations in pay due to shorter employment periods, different benefit eligibility, or payroll timing. These factors can all affect how much income is received after deductions.
Use the Take-home pay calculator to estimate your net income based on your current salary and typical deductions.