Canadian tax brackets 2026 by province
Canada taxes income in slices. Federal tax for 2026 starts at 14% on the first $58,523 and reaches 33% above $258,482. Your province adds its own brackets on top, so what you actually pay is the two added together. Below are the federal brackets, the combined rate in every province, and what these rates mean for a raise.
Federal tax brackets 2026
| Taxable income | Federal rate | Tax on this slice |
|---|---|---|
| Up to $58,523 | 14.0% | $8,193 |
| $58,524 to $117,045 | 20.5% | $11,997 |
| $117,046 to $181,440 | 26.0% | $16,743 |
| $181,441 to $258,482 | 29.0% | $22,342 |
| Over $258,482 | 33.0% | no ceiling |
The first $16,452 of income is covered by the basic personal amount, so very little federal tax is due below it. That amount shrinks to $14,829 once income passes $181,440. Every province has its own basic personal amount too.
Combined federal and provincial rates, 2026
This is the rate on your next dollar of ordinary income, federal and provincial added together. Ontario's figures include its surtax.
| Province or territory | At $50,000 | At $100,000 | Top rate |
|---|---|---|---|
| Alberta | 22.0% | 30.5% | 48.0% |
| British Columbia | 19.6% | 28.2% | 53.5% |
| Manitoba | 26.8% | 37.9% | 50.4% |
| New Brunswick | 23.4% | 34.5% | 52.5% |
| Newfoundland and Labrador | 28.5% | 36.3% | 54.3% |
| Northwest Territories | 19.9% | 29.1% | 47.0% |
| Nova Scotia | 28.9% | 38.0% | 54.0% |
| Nunavut | 18.0% | 27.5% | 44.5% |
| Ontario | 19.1% | 31.5% | 53.5% |
| Prince Edward Island | 27.5% | 37.1% | 53.0% |
| Quebec | 25.7% | 36.1% | 53.3% |
| Saskatchewan | 24.5% | 33.0% | 47.5% |
| Yukon | 20.4% | 29.5% | 48.0% |
Follow any province for its full brackets, its basic personal amount, its credits and its sources. The spread on the top rate runs from 44.5% in Nunavut to 54.3% in Newfoundland and Labrador. At a middle income the gap is much narrower, and sales tax and housing costs usually matter more than the rate.
Marginal rate and average rate are not the same
The marginal rate is what your next dollar is taxed at. The average rate is your total tax divided by your total income. People often quote the marginal rate as if it applied to everything, which overstates the bill by a wide margin.
Take $100,000 of salary in Ontario in 2026:
| Line | Amount |
|---|---|
| Salary | $100,000 |
| Federal tax | $13,302 |
| Ontario tax | $6,723 |
| Total income tax | $20,024 |
| Average rate, tax divided by salary | 20.0% |
| Marginal rate, the rate on the next dollar | 31.5% |
So a $1,000 raise is worth about $685 after tax, and a $1,000 RRSP contribution saves about $315. That is what the marginal rate is for. Work out your own with the income tax calculator or the take-home pay calculator.
What changed for 2026
The CRA indexes the brackets and most credits to inflation every year, and the 2026 factor is 2.0%. Each threshold rose by that much. Indexation is why your bracket can stay the same even when your pay goes up a little. The full list of figures that moved is on the what changed in 2026 page.
Federal tax brackets in past years
For checking an old return or comparing years. These are the federal brackets only, as the CRA publishes them. Each rate applies to the income between the previous threshold and the one shown.
| Tax year | First bracket | Second | Third | Fourth | Top |
|---|---|---|---|---|---|
| 2025 | 14.5% to $57,375 | 20.5% to $114,750 | 26% to $177,882 | 29% to $253,414 | 33% above $253,414 |
| 2024 | 15% to $55,867 | 20.5% to $111,733 | 26% to $173,205 | 29% to $246,752 | 33% above $246,752 |
| 2023 | 15% to $53,359 | 20.5% to $106,717 | 26% to $165,430 | 29% to $235,675 | 33% above $235,675 |
| 2022 | 15% to $50,197 | 20.5% to $100,392 | 26% to $155,625 | 29% to $221,708 | 33% above $221,708 |
| 2021 | 15% to $49,020 | 20.5% to $98,040 | 26% to $151,978 | 29% to $216,511 | 33% above $216,511 |
| 2020 | 15% to $48,535 | 20.5% to $97,069 | 26% to $150,473 | 29% to $214,368 | 33% above $214,368 |
| 2019 | 15% to $47,630 | 20.5% to $95,259 | 26% to $147,667 | 29% to $210,371 | 33% above $210,371 |
| 2018 | 15% to $46,605 | 20.5% to $93,208 | 26% to $144,489 | 29% to $205,842 | 33% above $205,842 |
| 2017 | 15% to $45,916 | 20.5% to $91,831 | 26% to $142,353 | 29% to $202,800 | 33% above $202,800 |
| 2016 | 15% to $45,282 | 20.5% to $90,563 | 26% to $140,388 | 29% to $200,000 | 33% above $200,000 |
| 2015 | 15% to $44,701 | 22% to $89,401 | 26% to $138,586 | 29% above $138,586 |
The lowest rate fell from 15% to 14% on July 1, 2025, so the rate for the 2025 tax year is 14.5%. In 2015 there were four brackets and the second rate was 22%. The 33% top bracket arrived in 2016, when the second rate was cut to 20.5%. Source: Canada Revenue Agency, tax rates and income brackets for individuals, all years and last year, checked .
These rates cover ordinary income only
Salary, interest, pension income and self-employment profit are taxed at the rates above. Two common kinds of income are not. Capital gains are only partly taxable, and Canadian dividends are grossed up and then reduced by the dividend tax credit, which leaves them taxed more lightly than salary. Use the capital gains calculator or the salary versus dividends calculator for those.
Every province and territory
AlbertaBritish ColumbiaManitobaNew BrunswickNewfoundland and LabradorNorthwest TerritoriesNova ScotiaNunavutOntarioPrince Edward IslandQuebecSaskatchewanYukon
Frequently asked questions
- What are the federal tax brackets for 2026?
- Five of them. 14% on the first $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482, and 33% above that. Your province adds its own brackets on top.
- Do I pay the top rate on all my income?
- No. Each rate applies only to the income inside that bracket. On $100,000 in Ontario the top dollar is taxed at 31.5%, but the tax across the whole salary is $20,024, which is 20.0% of it.
- What is the difference between the marginal and average rate?
- The marginal rate is what the next dollar you earn is taxed at. It decides what a raise, a bonus or an RRSP contribution is worth. The average rate is your total tax divided by your total income, and it is always the lower of the two.
- How much can I earn before paying federal tax in 2026?
- The basic personal amount is $16,452, so roughly that much of income pays no federal tax. It shrinks to $14,829 for income above $181,440. Each province has its own basic personal amount as well, and they differ a lot.
- Why did the brackets move this year?
- The CRA indexes them to inflation each year, and the 2026 factor is 2.0%. Every bracket threshold and most credits rise by that much. It is why you can earn a little more without changing bracket.
- What were the federal tax brackets in past years?
- The table on this page lists them for every year from 2015 to 2025, from the CRA. The rates have barely changed since 2016: 15%, 20.5%, 26%, 29% and 33%. The thresholds rise with inflation each year. The exception is 2025, when the lowest rate fell to 14% on July 1, making it 14.5% for the year.
- Which province has the lowest income tax?
- On the top rate, Nunavut at 44.5% and Newfoundland and Labrador at 54.3% are the two ends. At a middle income the gap is smaller, and sales tax, health premiums and housing costs matter more than the rate alone.
- Are dividends and capital gains taxed at these rates?
- No. These are the rates for ordinary income such as salary, interest, pension and self-employment profit. Capital gains and Canadian dividends are taxed more lightly, through the inclusion rate and the dividend tax credit.
Sources
Every figure on this page comes from one of these primary sources. Data last verified .
- CRA T4127 Payroll Deductions Formulas, 123rd Edition, effective July 1, 2026 (Rev. 26/06)
- CRA – CPP contribution rates, maximums and exemptions
- CRA – Second additional CPP (CPP2) contribution rates and maximums
- ESDC – EI maternity and parental benefits: how much you could receive
- CRA – EI premium rates and maximums
- CRA – Indexation adjustment for personal income tax and benefit amounts
- Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 150(1)(d) and s. 156.1(4): filing deadlines and balance-due day
- Canada Employment Insurance Commission – Canada Employment Insurance Commission confirms 2027 Employment Insurance premium rate (September 14, 2026)
Data verified for tax year 2026: . Provincial figures and their sources are on each province page.