Canadian Income Tax Brackets
See how Canadian federal and provincial tax brackets work and why your entire income is not taxed at one rate.
The short version
- 2026 federal rates: 14% up to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482, and 33% above.
- Your province adds its own brackets on top; the province is the one you lived in on December 31.
- Only the dollars inside each bracket pay that rate, so a raise never lowers your take-home pay.
- Brackets rose 2.0% for inflation in 2026.
Here are the 2026 income tax brackets for Canada and every province and territory except Quebec, plus what the combined bite looks like at common incomes. These are the rates for income you earn from January 1 to December 31, 2026, reported on the return you file in spring 2027.
One thing first, because it trips up almost everybody. Moving into a higher bracket does NOT mean all your income gets taxed at the higher rate. Only the dollars inside each bracket pay that bracket's rate. A raise never leaves you with less money. If someone tells you otherwise, they owe you a coffee.
Federal Brackets for 2026
| Taxable income | Rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
The federal basic personal amount is $16,452, shrinking gradually to $14,829 for incomes between $181,440 and $258,482. It works as a credit at 14%, which means roughly the first $16,452 of income is tax-free federally. The Canada employment amount ($1,501) gives employees a little more.
The lowest federal rate is 14% for 2026. It was 15% until July 1, 2025, so 2025 returns used a blended 14.5%.
Provincial and Territorial Brackets for 2026
Your province is the one you lived in on December 31, 2026. Each one runs its own brackets and its own basic personal amount on top of the federal tax.
Alberta
| Taxable income | Rate |
|---|---|
| Up to $61,200 | 8% |
| $61,200 to $154,259 | 10% |
| $154,259 to $185,111 | 12% |
| $185,111 to $246,813 | 13% |
| $246,813 to $370,220 | 14% |
| Over $370,220 | 15% |
Basic personal amount $22,769.
British Columbia
| Taxable income | Rate |
|---|---|
| Up to $50,363 | 5.6% |
| $50,363 to $100,728 | 7.7% |
| $100,728 to $115,648 | 10.5% |
| $115,648 to $140,430 | 12.29% |
| $140,430 to $190,405 | 14.7% |
| $190,405 to $265,545 | 16.8% |
| Over $265,545 | 20.5% |
Basic personal amount $13,216. BC gives a low-income tax reduction of up to $690, which shrinks away for incomes above $25,570.
Manitoba
| Taxable income | Rate |
|---|---|
| Up to $47,000 | 10.8% |
| $47,000 to $100,000 | 12.75% |
| Over $100,000 | 17.4% |
Basic personal amount $15,780, phased out between $200,000 and $400,000 of income. Manitoba froze its brackets for 2026 instead of indexing them to inflation.
New Brunswick
| Taxable income | Rate |
|---|---|
| Up to $52,333 | 9.4% |
| $52,333 to $104,666 | 14% |
| $104,666 to $193,861 | 16% |
| Over $193,861 | 19.5% |
Basic personal amount $13,664.
Newfoundland and Labrador
| Taxable income | Rate |
|---|---|
| Up to $44,678 | 8.7% |
| $44,678 to $89,354 | 14.5% |
| $89,354 to $159,528 | 15.8% |
| $159,528 to $223,340 | 17.8% |
| $223,340 to $285,319 | 19.8% |
| $285,319 to $570,638 | 20.8% |
| $570,638 to $1,141,275 | 21.3% |
| Over $1,141,275 | 21.8% |
Basic personal amount $13,094.
Nova Scotia
| Taxable income | Rate |
|---|---|
| Up to $30,995 | 8.79% |
| $30,995 to $61,991 | 14.95% |
| $61,991 to $97,417 | 16.67% |
| $97,417 to $157,124 | 17.5% |
| Over $157,124 | 21% |
Basic personal amount $11,932.
Northwest Territories
| Taxable income | Rate |
|---|---|
| Up to $53,003 | 5.9% |
| $53,003 to $106,009 | 8.6% |
| $106,009 to $172,346 | 12.2% |
| Over $172,346 | 14.05% |
Basic personal amount $18,198.
Nunavut
| Taxable income | Rate |
|---|---|
| Up to $55,801 | 4% |
| $55,801 to $111,602 | 7% |
| $111,602 to $181,439 | 9% |
| Over $181,439 | 11.5% |
Basic personal amount $19,659.
Ontario
| Taxable income | Rate |
|---|---|
| Up to $53,891 | 5.05% |
| $53,891 to $107,785 | 9.15% |
| $107,785 to $150,000 | 11.16% |
| $150,000 to $220,000 | 12.16% |
| Over $220,000 | 13.16% |
Basic personal amount $12,989. Ontario also adds a surtax: 20% of Ontario tax over $5,818 plus another 36% of Ontario tax over $7,446. Add the Ontario Health Premium (up to $900) and a tax reduction for lower incomes.
Prince Edward Island
| Taxable income | Rate |
|---|---|
| Up to $33,928 | 9.5% |
| $33,928 to $65,820 | 13.47% |
| $65,820 to $106,890 | 16.6% |
| $106,890 to $142,520 | 17.62% |
| $142,520 to $200,000 | 19% |
| Over $200,000 | 20% |
Basic personal amount $15,000. The 20% bracket over $200,000 is new for 2026.
Saskatchewan
| Taxable income | Rate |
|---|---|
| Up to $54,532 | 10.5% |
| $54,532 to $155,805 | 12.5% |
| Over $155,805 | 14.5% |
Basic personal amount $20,381.
Yukon
| Taxable income | Rate |
|---|---|
| Up to $58,523 | 6.4% |
| $58,523 to $117,045 | 9% |
| $117,045 to $181,440 | 10.9% |
| $181,440 to $500,000 | 12.8% |
| Over $500,000 | 15% |
Uses the federal basic personal amount ($16,452, reduced at high incomes).
What You Actually Pay: Combined Rates at Common Incomes
This is federal plus provincial income tax for 2026, for someone with ordinary income and only the basic credits. The average rate is the share of your whole income that goes to income tax. The marginal rate is what the NEXT dollar costs you, and that is the number that matters for decisions like an RRSP contribution or extra shifts. CPP and EI are not included.
| Province | $40,000 | $60,000 | $80,000 | $100,000 | $150,000 | $200,000 | $300,000 |
|---|---|---|---|---|---|---|---|
| Alberta average / next dollar | 11.7% 22.0% | 15.3% 28.5% | 19.1% 30.5% | 21.4% 30.5% | 25.6% 36.0% | 29.0% 42.3% | 34.1% 47.0% |
| British Columbia average / next dollar | 11.6% 23.2% | 15.0% 28.2% | 18.3% 28.2% | 20.3% 28.2% | 25.6% 40.7% | 29.8% 46.1% | 36.2% 53.5% |
| Manitoba average / next dollar | 14.8% 24.8% | 18.7% 33.2% | 22.3% 33.2% | 24.5% 37.9% | 30.2% 43.4% | 33.8% 47.5% | 38.9% 51.2% |
| New Brunswick average / next dollar | 14.4% 23.4% | 18.2% 34.5% | 22.2% 34.5% | 24.7% 34.5% | 29.8% 42.0% | 33.2% 48.8% | 38.9% 52.5% |
| Newfoundland and Labrador average / next dollar | 14.1% 22.7% | 18.6% 35.0% | 22.7% 35.0% | 25.3% 36.3% | 30.2% 41.8% | 33.8% 47.1% | 39.3% 53.8% |
| Nova Scotia average / next dollar | 15.8% 28.9% | 20.3% 35.5% | 24.5% 37.2% | 27.1% 38.0% | 31.9% 43.5% | 35.9% 50.3% | 41.2% 54.0% |
| Northwest Territories average / next dollar | 11.5% 19.9% | 14.8% 29.1% | 18.3% 29.1% | 20.5% 29.1% | 25.6% 38.2% | 29.3% 43.3% | 34.5% 47.0% |
| Nunavut average / next dollar | 10.3% 18.0% | 13.2% 27.5% | 16.8% 27.5% | 18.9% 27.5% | 23.5% 35.0% | 26.9% 40.8% | 32.1% 44.5% |
| Ontario average / next dollar | 12.8% 19.1% | 15.7% 29.6% | 19.4% 29.6% | 21.5% 31.5% | 27.8% 45.0% | 32.4% 48.3%* | 38.6% 53.5% |
| Prince Edward Island average / next dollar | 14.8% 27.5% | 19.2% 34.0% | 23.4% 37.1% | 26.2% 37.1% | 31.4% 45.0% | 35.1% 49.3% | 40.3% 53.0% |
| Saskatchewan average / next dollar | 13.4% 24.5% | 17.4% 33.0% | 21.3% 33.0% | 23.7% 33.0% | 28.0% 38.5% | 31.4% 43.8% | 36.0% 47.5% |
| Yukon average / next dollar | 12.0% 20.4% | 15.0% 29.5% | 18.6% 29.5% | 20.8% 29.5% | 25.3% 36.9% | 28.7% 42.2% | 33.7% 45.8% |
* Ontario at $200,000: the next $600 actually costs 73.3%, because the Ontario Health Premium rises by $150 between $200,000 and $200,600 of taxable income. Above $200,600 the rate on the next dollar is 48.3%, as shown. See Ontario taxes.
Three Rules of Thumb
- Use the marginal rate for decisions. An RRSP contribution saves tax at your marginal rate. A $5,000 contribution at a 31% marginal rate saves about $1,550.
- Use the average rate for budgeting. It tells you roughly how much of a year's income goes to income tax overall.
- Half of a capital gain is taxable, so a capital gain is taxed at half your marginal rate. Dividends from Canadian companies get their own credits and are taxed lower again.
Run Your Own Numbers
The table assumes plain income and basic credits. Your real tax depends on CPP and EI, RRSP contributions, and credits like tuition, medical or donations. The income tax calculator uses these exact 2026 rules and shows every line of the math. Or ask the AI about your situation.
What the bracket means for your next raise is explained in marginal tax rate explained, and the whole calculation for your own income is in how much income tax will I pay. Comparing provinces? Use the province comparison calculator or see provincial taxes in Canada.
What are the 2026 federal tax brackets in Canada?
14% on taxable income up to $58,523; 20.5% from $58,523 to $117,045; 26% from $117,045 to $181,440; 29% from $181,440 to $258,482; and 33% above $258,482.
Is all my income taxed at my highest bracket?
No. Each rate applies only to the income inside its bracket. Your average rate is always lower than your top rate.
Which provincial brackets apply to me?
Those of the province or territory where you lived on December 31 of the tax year.
How much did the brackets go up for 2026?
The federal brackets were indexed by 2.0%. Most provinces index theirs too; Manitoba did not for 2026.
Want your own numbers, not a table?
Tell the assistant your income and province. It runs the 2026 calculator and shows your tax, your average rate and your rate on the next dollar.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.
Rates from CRA's T4127 payroll formulas (January and July 2026 editions) and provincial budgets; see our sources. Quebec residents file a separate provincial return with Revenu Québec. Estimates only; CanadianTaxes.ai is not the CRA.