Canadian Income Tax Calculator
Calculate your 2026 federal and provincial income tax, see bracket breakdowns, and find your marginal and effective tax rates.
Your Income Details
2026 Key Facts
- Federal top rate: 33% on income over $220,000
- Federal basic personal amount: $16,129
- Provincial basic personal: $11,865
- Provincial rates: 5.05% - 13.16%
Federal Tax by Bracket
Ontario Tax by Bracket
Your Tax Summary
Tax Breakdown
Marginal Rate Breakdown
This is the tax rate on the next dollar you earn.
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How Canadian Income Tax Works
Marginal Tax Brackets
Canada uses a progressive (marginal) tax system. Your income is not taxed at a single flat rate. Instead, it is divided into brackets, and each bracket is taxed at a progressively higher rate. For example, if you earn $100,000, the first $57,375 is taxed at 15%, the next portion up to $114,750 is taxed at 20.5%, and so on. Only the income within each bracket is subject to that bracket's rate.
Federal vs. Provincial Tax
Every Canadian pays two layers of income tax: federal and provincial (or territorial). The federal government sets one set of brackets that applies to everyone in Canada. Each province and territory then adds its own separate brackets on top. Your total income tax is the sum of both. The federal and provincial basic personal amounts reduce your tax payable through non-refundable credits.
Marginal vs. Effective Tax Rate
Your marginal tax rate is the rate applied to your last (highest) dollar of income. It tells you how much tax you would pay on any additional dollar earned. Your effective tax rate is the average rate across your entire income, calculated as total tax divided by total income. The effective rate is always lower than the marginal rate because your lower brackets are taxed at lower rates.
Basic Personal Amount
Both the federal and provincial governments provide a basic personal amount, which is the amount of income you can earn before paying any tax. For 2026, the federal basic personal amount is $16,129. Provincial amounts vary from $8,481 (Nova Scotia) to $21,885 (Alberta). The credit is calculated at the lowest tax rate for each level of government.
2026 Provincial Tax Rates: Quick Reference
| Province / Territory | Lowest Rate | Highest Rate | Basic Personal | Brackets |
|---|---|---|---|---|
| Ontario | 5.05% | 13.16% | $11,865 | 5 |
| British Columbia | 5.06% | 20.50% | $12,580 | 7 |
| Alberta | 10.00% | 15.00% | $21,885 | 5 |
| Quebec | 14.00% | 25.75% | $18,056 | 4 |
| Manitoba | 10.80% | 17.40% | $15,780 | 3 |
| Saskatchewan | 10.50% | 14.50% | $17,661 | 3 |
| Nova Scotia | 8.79% | 21.00% | $8,481 | 5 |
| New Brunswick | 9.40% | 19.50% | $13,044 | 4 |
| Newfoundland and Labrador | 8.70% | 21.30% | $10,818 | 7 |
| Prince Edward Island | 9.65% | 18.75% | $12,500 | 5 |
| Northwest Territories | 5.90% | 14.05% | $16,593 | 4 |
| Yukon | 6.40% | 15.00% | $16,129 | 5 |
| Nunavut | 4.00% | 11.50% | $17,925 | 4 |
Provincial tax is calculated separately from federal tax. Your total income tax is the sum of both federal and provincial amounts, minus applicable credits.
2026 Federal Tax Brackets
| Income Range | Federal Rate | Tax on Bracket |
|---|---|---|
| $0 - $57,375 | 15% | $8,606 |
| $57,375 - $114,750 | 20.5% | $11,762 |
| $114,750 - $158,468 | 26% | $11,367 |
| $158,468 - $220,000 | 29% | $17,844 |
| Over $220,000 | 33% | Varies |
The basic personal amount of $16,129 is applied as a non-refundable credit at 15%, reducing federal tax by up to $2,419.
Frequently Asked Questions
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