Canada Income Tax Brackets 2026: Federal and Provincial

Canada uses progressive tax brackets: each rate applies only to the slice of income inside its band.

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 lowest rate is 14% for 2026, down from 15% before July 2025. Brackets were indexed by 2.0%.

Basic personal amount

Everyone can earn $16,452 before paying federal tax (the credit is 14% of that amount). For net income between $181,440 and $258,482 it shrinks gradually to $14,829.

Provincial tax

Each province and territory has its own brackets, charged on top of federal tax. A few 2026 highlights:

• Ontario: 5.05% to 13.16%, plus a surtax and the Ontario Health Premium.
• Alberta: 8% on the first $61,200, rising to 15%.
• British Columbia: lowest rate raised to 5.60% for 2026; top rate 20.5%.
• Quebec: 14% to 25.75%; Quebec residents also get a 16.5% reduction of federal tax.
• Prince Edward Island: a new 20% bracket over $200,000.

See every province in the income tax calculator.

Marginal vs average tax rate

• Marginal rate: the combined federal and provincial rate on your next dollar of income.
• Average rate: total income tax divided by total income — always lower than the marginal rate.

Moving into a higher bracket never reduces your take-home pay, because only the income above the threshold is taxed at the higher rate.

Reducing your taxable income

Deductions such as RRSP contributions come off the top of your income, saving tax at your marginal rate. The 2026 RRSP dollar limit is $33,810. See how much an RRSP saves with the RRSP tax savings calculator.