Tax Season 2026
2026 Canadian Tax Brackets: Federal and Provincial Rates Explained
All 5 federal tax brackets for 2026 (with the 14% lowest rate now in effect for the full year) and the 2026 brackets for every province and territory. See how your income is taxed.
Published , updated
The 2026 Canadian federal tax brackets are: 14% on income up to $58,523, 20.5% on $58,523 to $117,045, 26% on $117,045 to $181,440, 29% on $181,440 to $258,482, and 33% on income over $258,482. The federal basic personal amount is $16,452, so you pay no federal tax on the first $16,452 of income. Provincial tax is added on top at rates that vary by province.
2026 is the first full year at the 14% lowest rate. The rate was cut from 15% to 14% on July 1, 2025, so 2025 returns used a blended 14.5%. The bracket thresholds also rose 2% for inflation. Below are the 2026 federal and provincial brackets, how progressive tax works, and what it means for your take-home pay. These are the rates you’ll use on the 2026 return you file in spring 2027.
2026 Federal Tax Brackets
Canada has five federal income tax brackets. They apply to your taxable income, which is what’s left after deductions such as RRSP contributions, union dues and other eligible expenses are subtracted from your total income.
| Taxable Income Range | 2026 Federal 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 for 2026 is $16,452, so the first $16,452 of your income is effectively tax-free at the federal level. It’s applied as a non-refundable tax credit worth $16,452 × 14% = $2,303. If your net income is above $181,440, the amount shrinks gradually, down to $14,829 at $258,482 and above.
What Changed From 2025
In 2025 the lowest federal bracket was taxed at a blended 14.5%: 15% for January to June and 14% for July to December, after Bill C-4 cut the rate partway through the year. For 2026, 14% applies to the whole year.
Non-refundable credits such as the basic personal amount are also calculated at 14%, which takes back part of the saving. For an employee, the full-year 14% rate means about $285 less federal tax at $50,000 than the old 15% rate would have charged, and about $360 less for anyone earning more than $58,523. That’s roughly double the 2025 saving.
If your non-refundable credit claims are unusually large (for example, big medical or tuition amounts), a temporary top-up tax credit keeps a 15% rate on the part of those claims above $58,523, so the rate cut can’t leave you worse off. See the tax changes for 2026 for details.
How Progressive Tax Actually Works
One of the most common misconceptions about Canadian taxes is the belief that moving into a higher bracket means all of your income gets taxed at the higher rate. This is not how it works.
Canada uses a progressive (or marginal) tax system. Each bracket rate only applies to the income that falls within that specific range. Here is a concrete example.
Suppose you have $90,000 of taxable income in 2026. Your federal tax would be calculated as follows:
- First $16,452: no tax (covered by the basic personal amount credit)
- $16,452 to $58,523: taxed at 14% = $5,890
- $58,523 to $90,000: taxed at 20.5% = $6,453
Your total federal tax would be approximately $12,343 before other credits (such as CPP, EI and the Canada employment amount), an effective (average) federal rate of about 13.7%. That’s well below the 20.5% marginal rate you technically fall into.
The takeaway: earning more money and landing in a higher bracket will never cause you to take home less overall. Only the dollars above each threshold are taxed at the higher rate.
2026 Provincial and Territorial Tax Brackets
On top of federal tax, every province and territory levies its own income tax with its own brackets and basic personal amount. Your income tax is the two combined. Here’s a summary, followed by each jurisdiction’s full 2026 brackets.
| Province / Territory | Lowest Rate | Top Rate | Basic Personal Amount | Top Combined Rate |
|---|---|---|---|---|
| Alberta | 8% | 15% | $22,769 | 48.00% |
| British Columbia | 5.60% | 20.50% | $13,216 | 53.50% |
| Manitoba | 10.80% | 17.40% | $15,780 | 50.40% |
| New Brunswick | 9.4% | 19.5% | $13,664 | 52.50% |
| Newfoundland and Labrador | 8.7% | 21.8% | $13,094 | 54.80% |
| Northwest Territories | 5.90% | 14.05% | $18,198 | 47.05% |
| Nova Scotia | 8.79% | 21.00% | $11,932 | 54.00% |
| Nunavut | 4% | 11.5% | $19,659 | 44.50% |
| Ontario | 5.05% | 13.16% | $12,989 | 53.53% |
| Prince Edward Island | 9.50% | 20.00% | $15,000 | 53.00% |
| Quebec | 14.00% | 25.75% | $18,952 | 53.31% |
| Saskatchewan | 10.5% | 14.5% | $20,381 | 47.50% |
| Yukon | 6.4% | 15% | $16,452 | 48.00% |
The top combined rate is federal plus provincial tax on ordinary income (such as salary or interest) in the highest bracket, including Ontario’s surtax and Quebec’s federal abatement.
Alberta
| Taxable Income | 2026 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% |
Alberta’s 8% bracket, added in 2025, now covers the first $61,200, and it has the highest provincial basic personal amount at $22,769. Combined federal and Alberta top rate: 48%. Alberta income tax guide
British Columbia
| Taxable Income | 2026 Rate |
|---|---|
| Up to $50,363 | 5.60% |
| $50,363 to $100,728 | 7.70% |
| $100,728 to $115,648 | 10.50% |
| $115,648 to $140,430 | 12.29% |
| $140,430 to $190,405 | 14.70% |
| $190,405 to $265,545 | 16.80% |
| Over $265,545 | 20.50% |
BC raised its lowest rate from 5.06% to 5.60% for 2026 and increased the BC tax reduction for low-income earners to $690. Combined federal and BC top rate: 53.50%. BC income tax guide
Manitoba
| Taxable Income | 2026 Rate |
|---|---|
| Up to $47,000 | 10.80% |
| $47,000 to $100,000 | 12.75% |
| Over $100,000 | 17.40% |
Manitoba has frozen its brackets and its $15,780 basic personal amount since 2025, and phases the basic personal amount out between $200,000 and $400,000 of net income. Combined federal and Manitoba top rate: 50.40%.
New Brunswick
| Taxable Income | 2026 Rate |
|---|---|
| Up to $52,333 | 9.4% |
| $52,333 to $104,666 | 14% |
| $104,666 to $193,861 | 16% |
| Over $193,861 | 19.5% |
Combined federal and New Brunswick top rate: 52.50%.
Newfoundland and Labrador
| Taxable Income | 2026 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% |
Newfoundland and Labrador raised its basic personal amount to $15,000 from July 1, 2026, which works out to $13,094 for the 2026 year. Combined federal and NL top rate: 54.80%, the highest in Canada.
Northwest Territories
| Taxable Income | 2026 Rate |
|---|---|
| Up to $53,003 | 5.90% |
| $53,003 to $106,009 | 8.60% |
| $106,009 to $172,346 | 12.20% |
| Over $172,346 | 14.05% |
Combined federal and NWT top rate: 47.05%.
Nova Scotia
| Taxable Income | 2026 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 | 17.50% |
| Over $157,124 | 21.00% |
Combined federal and Nova Scotia top rate: 54%.
Nunavut
| Taxable Income | 2026 Rate |
|---|---|
| Up to $55,801 | 4% |
| $55,801 to $111,602 | 7% |
| $111,602 to $181,439 | 9% |
| Over $181,439 | 11.5% |
Nunavut has the lowest rates in the country. Combined federal and Nunavut top rate: 44.50%.
Ontario
| Taxable Income | 2026 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% |
Ontario also charges a surtax: 20% of Ontario tax above $5,818, plus another 36% of Ontario tax above $7,446. That pushes the effective top provincial rate to about 20.53%. Most Ontarians also pay the Ontario Health Premium (up to $900). Combined federal and Ontario top rate: 53.53%. Ontario income tax guide
Prince Edward Island
| Taxable Income | 2026 Rate |
|---|---|
| Up to $33,928 | 9.50% |
| $33,928 to $65,820 | 13.47% |
| $65,820 to $106,890 | 16.60% |
| $106,890 to $142,520 | 17.62% |
| $142,520 to $200,000 | 19.00% |
| Over $200,000 | 20.00% |
PEI added the 20% bracket on income over $200,000 starting in 2026 and raised its basic personal amount to $15,000. Combined federal and PEI top rate: 53%.
Quebec
| Taxable Income | 2026 Rate |
|---|---|
| Up to $54,345 | 14.00% |
| $54,345 to $108,680 | 19.00% |
| $108,680 to $132,245 | 24.00% |
| Over $132,245 | 25.75% |
Quebec collects its own income tax through Revenu Québec, on a separate return. Quebec residents get a federal abatement that cuts their basic federal tax by 16.5%, which offsets part of the higher provincial rates. Combined federal and Quebec top rate: about 53.31%. Quebec income tax guide
Saskatchewan
| Taxable Income | 2026 Rate |
|---|---|
| Up to $54,532 | 10.5% |
| $54,532 to $155,805 | 12.5% |
| Over $155,805 | 14.5% |
Saskatchewan’s basic personal amount rose to $20,381 for 2026, the second of four planned $500 increases on top of inflation indexing. Combined federal and Saskatchewan top rate: 47.50%.
Yukon
| Taxable Income | 2026 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% |
Yukon’s lower brackets and basic personal amount match the federal ones. Combined federal and Yukon top rate: 48%.
If you are self-employed, keep in mind that you also pay both the employee and employer portions of CPP/QPP contributions, which adds to your overall tax burden beyond income tax alone.
Tips to Reduce Your Tax Bill
While you cannot change the bracket rates, there are several legitimate ways to lower the income that gets taxed:
- Contribute to your RRSP. Every dollar you contribute to a Registered Retirement Savings Plan reduces your taxable income by the same amount. The 2026 limit is $33,810, and contributions made by March 1, 2027 count for your 2026 return. Use our RRSP calculator to see how much you could save.
- Maximize your TFSA. While TFSA contributions are not tax-deductible, the investment growth inside the account is completely tax-free, which helps you keep more of your returns long-term.
- Claim all eligible deductions. Working from home, moving expenses for a new job, child care costs, and professional dues can all reduce your taxable income. Make sure you are not leaving money on the table.
- Split pension income. If you are 65 or older and receiving eligible pension income, you may be able to split up to 50% of that income with your spouse or common-law partner, which can lower both of your marginal rates.
Frequently Asked Questions
What is the basic personal amount for 2026?
The federal basic personal amount for 2026 is $16,452. This is the amount of income you can earn before any federal income tax applies (it shrinks to $14,829 at high incomes). Each province also has its own basic personal amount, which varies. For example, Alberta’s is $22,769, while Ontario’s is $12,989.
Does earning more money ever result in less take-home pay?
No. Under Canada’s progressive tax system, only the income within each bracket is taxed at that bracket’s rate. Moving into a higher bracket does not retroactively increase the tax on income you already earned below that threshold. You will always take home more money (after tax) by earning more. There is no “cliff” where a raise costs you money.
How is tax different for self-employed individuals?
If you are self-employed, the same federal and provincial tax brackets apply to your net business income (revenue minus eligible business expenses). The key difference is CPP contributions: employees split CPP with their employer, but self-employed individuals pay both halves. For 2026, that means a CPP rate of 11.9% on earnings between $3,500 and $74,600, plus 8% CPP2 on earnings between $74,600 and $85,000. Use the self-employed tax calculator to estimate your total obligation, including both income tax and CPP.
Related Guides
- How Much Tax Do I Pay on $50K, $75K, $100K in Canada?: pre-calculated 2026 breakdowns for 10 common salary levels
- 12 Tax Changes for 2026 That Affect Your Return: the full-year 14% rate, the top-up credit, CPP and EI changes, and more
- Tax Deadline Canada: Key Dates and Penalties: filing deadlines for your 2026 return, late penalties, and what to do if you owe
- 2026 Canadian tax data: every 2026 bracket, credit and contribution rate in one place
Tax rules can change, and individual circumstances vary. This article is for informational purposes and does not constitute tax advice. For personalized guidance, consult a qualified tax professional or visit the CRA website.
This article is general information, not tax advice. Figures can change when governments update rates. Read the disclaimer.