# Canada income tax brackets 2026

> The 2026 federal tax brackets are 14% up to $58,523, 20.5% up to $117,045, 26% up to $181,440, 29% up to $258,482 and 33% above that. Each province and territory adds its own brackets on top.

## Key facts
- The lowest federal rate fell from 15% to 14% on July 1, 2025; 14% applies for all of 2026.
- Federal brackets were indexed by 2.0% for 2026.
- Federal basic personal amount: $16,452, gradually reduced to $14,829 between $181,440 and $258,482 of net income.
- Canada employment amount: $1,501.

## Federal tax brackets 2026

| Taxable income from | To | Rate |
| --- | --- | --- |
| $0 | $58,523 | 14% |
| $58,523 | $117,045 | 20.5% |
| $117,045 | $181,440 | 26% |
| $181,440 | $258,482 | 29% |
| $258,482 | and over | 33% |

## Provincial and territorial brackets 2026

## Alberta (basic personal amount $22,769)

| Taxable income from | To | Rate |
| --- | --- | --- |
| $0 | $61,200 | 8% |
| $61,200 | $154,259 | 10% |
| $154,259 | $185,111 | 12% |
| $185,111 | $246,813 | 13% |
| $246,813 | $370,220 | 14% |
| $370,220 | and over | 15% |

## British Columbia (basic personal amount $13,216)

| Taxable income from | To | Rate |
| --- | --- | --- |
| $0 | $50,363 | 5.6% |
| $50,363 | $100,728 | 7.7% |
| $100,728 | $115,648 | 10.5% |
| $115,648 | $140,430 | 12.29% |
| $140,430 | $190,405 | 14.7% |
| $190,405 | $265,545 | 16.8% |
| $265,545 | and over | 20.5% |

## Manitoba (basic personal amount $15,780)

| Taxable income from | To | Rate |
| --- | --- | --- |
| $0 | $47,000 | 10.8% |
| $47,000 | $100,000 | 12.75% |
| $100,000 | and over | 17.4% |

## New Brunswick (basic personal amount $13,664)

| Taxable income from | To | Rate |
| --- | --- | --- |
| $0 | $52,333 | 9.4% |
| $52,333 | $104,666 | 14% |
| $104,666 | $193,861 | 16% |
| $193,861 | and over | 19.5% |

## Newfoundland and Labrador (basic personal amount $13,094)

| Taxable income from | To | Rate |
| --- | --- | --- |
| $0 | $44,678 | 8.7% |
| $44,678 | $89,354 | 14.5% |
| $89,354 | $159,528 | 15.8% |
| $159,528 | $223,340 | 17.8% |
| $223,340 | $285,319 | 19.8% |
| $285,319 | $570,638 | 20.8% |
| $570,638 | $1,141,275 | 21.3% |
| $1,141,275 | and over | 21.8% |

## Northwest Territories (basic personal amount $18,198)

| Taxable income from | To | Rate |
| --- | --- | --- |
| $0 | $53,003 | 5.9% |
| $53,003 | $106,009 | 8.6% |
| $106,009 | $172,346 | 12.2% |
| $172,346 | and over | 14.05% |

## Nova Scotia (basic personal amount $11,932)

| Taxable income from | To | Rate |
| --- | --- | --- |
| $0 | $30,995 | 8.79% |
| $30,995 | $61,991 | 14.95% |
| $61,991 | $97,417 | 16.67% |
| $97,417 | $157,124 | 17.5% |
| $157,124 | and over | 21% |

## Nunavut (basic personal amount $19,659)

| Taxable income from | To | Rate |
| --- | --- | --- |
| $0 | $55,801 | 4% |
| $55,801 | $111,602 | 7% |
| $111,602 | $181,439 | 9% |
| $181,439 | and over | 11.5% |

## Ontario (basic personal amount $12,989)

| Taxable income from | To | Rate |
| --- | --- | --- |
| $0 | $53,891 | 5.05% |
| $53,891 | $107,785 | 9.15% |
| $107,785 | $150,000 | 11.16% |
| $150,000 | $220,000 | 12.16% |
| $220,000 | and over | 13.16% |

## Prince Edward Island (basic personal amount $15,000)

| Taxable income from | To | Rate |
| --- | --- | --- |
| $0 | $33,928 | 9.5% |
| $33,928 | $65,820 | 13.47% |
| $65,820 | $106,890 | 16.6% |
| $106,890 | $142,520 | 17.62% |
| $142,520 | $200,000 | 19% |
| $200,000 | and over | 20% |

## Saskatchewan (basic personal amount $20,381)

| Taxable income from | To | Rate |
| --- | --- | --- |
| $0 | $54,532 | 10.5% |
| $54,532 | $155,805 | 12.5% |
| $155,805 | and over | 14.5% |

## Yukon (basic personal amount $16,452)

| Taxable income from | To | Rate |
| --- | --- | --- |
| $0 | $58,523 | 6.4% |
| $58,523 | $117,045 | 9% |
| $117,045 | $181,440 | 10.9% |
| $181,440 | $500,000 | 12.8% |
| $500,000 | and over | 15% |

## Example: how the brackets apply

With $80,000 of taxable income, the first $58,523 is taxed federally at 14% and the remaining $21,477 at 20.5%. Your marginal rate is the rate of the highest bracket you reach, but your average rate is always lower because each rate only applies to its own slice. Non-refundable credits (basic personal amount, CPP, EI, Canada employment amount) are then subtracted at the lowest rate.

Combined federal and provincial marginal rate on the next dollar at $80,000: Alberta 30.5%, British Columbia 28.2%, Manitoba 33.25%, New Brunswick 34.5%, Newfoundland and Labrador 35%, Northwest Territories 29.1%, Nova Scotia 37.17%, Nunavut 27.5%, Ontario 29.65%, Prince Edward Island 37.1%, Saskatchewan 33%, Yukon 29.5% (before surtaxes and premiums).

- [Take-home pay calculator](https://www.takehomeclear.com)
- [Compare provinces](https://www.takehomeclear.com/provinces)
- [Worked example](https://www.takehomeclear.com/how-take-home-pay-is-calculated)

## Frequently asked questions
### What are the federal tax brackets for 2026?
14% up to $58,523, 20.5% up to $117,045, 26% up to $181,440, 29% up to $258,482 and 33% above $258,482.

### If I move into a higher bracket, do I take home less?
No. Only the income inside the higher bracket is taxed at the higher rate, so a raise always increases your take-home pay.

### What is the difference between marginal and average tax rate?
The marginal rate is what you pay on your next dollar of income. The average rate is your total income tax divided by your income, and it is always lower.

## Official sources
- [Current year tax rates and income brackets, 2026 (Canada Revenue Agency)](https://www.canada.ca/en/revenue-agency/services/tax/individuals/tax-rates-brackets/current-year.html)
- [T4127 Payroll Deductions Formulas, 123rd edition, July 1, 2026 (CRA)](https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4127-payroll-deductions-formulas/t4127-jul/t4127-jul-payroll-deductions-formulas.html)
- [T4032 Payroll Deductions Tables 2026 (CRA)](https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4032-payroll-deductions-tables.html)
- [CPP contribution rates, maximums and exemptions (CRA)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/cpp-contribution-rates-maximums-exemptions.html)
- [Second additional CPP (CPP2) contribution rates and maximums (CRA)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/calculating-deductions/making-deductions/second-additional-cpp-contribution-rates-maximums.html)
- [EI premium rates and maximums (CRA)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/employment-insurance-ei/ei-premium-rates-maximums.html)
- [Ontario Health Premium (Government of Ontario)](https://www.ontario.ca/page/health-premium)

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TakeHomeClear · Updated on 2026-10-22 · https://www.takehomeclear.com/tax-brackets