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).
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.