Canada federal income tax brackets — 2026 calculator
Canadian federal tax has five brackets from 15% to 33%. Provincial tax stacks on top and varies dramatically — from 4% to 21% additional depending on province.
Tax year: 2026 · Filing status: Standard
Calculate income tax for Canada (Federal)
Type your gross annual income. The calculator runs it through the progressive brackets and returns tax owed plus effective rate.
Bracket schedule for 2026
| Bracket | Range | Rate |
|---|---|---|
| Bracket 1 | $0 — $57,375 | 15% |
| Bracket 2 | $57,375 — $114,750 | 20.5% |
| Bracket 3 | $114,750 — $177,882 | 26% |
| Bracket 4 | $177,882 — $253,414 | 29% |
| Bracket 5 | $253,414 — and above | 33% |
The Canadian federal brackets in 2026
Canada uses five progressive federal brackets, indexed annually:
- 15%: $0–$57,375
- 20.5%: $57,375–$114,750
- 26%: $114,750–$177,882
- 29%: $177,882–$253,414
- 33%: above $253,414
On top of federal, every province levies its own income tax with its own brackets. The combined federal-plus-provincial marginal rate ranges from about 24% at the low end (Alberta lowest bracket) to over 54% (Newfoundland, top bracket). This calculator handles federal only.
The Basic Personal Amount (BPA) — the freebie
The Basic Personal Amount is a non-refundable tax credit (not a deduction) that effectively eliminates federal tax on the first portion of income. For 2026, the BPA is approximately $16,129. Multiplied by the lowest bracket rate (15%), this is worth about $2,419 in tax credits — applied dollar-for-dollar against tax owed. Provinces have their own equivalent BPAs.
This calculator simulates the BPA as a tax deduction approximation, which produces almost the same result as the credit calculation for most income levels.
Provincial tax: where the real variation hides
Combined federal + provincial top marginal rates as of 2026 (approximate):
- Alberta: 48.0%
- British Columbia: 53.5%
- Ontario: 53.5%
- Quebec: 53.3% (Quebec collects its own income tax separately)
- Newfoundland & Labrador: 54.8% (highest top combined rate in Canada)
- Manitoba: 50.4%
The federal-provincial combination means two Canadians earning the same income can pay materially different tax depending on which province they reside in on December 31 of the tax year.
What's NOT in this calculator
- Provincial income tax: See your province's Ministry of Finance for current rates.
- Canada Pension Plan (CPP): 5.95% of pensionable earnings up to the YMPE (~$71,300 in 2026), then a "second tier" CPP2 above. Employer matches.
- Employment Insurance (EI): 1.66% of insurable earnings up to the maximum.
- GST/HST/PST: Provincial sales tax. Varies by province from 5% (Alberta, no PST) to 15% (Atlantic provinces with HST).
Frequently asked questions
What are the 2026 Canadian federal tax brackets?
Five brackets: 15% on the first $57,375, 20.5% to $114,750, 26% to $177,882, 29% to $253,414, and 33% above. Thresholds index annually for inflation.
What is the Basic Personal Amount for 2026?
Approximately $16,129 — a non-refundable tax credit that effectively eliminates federal tax on the first ~$16,000 of income. Provinces have their own equivalent BPAs.
Does this include provincial income tax?
No — federal only. Provincial tax stacks on top and varies dramatically (4% to 21% additional). For a complete picture, add your province's tax separately. Quebec is the most distinct: it collects its own provincial income tax through a separate Quebec return rather than via the federal CRA system.
What is Canada's top combined marginal rate?
About 54.8% in Newfoundland & Labrador, 53.5% in Ontario and BC, 53.3% in Quebec, 48.0% in Alberta (lowest of the major provinces). These rates combine federal 33% + provincial top bracket.
How is investment income taxed in Canada?
Interest income is taxed at the full marginal rate. Eligible Canadian dividends get a gross-up and dividend tax credit that produces an effective rate roughly 6 percentage points lower than ordinary income. Capital gains are 50% taxable (the inclusion rate), meaning only half the gain is added to taxable income — a major Canadian tax advantage that persists in 2026 after debate over raising the inclusion rate to 66.7%.