How income tax works in Canada
You pay two income taxes: federal tax, and tax to the province or territory you live in on December 31. Each has its own brackets, and each rate applies only to the part of your income in that bracket. Both also give non-refundable credits, such as the basic personal amount, which reduce your tax by the credit amount times the lowest rate.
Federal tax brackets 2026
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $58,523 | 14% | 14% of income |
| $58,524 to $117,045 | 20.5% | $8,193.22 plus 20.5% of income over $58,523 |
| $117,046 to $181,440 | 26% | $20,190.23 plus 26% of income over $117,045 |
| $181,441 to $258,482 | 29% | $36,932.93 plus 29% of income over $181,440 |
| Over $258,482 | 33% | $59,275.11 plus 33% of income over $258,482 |
The federal basic personal amount is $16,452, reduced gradually to $14,829 for income between $181,440 and $258,482. The Canada employment amount is $1,501. Quebec residents get a 16.5% reduction in federal tax because Quebec runs its own programs.
Provincial and territorial tax brackets 2026
Alberta
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $61,200 | 8% | 8% of income |
| $61,201 to $154,259 | 10% | $4,896 plus 10% of income over $61,200 |
| $154,260 to $185,111 | 12% | $14,201.90 plus 12% of income over $154,259 |
| $185,112 to $246,813 | 13% | $17,904.14 plus 13% of income over $185,111 |
| $246,814 to $370,220 | 14% | $25,925.40 plus 14% of income over $246,813 |
| Over $370,220 | 15% | $43,202.38 plus 15% of income over $370,220 |
Basic personal amount: $22,769.
British Columbia
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $50,363 | 5.6% | 5.6% of income |
| $50,364 to $100,728 | 7.7% | $2,820.33 plus 7.7% of income over $50,363 |
| $100,729 to $115,648 | 10.5% | $6,698.43 plus 10.5% of income over $100,728 |
| $115,649 to $140,430 | 12.29% | $8,265.03 plus 12.29% of income over $115,648 |
| $140,431 to $190,405 | 14.7% | $11,310.74 plus 14.7% of income over $140,430 |
| $190,406 to $265,545 | 16.8% | $18,657.07 plus 16.8% of income over $190,405 |
| Over $265,545 | 20.5% | $31,280.59 plus 20.5% of income over $265,545 |
Basic personal amount: $13,216.
Manitoba
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $47,000 | 10.8% | 10.8% of income |
| $47,001 to $100,000 | 12.75% | $5,076 plus 12.75% of income over $47,000 |
| Over $100,000 | 17.4% | $11,833.50 plus 17.4% of income over $100,000 |
Basic personal amount: $15,780 (reduced at higher incomes).
New Brunswick
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $52,333 | 9.4% | 9.4% of income |
| $52,334 to $104,666 | 14% | $4,919.30 plus 14% of income over $52,333 |
| $104,667 to $193,861 | 16% | $12,245.92 plus 16% of income over $104,666 |
| Over $193,861 | 19.5% | $26,517.12 plus 19.5% of income over $193,861 |
Basic personal amount: $13,664.
Newfoundland and Labrador
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $44,678 | 8.7% | 8.7% of income |
| $44,679 to $89,354 | 14.5% | $3,886.99 plus 14.5% of income over $44,678 |
| $89,355 to $159,528 | 15.8% | $10,365.01 plus 15.8% of income over $89,354 |
| $159,529 to $223,340 | 17.8% | $21,452.50 plus 17.8% of income over $159,528 |
| $223,341 to $285,319 | 19.8% | $32,811.03 plus 19.8% of income over $223,340 |
| $285,320 to $570,638 | 20.8% | $45,082.88 plus 20.8% of income over $285,319 |
| $570,639 to $1,141,275 | 21.3% | $104,429.23 plus 21.3% of income over $570,638 |
| Over $1,141,275 | 21.8% | $225,974.91 plus 21.8% of income over $1,141,275 |
Basic personal amount: $13,094.
Nova Scotia
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $30,995 | 8.79% | 8.79% of income |
| $30,996 to $61,991 | 14.95% | $2,724.46 plus 14.95% of income over $30,995 |
| $61,992 to $97,417 | 16.67% | $7,358.36 plus 16.67% of income over $61,991 |
| $97,418 to $157,124 | 17.5% | $13,263.88 plus 17.5% of income over $97,417 |
| Over $157,124 | 21% | $23,712.60 plus 21% of income over $157,124 |
Basic personal amount: $11,932.
Northwest Territories
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $53,003 | 5.9% | 5.9% of income |
| $53,004 to $106,009 | 8.6% | $3,127.18 plus 8.6% of income over $53,003 |
| $106,010 to $172,346 | 12.2% | $7,685.69 plus 12.2% of income over $106,009 |
| Over $172,346 | 14.05% | $15,778.81 plus 14.05% of income over $172,346 |
Basic personal amount: $18,198.
Nunavut
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $55,801 | 4% | 4% of income |
| $55,802 to $111,602 | 7% | $2,232.04 plus 7% of income over $55,801 |
| $111,603 to $181,439 | 9% | $6,138.11 plus 9% of income over $111,602 |
| Over $181,439 | 11.5% | $12,423.44 plus 11.5% of income over $181,439 |
Basic personal amount: $19,659.
Ontario
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $53,891 | 5.05% | 5.05% of income |
| $53,892 to $107,785 | 9.15% | $2,721.50 plus 9.15% of income over $53,891 |
| $107,786 to $150,000 | 11.16% | $7,652.80 plus 11.16% of income over $107,785 |
| $150,001 to $220,000 | 12.16% | $12,363.99 plus 12.16% of income over $150,000 |
| Over $220,000 | 13.16% | $20,875.99 plus 13.16% of income over $220,000 |
Basic personal amount: $12,989. Ontario also adds a surtax on higher provincial tax and the Ontario Health Premium.
Prince Edward Island
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $33,928 | 9.5% | 9.5% of income |
| $33,929 to $65,820 | 13.47% | $3,223.16 plus 13.47% of income over $33,928 |
| $65,821 to $106,890 | 16.6% | $7,519.01 plus 16.6% of income over $65,820 |
| $106,891 to $142,520 | 17.62% | $14,336.63 plus 17.62% of income over $106,890 |
| $142,521 to $200,000 | 19% | $20,614.64 plus 19% of income over $142,520 |
| Over $200,000 | 20% | $31,535.84 plus 20% of income over $200,000 |
Basic personal amount: $15,000.
Quebec
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $54,345 | 14% | 14% of income |
| $54,346 to $108,680 | 19% | $7,608.30 plus 19% of income over $54,345 |
| $108,681 to $132,245 | 24% | $17,931.95 plus 24% of income over $108,680 |
| Over $132,245 | 25.75% | $23,587.55 plus 25.75% of income over $132,245 |
Basic personal amount: $18,952.
Saskatchewan
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $54,532 | 10.5% | 10.5% of income |
| $54,533 to $155,805 | 12.5% | $5,725.86 plus 12.5% of income over $54,532 |
| Over $155,805 | 14.5% | $18,384.99 plus 14.5% of income over $155,805 |
Basic personal amount: $20,381.
Yukon
| Taxable income | Rate | Tax |
|---|---|---|
| Up to $58,523 | 6.4% | 6.4% of income |
| $58,524 to $117,045 | 9% | $3,745.47 plus 9% of income over $58,523 |
| $117,046 to $181,440 | 10.9% | $9,012.45 plus 10.9% of income over $117,045 |
| $181,441 to $500,000 | 12.8% | $16,031.51 plus 12.8% of income over $181,440 |
| Over $500,000 | 15% | $56,807.19 plus 15% of income over $500,000 |
Basic personal amount: $16,452 (reduced at higher incomes).
CPP and EI in 2026
| Contribution | Employee rate | On earnings | Yearly maximum |
|---|---|---|---|
| CPP | 5.95% | $3,500 to $74,600 | $4,230.45 |
| CPP2 | 4% | $74,600 to $85,000 | $416.00 |
| EI | 1.63% | Up to $68,900 | $1,123.07 |
| QPP (Quebec) | 6.3% | $3,500 to $74,600 | $4,479.30 |
| EI (Quebec) | 1.3% | Up to $68,900 | $895.70 |
| QPIP (Quebec) | 0.43% | Up to $103,000 | $442.90 |
Read more in CPP and EI explained, or see your own numbers in the income tax calculator.