Canadian tax brackets 2026: federal and provincial rates for every province and territory

In Canada you pay two income taxes on the same income: federal tax, and tax to the province or territory you live in. Each has its own brackets. This guide sets out every 2026 bracket, explains how the two layers combine into the rate you actually pay on your next dollar, and covers the extras that change the picture in Ontario and Quebec.

The 2026 tax year is the calendar year. Bracket thresholds below are the ones the Canada Revenue Agency (CRA) and Revenu Québec built into their 2026 payroll formulas. Tax amounts are calculated live by the Canada income tax calculator.

The short version

Federal tax runs from 14% to 33%. Provincial and territorial rates sit on top, from as low as 4% in Nunavut to a top rate of 25.75% in Quebec. Combined, a salary of $75,000 in Ontario pays 28.5% in income tax on the next dollar, while all its deductions together come to 24.1% of the salary.

Federal tax brackets for 2026

The bottom rate of 14% applies for the whole of 2026, the first full year at that rate after a cut part-way through 2025. The thresholds are indexed to inflation each year.Canada Revenue Agency↗

Before any tax is due, the federal basic personal amount of $16,452 gives a credit at the lowest rate. Higher earners get less: the amount falls to $14,829 as net income rises from $181,440 to $258,482. Employees also get the Canada employment amount of $1,501, and credits for their base CPP contributions and EI premiums.

Provinces and territories at a glance

Manitoba’s basic personal amount phases out between $200,000 and $400,000 of net income, and Yukon’s follows the federal amount, so the figures shown for those two are the maximums.

Provincial and territorial brackets

Each province and territory except Quebec has its tax collected by the CRA on the same return as federal tax, and they all follow the same pattern: rates on slices of taxable income, plus a basic personal amount credited at the lowest rate.Canada Revenue Agency↗

Which province’s brackets apply? On your tax return, it is the province or territory where you lived on the last day of the year, even if you moved during the year. During the year, your employer deducts tax for the province where you work, so if you live in one province and work in another, or move, the difference is settled when you file.

Alberta

The 8% bottom rate on the first $61,200 is Alberta’s newest bracket.Government of Alberta↗

British Columbia

British Columbia raised its lowest rate for 2026 part-way through the year, effective from January. These are the full-year rates; employers apply an adjusted rate to paycheques from July so the year comes out right.Government of British Columbia↗Canada Revenue Agency↗ BC also has a tax reduction of up to $690 for people with lower incomes.

Manitoba

Manitoba has frozen its bracket thresholds and basic personal amount, so they are not indexed to inflation.

New Brunswick

Newfoundland and Labrador

Newfoundland and Labrador raised its basic personal amount for 2026 in the spring, back-dated to January.Canada Revenue Agency↗

Northwest Territories

Nova Scotia

For 2026, every Nova Scotia taxpayer gets the full basic personal amount; the earlier income test has been removed.

Nunavut

Ontario

Ontario also has a surtax and the Ontario Health Premium, covered below.

Prince Edward Island

The top bracket of 20% on income over $200,000 is new for 2026.

Quebec

Quebec sets and collects its own income tax; the next sections explain how this interacts with federal tax.Revenu Québec↗

Saskatchewan

Yukon

How the brackets work together

Your federal and provincial taxes are worked out separately, each on its own brackets and credits, and then added together. The combined rate on any slice of income is the federal rate for that slice plus the provincial rate for that slice. Because federal and provincial thresholds rarely line up, the combined rate steps up more often than either schedule alone.

Here is the working for a $120,000 salary in Ontario. Taxable income is a little below the salary, because the enhanced part of CPP is deducted:

Marginal and average rates

Your marginal rate is the tax on your next dollar. Your average rate is your total tax as a share of your whole income. The marginal rate matters for decisions at the edge, such as overtime, a raise or an RRSP deduction. The average rate matters for budgeting.

The table shows the combined federal and provincial income tax on the next dollar of salary, as the calculator works it out:

At $75,000 these rates are a little below the two bracket rates added together. Just above the CPP ceiling, part of each extra dollar goes to CPP2, which is deducted from income, so slightly less of that dollar is taxed. At $150,000 the figures outside Quebec are the plain sum of the two bracket rates, plus Ontario’s surtax; in Quebec the federal part is reduced by the abatement described below.

Average rates are much lower. In Ontario, all deductions, including CPP and EI, take 24.1% of a $75,000 salary and 30.5% of a $150,000 one. The salary after tax guide shows take-home pay at each step.

Ontario’s surtax and Health Premium

Ontario’s bracket rates are not the whole story. Two extras push up the marginal rate on some incomes:

• The Ontario surtax is 20% of basic Ontario tax above $5,818, plus a further 36% of basic Ontario tax above $7,446. Because it is a tax on tax, it turns Ontario’s top rate of 13.16% into a much higher effective provincial rate.
• The Ontario Health Premium is nothing on taxable income up to $20,000, then rises in steps to a maximum of $900 a year just above $200,000. Each step phases in quickly, so on a small band of income the premium adds a lot to your marginal rate.Government of Ontario↗

At the other end, the Ontario tax reduction cuts or removes basic Ontario tax for people with lower incomes. As it phases out, it raises the marginal rate on that income, and the first step of the Health Premium starts in the same range. That is why an Ontario salary of $25,000 pays 28.2% on the next dollar, well above the two bottom bracket rates added together.

Quebec and the federal abatement

Quebec residents file a separate Quebec return. Quebec sets the brackets shown above and Revenu Québec collects the tax, with a basic personal amount of $18,952 credited at 14%.Revenu Québec↗ Because Quebec runs some programs itself that federal tax pays for elsewhere, basic federal tax for Quebec residents is reduced by the Quebec abatement of 16.5%. On $75,000, federal tax is $6,856 in Quebec against $8,259 in Ontario.

Common misunderstandings

“A raise can put me in a higher bracket and leave me worse off.” It can’t. Only the dollars above a threshold pay the higher rate.

“My bracket rate is what I pay on all my income.” Your bracket tells you the rate on your top slice only. The basic personal amount and other credits, and the lower rates on the slices below, keep your average rate well under it.

“Federal and provincial thresholds are the same.” They differ in every province and territory except Yukon, whose first three thresholds match the federal ones.

“CPP and EI are part of the tax brackets.” They are separate contributions with their own rates and ceilings. Our guide to CPP and EI in 2026 covers them.

Brackets and your paycheque

You don’t pay tax bracket by bracket during the year. Your employer uses the CRA’s payroll formulas, which apply the federal and provincial brackets and your TD1 credits to your pay as if it continued all year.Canada Revenue Agency↗ Your return then applies the brackets to your actual taxable income, including credits and provincial low-income reductions the payroll formulas leave out, so what was withheld and the tax you finally owe can differ.

To see what a deduction is worth at your marginal rate, use the RRSP tax savings calculator or read the RRSP tax savings guide. For a full walk-through of a paycheque, see the Canada take-home pay guide.

Figures are estimates for 2026 from the CRA’s T4127 payroll formulas and Revenu Québec’s TP-1015.F-V. They are not tax advice.