Canadian Income Tax Brackets 2026: Federal and Provincial Rates
By Wealthvieu
·
Updated
Canadian income tax combines federal and provincial rates, totalling 20-54% depending on income and province. Here’s the complete breakdown.
Federal Tax Brackets 2026
| Taxable Income |
Federal Rate |
| $0 - $55,867 |
15% |
| $55,868 - $111,733 |
20.5% |
| $111,734 - $173,205 |
26% |
| $173,206 - $246,752 |
29% |
| Over $246,752 |
33% |
Provincial Tax Rates (Top Brackets)
| Province |
Top Rate |
Kicks In At |
| Alberta |
15% |
$355,845 |
| British Columbia |
20.5% |
$252,752 |
| Manitoba |
17.4% |
$100,000 |
| New Brunswick |
19.5% |
$189,604 |
| Newfoundland & Labrador |
21.8% |
$1,103,478 |
| Nova Scotia |
21% |
$150,000 |
| Ontario |
13.16% |
$220,000 |
| Prince Edward Island |
18.37% |
$140,000 |
| Quebec |
25.75% |
$126,000 |
| Saskatchewan |
14.5% |
$148,734 |
Combined Top Marginal Rates
| Province |
Top Combined Rate |
| Quebec |
53.31% |
| Nova Scotia |
54.00% |
| Newfoundland & Labrador |
54.80% |
| Ontario |
53.53% |
| Manitoba |
50.40% |
| British Columbia |
53.50% |
| New Brunswick |
52.50% |
| Prince Edward Island |
51.37% |
| Saskatchewan |
47.50% |
| Alberta |
48.00% |
Tax Calculation Example
$75,000 Income in Ontario
| Bracket |
Federal Tax |
Provincial Tax |
| First $55,867 |
$8,380 |
$2,790 |
| $55,868-$75,000 |
$3,922 |
$1,916 |
| Total Tax |
$12,302 |
$4,706 |
| Combined |
$17,008 |
|
Effective rate: 22.7%
$100,000 Income in Ontario
| Category |
Amount |
| Federal tax |
$16,100 |
| Provincial tax |
$6,500 |
| Total tax |
$22,600 |
| Take-home |
$77,400 |
Effective rate: 22.6%
Basic Personal Amount
Federal
| Year |
Basic Personal Amount |
| 2026 |
$15,705 |
This is a tax credit, not deduction — saves $2,356 federal tax.
Provincial Basic Personal Amounts
| Province |
Amount |
| Alberta |
$21,003 |
| British Columbia |
$12,580 |
| Ontario |
$12,399 |
| Quebec |
$18,056 |
Tax Credits
Non-Refundable Credits (Reduce Tax Owed)
| Credit |
Amount |
Tax Savings |
| Basic personal |
$15,705 |
$2,356 |
| Spouse/common-law |
$15,705 |
$2,356 |
| Canada Employment |
$1,433 |
$215 |
| Digital news subscription |
$500 |
$75 |
Refundable Credits (Get Paid Even If No Tax)
| Credit |
Who Qualifies |
Max Amount |
| GST/HST Credit |
Low-medium income |
$519/person |
| Canada Child Benefit |
Parents |
Up to $7,787/child |
| Canada Workers Benefit |
Working low income |
$1,518 |
| Climate Action Incentive |
Most residents |
Varies |
Tax Deductions
Common Deductions
| Deduction |
Limits |
| RRSP contributions |
18% of income, max $31,560 |
| Childcare expenses |
Up to $8,000/child under 7 |
| Moving expenses (for work) |
Actual costs |
| Union dues |
Full amount |
| Professional fees |
Full amount |
| Interest on student loans |
Full amount |
Tax by Province Comparison
On $100,000 income:
| Province |
Total Tax |
Take-Home |
| Alberta |
$22,260 |
$77,740 |
| Ontario |
$22,600 |
$77,400 |
| British Columbia |
$22,580 |
$77,420 |
| Manitoba |
$26,000 |
$74,000 |
| Quebec |
$27,500 |
$72,500 |
| Saskatchewan |
$23,000 |
$77,000 |
Alberta and Ontario are among the lowest taxed.
Investment Income Taxation
| Income Type |
Federal Rate |
Integration |
| Eligible dividends |
Gross-up + credit |
~40% effective |
| Other dividends |
Gross-up + credit |
~47% effective |
| Capital gains |
50% inclusion |
~27% effective |
| Interest |
Fully taxed |
Full marginal rate |
Capital gains only 50% included in income.
Alternative Minimum Tax (AMT)
| Feature |
Details |
| Rate |
15% federal |
| Exemption |
$40,000 |
| Affects |
High deductions, capital gains |
| Recovery |
Credit for 7 years |
AMT prevents high earners from paying too little tax.
Key Tax Dates
| Date |
Deadline |
| February 28 |
RRSP contribution deadline |
| April 30 |
Tax filing deadline |
| April 30 |
Tax payment due |
| June 15 |
Self-employed filing (payments still April 30) |
Tax Reduction Strategies
Lower Your Taxable Income
| Strategy |
Tax Savings |
| Max RRSP |
Marginal rate × contribution |
| Spousal RRSP |
Income splitting in retirement |
| TFSA |
Tax-free growth forever |
| RESP |
Tax deferral + grants |
| Pension income splitting |
At 65+ |
Optimize Credits
| Strategy |
Action |
| Claim all eligible credits |
Review CRA list |
| Medical expenses |
Claim above 3% threshold |
| Charitable donations |
29% credit over $200 |
| First-time homebuyer |
$750 credit |
Tax Software Options
| Software |
Price |
| Wealthsimple Tax |
Free |
| TurboTax |
$0-$120 |
| H&R Block |
$0-$90 |
| StudioTax |
Free |
| SimpleTax |
Free |
Common Mistakes
| Mistake |
Fix |
| Missing RRSP deadline |
Contribute by Feb 28 |
| Not claiming all credits |
Review eligible list |
| Missing receipts |
Keep records all year |
| Wrong province |
Report where you lived Dec 31 |
| Forgetting slips |
Wait for all T-slips |
Bottom Line
| Income |
Approx Total Tax (Ontario) |
Effective Rate |
| $50,000 |
$8,500 |
17.0% |
| $75,000 |
$17,000 |
22.7% |
| $100,000 |
$22,600 |
22.6% |
| $150,000 |
$39,000 |
26.0% |
| $200,000 |
$56,500 |
28.3% |
Key strategies:
- Max RRSP contributions to reduce taxable income
- Use TFSA for tax-free investment growth
- Claim all eligible credits and deductions
- File on time to avoid penalties
- Consider income splitting options