For the full federal-provincial tax framework and planning model, see the Canada Income Tax hub.
Canada uses a progressive tax system with both federal and provincial brackets. Your total tax rate depends on where you live and how much you earn. Here’s a complete breakdown for 2026.
Quick answer: On a $100,000 salary in Ontario, income tax is ~$20,024 (20.0% effective) and take-home after CPP and EI is ~$74,206. Combined top rates range from 44.5% (Nunavut) to 54.8% (Newfoundland and Labrador). Federal basic personal amount: $16,452.
Federal Tax Brackets (2026)
| Taxable Income | Federal Rate |
|---|---|
| Up to $58,523 | 14.0% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26.0% |
| $181,440 to $258,482 | 29.0% |
| Over $258,482 | 33.0% |
The lowest rate fell from 15% to 14% on July 1, 2025, so 2026 is the first full year at 14%. Basic personal amount (federal): $16,452 for 2026. Non-refundable credits are worth 14% of the amount, so the first $16,452 of income is effectively tax-free federally. Above $181,440 of net income the amount is reduced gradually, to $14,829 at $258,482.
Provincial Tax Rates (2026) — Top Marginal Rates
| Province | Lowest Rate | Highest Rate | Top Rate Starts At | Combined Top Rate (Fed + Prov) |
|---|---|---|---|---|
| Alberta | 8% | 15% | $370,220 | 48.0% |
| British Columbia | 5.6% | 20.5% | $265,545 | 53.5% |
| Manitoba | 10.8% | 17.4% | $100,000 | 50.4%† |
| New Brunswick | 9.4% | 19.5% | $193,861 | 52.5% |
| Newfoundland & Labrador | 8.7% | 21.8% | $1,141,275 | 54.8% |
| Northwest Territories | 5.9% | 14.05% | $172,346 | 47.05% |
| Nova Scotia | 8.79% | 21.0% | $157,124 | 54.0% |
| Nunavut | 4.0% | 11.5% | $181,439 | 44.5% |
| Ontario | 5.05% | 13.16% | $220,000 | 53.53%‡ |
| Prince Edward Island | 9.5% | 20.0% | $200,000 | 53.0% |
| Quebec | 14.0% | 25.75% | $132,245 | 53.31%§ |
| Saskatchewan | 10.5% | 14.5% | $155,805 | 47.5% |
| Yukon | 6.4% | 15.0% | $500,000 | 48.0% |
†Manitoba’s brackets are frozen at $47,000 and $100,000, and its $15,780 basic personal amount is phased out between $200,000 and $400,000 of net income, which adds about 0.85 points to the marginal rate in that range. ‡Ontario’s 13.16% top rate plus its 56% surtax. §Quebec: 33% federal less the 16.5% Quebec abatement, plus 25.75%.
Quebec has the highest provincial rates but also receives a 16.5% federal tax abatement.
Take-Home Pay by Province ($75,000 Salary)
| Province | Federal Tax | Provincial Tax | CPP + CPP2 | EI | Take-Home | Effective Rate |
|---|---|---|---|---|---|---|
| Alberta | $8,259 | $4,010 | $4,246 | $1,123 | $57,362 | 23.5% |
| British Columbia | $8,259 | $3,661 | $4,246 | $1,123 | $57,711 | 23.1% |
| Ontario | $8,259 | $4,446 | $4,246 | $1,123 | $56,926 | 24.1% |
| Quebec | $6,856* | $8,466 | $4,495* | $1,218* | $53,965 | 28.0% |
| Manitoba | $8,259 | $6,348 | $4,246 | $1,123 | $55,024 | 26.6% |
| Saskatchewan | $8,259 | $5,566 | $4,246 | $1,123 | $55,806 | 25.6% |
| Nova Scotia | $8,259 | $7,949 | $4,246 | $1,123 | $53,423 | 28.8% |
| New Brunswick | $8,259 | $6,270 | $4,246 | $1,123 | $55,102 | 26.5% |
| Newfoundland | $8,259 | $6,635 | $4,246 | $1,123 | $54,737 | 27.0% |
| PEI | $8,259 | $7,056 | $4,246 | $1,123 | $54,316 | 27.6% |
*Quebec: federal tax after the 16.5% Quebec abatement; QPP in place of CPP; EI column is Quebec’s reduced EI ($896) plus QPIP ($322).
Take-Home Pay by Province ($100,000 Salary)
| Province | Federal Tax | Provincial Tax | CPP + CPP2 | EI | Take-Home | Effective Rate |
|---|---|---|---|---|---|---|
| Alberta | $13,302 | $6,470 | $4,646 | $1,123 | $74,459 | 25.5% |
| British Columbia | $13,302 | $5,556 | $4,646 | $1,123 | $75,373 | 24.6% |
| Ontario | $13,302 | $6,723 | $4,646 | $1,123 | $74,206 | 25.8% |
| Quebec | $11,054* | $13,140 | $4,895* | $1,326* | $69,585 | 30.4% |
| Manitoba | $13,302 | $9,484 | $4,646 | $1,123 | $71,445 | 28.6% |
| Saskatchewan | $13,302 | $8,641 | $4,646 | $1,123 | $72,288 | 27.7% |
| Nova Scotia | $13,302 | $12,062 | $4,646 | $1,123 | $68,867 | 31.1% |
| New Brunswick | $13,302 | $9,714 | $4,646 | $1,123 | $71,215 | 28.8% |
| Newfoundland | $13,302 | $10,326 | $4,646 | $1,123 | $70,603 | 29.4% |
| PEI | $13,302 | $11,140 | $4,646 | $1,123 | $69,789 | 30.2% |
*Quebec: federal tax after the 16.5% Quebec abatement; QPP in place of CPP; EI column is Quebec’s reduced EI ($896) plus QPIP ($430).
All take-home figures on this page are 2026 estimates for a single person whose only income is the salary shown, claiming only the basic personal amount, the Canada employment amount and the CPP/EI credits (the enhanced CPP and CPP2 contributions are deducted from income). They are annual tax as assessed on the return, not payroll withholding. Ontario includes the surtax, Ontario tax reduction, LIFT credit and Health Premium; the BC tax reduction and New Brunswick low-income reduction are applied where they reach. Quebec: federal tax is after the 16.5% abatement, the CPP column is QPP (6.30%) and the EI column is Quebec’s reduced EI (1.30%) plus QPIP (0.430%). No RRSP, union dues or other deductions or credits, and no refundable credits or benefits (Canada workers benefit, GST/HST credit). Effective rate here = income tax + CPP + EI as a share of gross pay.
Marginal vs Effective Tax Rate
A common misconception: Many Canadians think earning more means paying more tax on all their income. In reality, only income in the higher bracket is taxed at the higher rate.
Example: $100,000 Income in Ontario (2026)
Taxable income is $98,873: the $100,000 salary less the enhanced CPP ($711) and CPP2 ($416) contributions, which are deductible.
| Taxable Income Range | Federal Rate | Ontario Rate | Combined Rate | Tax on This Portion |
|---|---|---|---|---|
| $0–$53,891 | 14% | 5.05% | 19.05% | $10,266 |
| $53,891–$58,523 | 14% | 9.15% | 23.15% | $1,072 |
| $58,523–$98,873 | 20.5% | 9.15% | 29.65% | $11,964 |
| Tax before credits | $23,302 | |||
| Federal credits: 14% × (basic personal amount $16,452 + CPP base $3,519 + EI $1,123 + Canada employment amount $1,501) | -$3,163 | |||
| Ontario credits: 5.05% × (basic personal amount $12,989 + CPP base $3,519 + EI $1,123) | -$890 | |||
| Ontario surtax (20% of Ontario tax over $5,818) | +$26 | |||
| Ontario Health Premium | +$750 | |||
| Income tax (federal + Ontario) | $20,024 | |||
| Effective rate (of $100,000 gross) | 20.0% | |||
| Marginal rate | 20.5% | 10.98% (9.15% + 20% surtax) | 31.48% |
Your effective income tax rate (20.0%) is well below your marginal rate (31.48%). (Rows are rounded to the dollar, so they can differ from the total by $1.)
Income Tax by Income Level (Ontario)
| Gross Income | Federal Tax | Provincial Tax | CPP + CPP2 + EI | Take-Home | Effective Rate |
|---|---|---|---|---|---|
| $30,000 | $1,397 | $300 | $2,066 | $26,237 | 12.5% |
| $40,000 | $2,691 | $1,153 | $2,824 | $33,332 | 16.7% |
| $50,000 | $3,985 | $2,265 | $3,582 | $40,168 | 19.7% |
| $60,000 | $5,338 | $2,982 | $4,340 | $47,340 | 21.1% |
| $75,000 | $8,259 | $4,446 | $5,369 | $56,926 | 24.1% |
| $100,000 | $13,302 | $6,723 | $5,769 | $74,206 | 25.8% |
| $125,000 | $18,802 | $10,256 | $5,769 | $90,173 | 27.9% |
| $150,000 | $25,302 | $14,608 | $5,769 | $104,321 | 30.5% |
| $200,000 | $38,877 | $24,076 | $5,769 | $131,278 | 34.4% |
| $300,000 | $69,668 | $44,426 | $5,769 | $180,137 | 40.0% |
Same assumptions as above. Effective rate = income tax + CPP + EI as a share of gross pay. At $30,000 the Ontario LIFT credit and tax reduction cancel the Ontario income tax, leaving only the $300 Ontario Health Premium.
Tax Credits and Deductions
Key Credits That Reduce Your Tax
| Credit/Deduction | Value | Who Qualifies |
|---|---|---|
| Basic Personal Amount | $16,452 (federal, 2026) | Everyone |
| RRSP deduction | Up to $33,810 (2026) | All earners with contribution room |
| FHSA deduction | Up to $8,000/year | First-time buyers |
| Childcare expenses | Up to $8,000-$11,000/child | Working parents |
| Moving expenses | Actual costs | Moving 40+ km closer to a new job or school |
| Medical expenses | Amount above the lesser of 3% of net income or a fixed dollar threshold | All filers |
| Charitable donations | Federal: 14% on the first $200, 29% above (33% on gifts from income taxed at 33%) | All filers |
| Canada Workers Benefit | Up to $1,633 (single, 2025 tax year, CRA’s latest published) | Low-income workers |
Tax Saving Examples (Ontario, 2026)
| Strategy | Income | Tax Reduction |
|---|---|---|
| Max RRSP ($33,810) | $100,000 | ~$10,200 |
| Childcare claim ($16,000 for 2 kids, single parent) | $80,000 | ~$4,890 |
| FHSA max ($8,000) | $75,000 | ~$2,520 |
| $2,000 charitable donation | $100,000 | ~$790 |
Federal plus Ontario income tax saved, including the Ontario surtax and Health Premium effects; same simplifications as the tables above.
CPP and EI Contributions (2026)
| Contribution | Rate | Maximum Annual Amount | Max Pensionable/Insurable Earnings |
|---|---|---|---|
| CPP (employee) | 5.95% (on earnings above $3,500) | $4,230.45 | $74,600 |
| CPP2 (higher earnings) | 4.00% | $416.00 | $85,000 |
| EI (employee) | 1.63% | $1,123.07 | $68,900 |
| QPP (Quebec employee) | 6.30% (on earnings above $3,500) | $4,479.30 | $74,600 |
| EI (Quebec employee) | 1.30% | $895.70 | $68,900 |
| QPIP (Quebec) | 0.430% | $442.90 | $103,000 |
Provincial Comparison: Best and Worst for Taxes
At $75,000 Income
| Rank | Province | Total Tax + Contributions | Take-Home |
|---|---|---|---|
| 1 (lowest) | British Columbia | $17,289 | $57,711 |
| 2 | Alberta | $17,638 | $57,362 |
| 3 | Ontario | $18,074 | $56,926 |
| 4 | Saskatchewan | $19,194 | $55,806 |
| 5 | New Brunswick | $19,898 | $55,102 |
| 6 | Manitoba | $19,976 | $55,024 |
| 7 | Newfoundland | $20,263 | $54,737 |
| 8 | PEI | $20,684 | $54,316 |
| 9 | Quebec | $21,035 | $53,965 |
| 10 (highest) | Nova Scotia | $21,577 | $53,423 |
| — | Average of the ten provinces | $19,563 | $55,437 |
Provincial Sales Tax Comparison
Sales tax also affects your real purchasing power (Nova Scotia’s HST fell from 15% to 14% on April 1, 2025):
| Province | GST | PST/HST | Total Sales Tax |
|---|---|---|---|
| Alberta | 5% | 0% | 5% |
| British Columbia | 5% | 7% PST | 12% |
| Manitoba | 5% | 7% RST | 12% |
| New Brunswick | — | 15% HST | 15% |
| Newfoundland | — | 15% HST | 15% |
| Nova Scotia | — | 14% HST | 14% |
| Ontario | — | 13% HST | 13% |
| PEI | — | 15% HST | 15% |
| Quebec | 5% | 9.975% QST | 14.975% |
| Saskatchewan | 5% | 6% PST | 11% |
Alberta’s 5% GST-only rate gives residents significant additional purchasing power, especially on large purchases.
Key Takeaways
- Canada’s top combined tax rate ranges from 44.5% (Nunavut) to 54.8% (Newfoundland and Labrador, above $1,141,275)
- Your effective tax rate is always lower than your marginal rate — don’t fear the next bracket
- British Columbia leaves the most take-home of the ten provinces at $75,000 and $100,000; from about $150,000 up, Alberta does
- Quebec has the highest provincial rates but also provides more social services (subsidized childcare, pharmacare)
- RRSP contributions are the most powerful deduction — a $33,810 RRSP contribution saves ~$10,200 in tax at $100K income in Ontario
- Alberta’s 5% GST-only provides additional savings on purchases compared to 13-15% in HST provinces
- CPP + CPP2 + EI contributions add up to $5,769.52/year on top of income taxes for workers earning $85,000 or more (the 2026 maximum outside Quebec: CPP $4,230.45 + CPP2 $416 + EI $1,123.07)
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Paired guide hub: Canada Income Tax Hub
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