How does income tax work in Canada?

Canada uses a progressive tax system with both federal and provincial brackets. Your income is taxed at increasing rates as it rises through each bracket. You pay federal tax plus provincial tax, and each province sets its own rates and brackets.

What is the capital gains inclusion rate in Canada?

50% of capital gains are included in your taxable income, with no $250,000 threshold, and the included portion is taxed at your marginal tax rate. The two-thirds rate proposed for gains above $250,000 was cancelled on March 21, 2025 and never took effect.

What is HST vs GST vs PST?

GST (Goods and Services Tax) is the 5% federal sales tax. PST (Provincial Sales Tax) is an additional provincial tax in some provinces. HST (Harmonized Sales Tax) combines GST and PST into a single tax in participating provinces (Ontario, Nova Scotia, New Brunswick, Newfoundland, PEI).

Taxes – Income Tax, Capital Gains & Sales Tax (Canada)

Navigate Canada's tax system with provincial calculators, bracket guides, and tools for income tax, capital gains, sales tax, and dividends.

Income Tax

Income Tax Calculator

Calculate your combined federal and provincial income tax for any province.

Dividend Tax Credit Guide

How eligible and non-eligible dividends are taxed and how the tax credit works.

Provincial Tax Brackets

Capital Gains Tax Calculators

Capital Gains Tax Calculator (All Provinces)

Estimate your capital gains tax across all Canadian provinces and territories.

Ontario

Capital gains tax rates for Ontario residents.

British Columbia

Capital gains tax rates for BC residents.

Quebec

Capital gains tax rates for Quebec residents.

Alberta

Capital gains tax rates for Alberta residents.

Manitoba

Capital gains tax rates for Manitoba residents.

Saskatchewan

Capital gains tax rates for Saskatchewan residents.

Nova Scotia

Capital gains tax rates for Nova Scotia residents.

New Brunswick

Capital gains tax rates for New Brunswick residents.

Newfoundland & Labrador

Capital gains tax rates for Newfoundland residents.

Prince Edward Island

Capital gains tax rates for PEI residents.

Northwest Territories

Capital gains tax rates for NWT residents.

Nunavut

Capital gains tax rates for Nunavut residents.

Yukon

Capital gains tax rates for Yukon residents.

Sales Tax Calculators (GST/HST/PST)

Sales Tax Calculator (All Provinces)

Calculate GST, HST, or PST for any province or territory.

Ontario (HST)

Ontario HST calculator — 13% combined rate.

British Columbia (GST + PST)

BC sales tax calculator — 5% GST + 7% PST.

Quebec (GST + QST)

Quebec sales tax calculator — 5% GST + 9.975% QST.

Alberta (GST only)

Alberta sales tax calculator — 5% GST with no provincial sales tax.

Manitoba (GST + RST)

Manitoba sales tax calculator — 5% GST + 7% RST.

Saskatchewan (GST + PST)

Saskatchewan sales tax calculator — 5% GST + 6% PST.

Nova Scotia (HST)

Nova Scotia HST calculator — 15% combined rate.

New Brunswick (HST)

New Brunswick HST calculator — 15% combined rate.

Newfoundland & Labrador (HST)

Newfoundland HST calculator — 15% combined rate.

PEI (HST)

Prince Edward Island HST calculator — 15% combined rate.

Northwest Territories (GST only)

NWT sales tax — 5% GST with no territorial sales tax.

Nunavut (GST only)

Nunavut sales tax — 5% GST with no territorial sales tax.

Yukon (GST only)

Yukon sales tax — 5% GST with no territorial sales tax.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

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