Updated Checked by the Tax-Services.ca editorial team How we check
Canada income taxes come in two layers: a federal tax and a provincial or territorial one, both charged in steps. For 2026 the federal rate starts at 14% on the first $58,523 of taxable income. On $90,000 in Ontario, the engine on this site puts the total at $18,462.25 (20.5% of income), even though your top step is higher than that.
How are federal income taxes worked out for 2026?
Each slice of your income is taxed at its own rate. Only the part above a line gets the higher rate, so moving into a new step never makes your whole paycheque shrink. Then credits come off the result, and the basic personal amount is the big one: $16,452 at the lowest incomes, phasing down to $14,829 for high earners. The CRA’s 2026 rates and brackets page carries the same five federal steps.
| Federal taxable income, 2026 | Rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
Here’s the arithmetic for $90,000, so you can see there’s no magic in it. The first $58,523 at 14% is $8,193.22. The remaining $31,477 at 20.5% is $6,452.79. That’s $14,646.01 before credits. The basic personal amount of $16,452 at 14% takes off $2,303.28, which leaves $12,342.73, the same federal figure you’ll see in the table further down.
What does your province add?
Every province and territory sets its own steps, and Quebec runs its own return. Ontario’s start at 5.05% up to $53,891, then 9.15%, 11.16%, 12.16% and 13.16% above $220,000. Ontario also charges a health premium, from $0 to $900 depending on income, and a surtax on higher Ontario tax amounts. That’s why a person earning $150,000 sees a bigger jump than the rate table suggests.
We didn’t put every province here. The income tax calculator lets you pick yours.
How much tax will you pay in Ontario?
These figures use the basic personal amounts only, no other credits or deductions, so your real bill will usually be lower.
| Taxable income | Federal | Ontario | Total | Share of income |
|---|---|---|---|---|
| $30,000 | $1,896.72 | $1,159.06 | $3,055.78 | 10.2% |
| $60,000 | $6,192.73 | $3,224.52 | $9,417.25 | 15.7% |
| $90,000 | $12,342.73 | $6,119.52 | $18,462.25 | 20.5% |
| $150,000 | $26,455.25 | $15,170.39 | $41,625.64 | 27.8% |
Look at the last row. A person at $150,000 pays 27.8% on average but about 45% on the next dollar earned, because of the Ontario surtax. The marginal tax rate calculator shows that step for any income.
What else comes off your pay besides income tax?
Payroll deductions. For 2026, CPP contributions for an employee top out at $4,230.45 on the first level of earnings, with an extra $416 possible for higher earners. EI tops out at $1,123.07. Neither is income tax, but both shrink your paycheque, and the take-home pay calculator puts them together with tax.
Investment income is taxed too, and so are capital gains. We’ve used a 50% inclusion rate for 2026 in our calculator, though that figure is derived rather than printed on a CRA page we could find. Try the capital gains tax calculator if you sold something.
How do you find your own rate?
Start with your taxable income, which is your total income less deductions such as RRSP contributions. Find the step it falls in, then run it through the income tax calculator with your province selected. If you’re weighing an RRSP deposit, the step you’re in matters more than your average rate, because each deducted dollar saves tax at your top rate, and that’s the number the marginal tool gives you.
What do people get wrong?
The old myth: a raise can push you into a bracket and cut your take-home pay. It can’t.
Only the extra dollars are taxed at the higher rate, so more earnings always leave you with more, even if less of each extra dollar. Say Sam has $58,000 of taxable income and gets a $2,000 raise. The first $523 of it stays in the 14% step, which is $73.22. The other $1,477 lands in the 20.5% step, which is $302.79. That’s about $376 of federal tax on $2,000, before provincial tax and payroll deductions. Sam is still well ahead, just not by the full two grand.
The bigger surprises are different ones. Tax withheld from your pay isn’t your final bill, since that’s settled when you file, and a refund only means you overpaid during the year. And the table above skips most credits, so treat it as a starting point.
Dates matter too. For the 2025 return, filing and payment were due April 30, 2026. The 2026 dates aren’t published yet. When tax time comes round again, mark the day on the calendar now and it’s one less thing to scramble over.
Our sources
The federal brackets, personal amounts, CPP and EI figures are the 2026 values published by the Canada Revenue Agency. The Ontario steps are from the Ontario government’s 2026 rates. Worked figures come from this site’s calculators. We aren’t a government service and we don’t speak for one.
Frequently asked questions
What is the lowest federal tax rate in 2026?
14% on taxable income up to $58,523. The next step is 20.5% up to $117,045.
How much income tax will I pay on $60,000 in Ontario?
About $9,417.25 in total, using only the basic personal amounts: $6,192.73 federal and $3,224.52 Ontario, including the health premium.
Does a raise put me in a higher bracket and cut my pay?
No. Only the income above each line is taxed at the higher rate, so more earnings always leave you with more.
Are CPP and EI part of income tax?
No, they're separate payroll deductions. For 2026 the employee CPP maximum on the first level is $4,230.45 and the EI maximum is $1,123.07.
When were the 2025 tax return deadlines?
April 30, 2026 for most people to file and pay. The 2026 dates haven't been published on the CRA pages we checked.
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill