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Government of Canada income tax, the federal part, starts at 14% on the first $58,523 of your taxable income for 2026 and tops out at 33% above $258,482. Your province adds its own tax on top, and one return covers both.
What are the federal income tax rates for 2026?
The rates are marginal. Each rate hits only the slice of income inside its band, so moving into a higher band never cuts your take-home pay the way people fear.
| Taxable income | Federal 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% |
The federal basic personal amount is $16,452 at lower incomes. It shrinks between $181,440 and $258,482, down to $14,829. Multiply by 14% and the full amount is worth $2,303.28 off your federal tax. The CRA keeps the current figures on its tax rates and income brackets page.
How do the brackets work on $100,000 of taxable income?
Say Jordan in Winnipeg has $100,000 of taxable income. The first $58,523 is taxed at 14%, which is $8,193.22. The remaining $41,477 is taxed at 20.5%, which is about $8,502.79. That’s roughly $16,696 before credits. Claim only the basic personal amount, take off its $2,303.28 value, and the federal bill is about $14,393.
Jordan’s $100,000 never gets taxed at 20.5% across the board. Only the slice above $58,523 does, and that’s the whole point of brackets.
How much federal tax do you pay on $60,000?
Take an Ontario employee with $60,000 of employment income and nothing else. Our income tax calculator, which counts the basic personal amount, the Canada employment amount and the CPP and EI credits, gives $5,338.30 of federal tax. Ontario tax is $2,982.20, so total income tax is $8,320.50. Add $4,339.75 of CPP and EI, and $47,339.75 is left.
That $5,338.30 isn’t 20.5% of $60,000. Most of the income sits in the 14% band and the credits knock the bill down further. Working from the top rate on a pay stub is a common way to overestimate what you owe.
| Employment income (Ontario) | Federal tax | Total income tax | Average rate |
|---|---|---|---|
| $30,000 | $1,397.38 | $2,452.11 | 8.2% |
| $60,000 | $5,338.30 | $8,320.50 | 13.9% |
| $90,000 | $11,251.60 | $17,033.55 | 18.9% |
| $150,000 | $25,302.14 | $39,910.59 | 26.6% |
Who collects it, and when is the return due?
The Canada Revenue Agency collects federal income tax. Employers take some off each paycheque and send it in, and when you file, the return settles the difference between what was held back and what you truly owe for the year, which is why some people get money back and others owe a bit. For the 2025 return, most people had to file and pay by 30 April 2026. Self-employed people had until 15 June 2026 to file, but any tax owing was still due on 30 April. The 2026 return dates haven’t been published yet, so check the CRA page before you plan around them.
If your paycheque tax looks off, run the take-home pay calculator for your salary and province. It shows the tax and contributions separately, so you can see what your employer should be taking.
Which tools show the rest of the picture?
Your federal tax is only one part. The income tax calculator adds the provincial tax and the payroll contributions. The marginal tax rate calculator tells you what the next dollar costs, which matters when you’re weighing overtime or a bonus. One warning: near $200,000 in Ontario the marginal rate looks very high, because the Ontario health premium steps up there. The tax credits calculator covers federal credits only.
For a sum you can act on, try the RRSP calculator. A deduction saves tax at your top rate, so it saves the most in the 26% or 29% band and the least in the 14% one.
Mistakes that cost people money
Forgetting the credits is the big one. The basic personal amount comes automatically, but others don’t. And people forget that CPP and EI are separate from income tax. On $90,000 the calculator shows $5,769.52 of CPP and EI on top of $17,033.55 of income tax.
Another slip is treating the average rate as your rate. On $60,000 the average is 13.9%, while the next dollar is taxed at more than that. Check both numbers before you decide anything.
Last, a raise never shrinks your pay by pushing you into a higher band. If Jordan earns $1,000 more, that $1,000 is taxed at 20.5%, which is $205 of federal tax, and the other $795 stays with Jordan before provincial tax and payroll deductions.
The calculator can’t check every claim you might make. It leaves out benefits, refundable credits and most deductions, so use it for a starting figure and not as your assessment.
Where the numbers come from
The brackets and the basic personal amounts are the 2026 figures on the Canada Revenue Agency‘s tax rates page. The examples come from our calculator using those rates, and the $100,000 example is plain arithmetic on the brackets. This site isn’t part of the government or linked to the CRA.
Frequently asked questions
What is the lowest federal income tax rate in 2026?
14% on the first $58,523 of taxable income. The top rate is 33% above $258,482.
Does a higher bracket mean all my income is taxed more?
No. Each rate applies only to the income inside its band.
How much federal tax is due on $60,000 in Ontario?
Our calculator gives $5,338.30 federal and $8,320.50 in total income tax, before you count the $4,339.75 of CPP and EI.
Who do I pay federal income tax to?
The Canada Revenue Agency. Your employer sends part of it during the year and your return settles the rest.
When was the 2025 return due?
30 April 2026 for most people, and 15 June 2026 to file if you were self-employed. We haven't confirmed 2026 dates.
- 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