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Canada has no minimum taxable income, but there is a level below which you pay no federal income tax. For 2026 it is the basic personal amount, $16,452 for most people. On the first $16,452 you earn, a 14% credit cancels the tax.
What is the lowest income that gets taxed?
Nobody sets a floor. Every dollar of taxable income counts. What happens is that you also claim a credit for the basic personal amount, and at the lowest tax rate that credit wipes out the tax on the bottom slice. Multiply 16,452 by 14% and you get $2,303.28, the federal credit every resident can claim.
Provinces do the same thing with their own amounts. Here are the ones we checked.
| Level | 2026 basic personal amount |
|---|---|
| Federal, net income up to $181,440 | $16,452 |
| Federal, net income of $258,482 or more | $14,829 |
| New Brunswick | $13,664 |
| Manitoba | $15,780 |
Between $181,440 and $258,482 the federal amount slides down from the top figure to the bottom one. Manitoba’s own page says its amount is also cut for high earners. So the “tax-free” level isn’t the same for everyone.
How much tax do you pay on a low income?
Take an employee in New Brunswick. We ran three pay levels through our income tax engine, which counts the basic amounts and the CPP and EI credits.
At $16,000 of employment income the engine shows no income tax at all. At $12,000 it is the same. At $20,000 the federal tax is $103.49 and the provincial tax is nil, since $20,000 still sits close to the New Brunswick amount of $13,664.
Now the catch. Payroll deductions don’t care about the basic amount. Someone earning $16,000 still pays $1,004.55 in CPP and EI. At $12,000 it is $701.35. So “no tax” rarely means “nothing taken off the pay cheque”.
For comparison, at $60,000 the same engine shows $9,612.63 of income tax and $4,339.75 of CPP and EI. The income tax calculator runs your own number, and the payroll deductions calculator lists each deduction.
Should you file if you owe nothing?
Usually yes. The CRA says you must file if you owe tax, if you want a refund, or if you (or your spouse or partner) want to start or keep getting credits and benefits, such as the Canada child benefit, the GST/HST credit or the guaranteed income supplement. Selling property or repaying benefits also puts you on the list.
A low earner is exactly the person those benefits are for. Skip the return and the payments can stop. The GST/HST credit calculator and the Canada child benefit calculator show what a filed return can bring in.
For the 2025 return the due date was 30 April 2026, or 15 June 2026 if you or your spouse ran a business. We couldn’t find the 2026 return dates on a CRA page yet, so check there before you plan around them.
Can you pull your taxable income lower?
Yes, with deductions. An RRSP contribution comes off income before the tax is worked out, so it reduces the bracket you land in. The RRSP calculator shows the effect. Credits work differently: they cut the tax itself. The tax credits calculator covers federal ones only, so provincial credits need a separate check.
What trips people up?
Mixing up the three incomes on a return. Total income, net income and taxable income are different lines. The basic personal amount shrinks with net income, while the brackets use taxable income.
Another one is treating the credit as a cash refund. It is non-refundable, so it can cut your tax to zero but never below. Employer tax withheld during the year is what comes back as a refund.
Where do these numbers come from?
The 2026 federal amounts are from the CRA’s page on indexed personal amounts, the New Brunswick amount from the CRA’s January 2026 payroll tables, and the Manitoba amount from Manitoba Finance. Filing rules and 2025 dates are from the CRA’s pages for individuals. The tax figures for a pay level come from our own calculator. This website has no connection with the CRA or any other government body.
Frequently asked questions
Is there a minimum taxable income in Canada?
No. All taxable income counts. The basic personal amount credit, $16,452 federally for 2026 for most people, cancels the federal tax on the first part.
Do I pay CPP and EI on a low income?
Yes. In our engine an employee earning $16,000 in New Brunswick pays no income tax but $1,004.55 in CPP and EI.
Do I have to file a return if I earned very little?
The CRA says you must file if you owe tax, want a refund, or want to start or keep benefits and credits such as the GST/HST credit or the Canada child benefit.
Is the basic personal amount the same for everyone?
No. The federal amount falls to $14,829 for net income of $258,482 or more, and each province sets its own amount.
Can the basic personal amount give me a refund?
No. It is non-refundable, so it can reduce your tax to zero but not below it.
- 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
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.