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Federal personal tax rates for 2026 run from 14% on the first $58,523 of taxable income to 33% above $258,482, and your province adds its own rates on top. In Ontario a person with $60,000 of taxable income pays about $9,417 in total, an average of 15.7%.
What are the 2026 federal tax brackets?
There are five, and each rate applies only to the slice of income inside that bracket. The CRA’s tax rates and income brackets page links to the 2026 table, which looks like this.
| 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% |
Crossing $58,523 doesn’t reprice your whole income. Only the dollars above that line get taxed at 20.5%, and everything below it stays at 14%. A raise can never leave you with less pay than before. Simple as that.
Here’s how it plays out for Sam in Calgary, with $75,000 of taxable income. The first $58,523 is taxed at 14%, which is $8,193.22. The remaining $16,477 is taxed at 20.5%, which is $3,377.79. Federal tax comes to about $11,571 before any credits, an average of 15.4%, even though Sam’s top bracket is 20.5%.
How do provincial rates change the picture?
Every province sets its own, so your combined rate depends on where you lived on December 31. Two of the most searched examples:
| Ontario taxable income | Rate | Alberta taxable income | Rate |
|---|---|---|---|
| Up to $53,891 | 5.05% | Up to $61,200 | 8% |
| $53,891 to $107,785 | 9.15% | $61,200 to $154,259 | 10% |
| $107,785 to $150,000 | 11.16% | $154,259 to $185,111 | 12% |
| $150,000 to $220,000 | 12.16% | $185,111 to $246,813 | 13% |
| Over $220,000 | 13.16% | $246,813 to $370,220 | 14% |
| Over $370,220 | 15% |
Ontario also charges a health premium and, at higher incomes, a surtax. Alberta has neither. The calculator below includes both Ontario items, though only the top steps of the health premium could be confirmed, not how it climbs between them. Quebec residents file a separate provincial return with Revenu Quebec, so these tables don’t apply to them.
What is the personal tax rate on $60,000 or $100,000?
Here are our calculator’s totals for taxable income in 2026, federal plus provincial, counting only the basic personal amounts as credits.
| Taxable income | Ontario tax | Ontario average | Alberta tax | Alberta average |
|---|---|---|---|---|
| $40,000 | $5,111 | 12.8% | $4,675 | 11.7% |
| $60,000 | $9,417 | 15.7% | $9,171 | 15.3% |
| $100,000 | $21,521 | 21.5% | $21,347 | 21.3% |
| $150,000 | $41,626 | 27.8% | $38,410 | 25.6% |
The gap between the two provinces is small at $60,000, about $246 a year. At $150,000 it’s $3,216, and most of that comes from Ontario’s surtax and higher top rates.
Try your own number in the income tax calculator. It also handles the other provinces and territories, which aren’t tabulated here.
Marginal rate or average rate, which one matters?
It depends on the question. If you’re asking what the taxman takes from an extra $1,000, you want the marginal rate. If you’re asking how much of your whole income goes to tax, you want the average.
The marginal tax rate calculator is the tool for the first question. Treat it with some care near $200,000 in Ontario, where it can show a jump that’s worth checking against your own return. For what lands in your bank account, the take-home pay calculator adds CPP and EI, which taxable-income tables leave out.
What lowers the tax you pay?
Credits and deductions. The federal basic personal amount for 2026 is up to $16,452, and a credit is worked out at the lowest rate, 14%. So at higher incomes, a $1,000 deduction saves you more than a $1,000 credit does.
An RRSP contribution is a deduction, so it removes income from the top of your stack. The RRSP calculator shows what that saves. Other credits, like the age amount or disability amount, are estimated in the tax credits calculator, which is federal only.
Do the brackets change every year?
Yes. The federal thresholds are indexed for inflation, so the dollar figures move up a little each January even when the rates stay put. Provinces handle their own thresholds, and some index them while others don’t. That’s why a table from a few years ago won’t match your return, and why it pays to check the year at the top of any chart you find.
Mistakes people make with the rates
Two, mostly, and one more worth a mention.
Reading a rate table as a total tax bill is the common one. The rates apply to taxable income, which is what’s left after deductions such as an RRSP contribution, and credits come off the tax afterwards, so your real bill is lower than a table alone suggests. Mixing up the year is the other. These are 2026 figures, and the 2025 return was filed on 2025 rates.
The extra one is panic at a bracket line. People turn down overtime or a bonus because it “pushes them into a higher bracket”. It doesn’t work that way, as Sam’s example shows: only the dollars past the line are taxed at the higher rate, and you keep most of every extra dollar. Pay is also taxed through the year at a withholding estimate, so a fat bonus cheque can look worse on the stub than it does on your final return.
Income that isn’t ordinary, such as dividends or capital gains, follows different rules. The dividend tax calculator covers dividends.
Where these figures come from
The Canada Revenue Agency‘s 2026 tax rates and brackets page lists the federal and provincial figures, and the basic personal amount comes from its indexation page. The totals are from our calculator’s 2026 data. This is an independent guide, separate from any government body.
Frequently asked questions
What is the lowest federal tax rate in 2026?
14%, on taxable income up to $58,523.
Does moving into a higher bracket reduce my take-home pay?
No. Only the dollars above the bracket line are taxed at the higher rate.
Which year's rates apply to my 2025 return?
The 2025 rates. The figures on this page are for 2026.
Is Alberta's tax lower than Ontario's?
On our calculator's numbers, yes at every income we tried: $246 less at $60,000 and $3,216 less at $150,000, before CPP and EI.
Do the brackets include CPP and EI?
No. Those are separate payroll deductions. The take-home pay calculator adds them.
- 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