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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 2026 table 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, because only the dollars above that line get taxed at 20.5% while everything below it stays at 14%, which means a raise can never leave you with less pay than before. Simple as that.
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 tool below includes both Ontario items, though we could only confirm the top steps of the health premium, not how it climbs between 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% |
Gap between the two provinces? 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 we haven’t tabulated here.
Marginal rate or average rate, which one matters?
Which one? Start with what you’re asking. If you’re asking what tax 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. We’ve seen it show a jump there that we haven’t traced to a cause, so check that figure 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.
Mistakes people make with the rates
Two, mostly.
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. apply to taxable income, which is after deductions like RRSP contributions, and they aren’t reduced yet by credits. Mixing up the year is the other, since these are 2026 figures, and the 2025 return was filed on 2025 rates.
Income that isn’t ordinary, such as dividends or capital gains, follows different rules. The dividend tax calculator covers dividends.
Where do the rates 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. We aren’t connected to the CRA or any government.
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
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.