Updated Checked by the Tax-Services.ca editorial team How we check
Canada has no state tax, because it has provinces and territories. Each one sets its own income tax rates, and they range in 2026 from 4% in Nunavut’s first bracket to 21.8% at the top in Newfoundland and Labrador. If you’re after US state rates, we haven’t covered them.
What are the provincial tax rates in 2026?
The CRA’s 2026 rates page gives the lowest and highest rate for each province and territory. Every rate applies only to the income inside its bracket, and federal tax comes on top. Quebec isn’t in the table because Revenu Québec sets its scale and the CRA page sends you there.
| Province or territory | Lowest rate | Highest rate |
|---|---|---|
| Alberta | 8% | 15% |
| British Columbia | 5.6% | 20.5% |
| Manitoba | 10.8% | 17.4% |
| New Brunswick | 9.4% | 19.5% |
| Newfoundland and Labrador | 8.7% | 21.8% |
| Northwest Territories | 5.9% | 14.05% |
| Nova Scotia | 8.79% | 21% |
| Nunavut | 4% | 11.5% |
| Ontario | 5.05% | 13.16% |
| Prince Edward Island | 9.5% | 20% |
| Saskatchewan | 10.5% | 14.5% |
| Yukon | 6.4% | 15% |
The number of brackets differs too. Ontario has five, Saskatchewan has three and Newfoundland and Labrador has eight. We left the dollar limits out, because two official sources we found disagree on a few of them (Manitoba and Prince Edward Island), so check the CRA’s 2026 tax rates and income brackets page for exact thresholds.
Why doesn’t a low starting rate mean low tax?
The starting rate only covers the first slice of your income. What you pay depends on where your pay lands on the whole scale, the basic personal amount and the federal share. Ontario starts at 5.05% and Nova Scotia at 8.79%, and at $60,000 the Ontario resident pays much less. The income tax calculator gives $8,320.50 of total income tax in Ontario and $10,933.91 in Nova Scotia on that pay. That’s $2,613.41 a year apart on the same paycheque.
Ontario also adds a health premium and, at higher incomes, a surtax, so the top rate on paper doesn’t tell the full story there.
How do the brackets add up in a real case?
Take Ontario and $60,000 of taxable income. The first $53,891 is taxed at 5.05%, which is $2,721.50. The remaining $6,109 is taxed at 9.15%, which is $558.97. Together that’s $3,280.47 before any credits. The calculator’s Ontario line for the same pay is $2,982.20, because credits come off the total and Ontario’s health premium goes on. It shows why nobody pays 9.15% on the whole $60,000.
The federal side works the same way, with 14% on the first $58,523 and 20.5% on the small amount above it.
How can you estimate your own bracket?
You don’t need software for a rough answer. Start from your taxable income, which is your pay less deductions such as RRSP contributions. Find the slice it falls into on your province’s scale, and tax the part inside each slice at that slice’s rate. Do the same on the federal scale, add the two, then subtract your credits. It’s a ballpark, and it gets you close enough to tell whether a refund or a bill is coming.
How much does the next dollar cost at $60,000?
This is the figure to compare between provinces, because it shows what a raise or a side job gets you. The marginal tax rate calculator shows this for ordinary income at $60,000:
| Province | Federal plus provincial rate on the next dollar |
|---|---|
| Nunavut | 27.5% |
| British Columbia | 28.2% |
| Alberta | 28.5% |
| Ontario | 29.6% |
| Nova Scotia | 35.4% |
Nova Scotia’s is the highest of these five. It’s the federal 20.5% and the province’s 14.95% second rate stacked together.
Do the gaps grow at $100,000?
They do, and in Nova Scotia’s case by a lot. On $100,000 of employment income the calculator gives $18,857.12 of total income tax in British Columbia, $19,771.98 in Alberta, $20,024.35 in Ontario and $25,363.37 in Nova Scotia. British Columbia stays lowest of the four, though its top rate is 20.5% and Alberta’s is 15%.
So the starting rate and the top rate say little about the middle of the scale. Use your own income.
Think of Aisha, who is deciding between a job offer in Halifax and one in Calgary at the same salary. The table says Alberta’s top rate is far lower, but at her salary she’ll never touch the top bracket. What she’ll feel is the rate on the middle slices and the size of the personal amount. Comparing the two cities means comparing take-home pay, not headline rates, and rent and groceries will move the answer more than tax does.
What do these rates leave out?
Plenty, starting with the fact that they’re rates on taxable income and not on your pay, which is a smaller number once deductions such as RRSP contributions are taken off. Credits then cut the bill, and CPP and EI come on top. Sales tax and property tax are separate again, and nothing here covers those.
Provincial credits also differ. The tax credits calculator handles only federal ones, so your provincial credits won’t show up in it. Check your provincial form for those.
Where the numbers come from
Rate ranges come from the Canada Revenue Agency‘s 2026 tax rates and income brackets page. Personal amounts and the rest of the calculator data come from CRA payroll tables and provincial finance sites, rechecked on 29 September 2026. Quebec figures are with Revenu Québec. This is an independent guide, separate from any government body.
Frequently asked questions
Does Canada have state income tax?
No. Canada has provinces and territories, and each sets its own income tax rates on top of federal tax.
Which province has the lowest starting income tax rate?
Nunavut, at 4% in 2026.
Which province has the highest top rate?
Newfoundland and Labrador, at 21.8% on income above $1,141,275.
Do provincial rates replace federal tax?
No. Per the CRA, provincial and territorial rates apply in addition to federal rates.
Are Quebec rates on the CRA page?
No. The CRA page points to Revenu Québec, which sets Quebec's own scale.