2025 Income Tax Rates
Both the federal and provincial governments collect income taxes from individuals in Canada. The federal government handles the majority of the tax collection, while provinces add a smaller percentage. The tax system in Canada is progressive, meaning that those with higher incomes pay a greater percentage than those with lower incomes.
Federal Income Tax Rates for 2025
- 15% on the first $53,359 of taxable income
- 20.5% on taxable income between $53,360 and $106,717
- 26% on taxable income between $106,718 and $165,430
- 29% on taxable income between $165,431 and $235,675
- 33% on taxable income over $235,675
Canadian personal income tax can be deferred in a Registered Retirement Savings Plan (RRSP) and other tax-sheltered accounts that help individuals save for retirement.
Combined Provincial and Federal Income Tax Rates for 2025
The table below displays the combined provincial and federal personal income tax rates for Canadian provinces and territories in 2025. These rates may change in line with updates to federal and provincial budgets.
| Taxable Income Range | Income Tax Rate(s) |
|---|---|
| $20,000 – $40,000 | 10.5% on the first $20,000; 14.0% on the first $30,000; 16.0% on the first $40,000 |
| $42,000 – $58,000 | 18.0% on the first $42,000; 21.5% on the first $50,000; 23.5% on the first $58,000 |
| $60,000 – $70,000 | 24.0% on the first $60,000; 25.0% on the first $66,000; 26.0% on the first $70,000 |
| $72,000 – $82,000 | 26.0% on the first $72,000; 26.5% on the first $76,000; 27.5% on the first $82,000 |
| $84,000 – $94,000 | 28.0% on the first $84,000; 29.0% on the first $90,000; 30.0% on the first $94,000 |
| $96,000 – $115,000 | 30.0% on the first $96,000; 31.5% on the first $105,000; 33.0% on the first $115,000 |
| $120,000 – $150,000 | 33.0% on the first $120,000; 33.5% on the first $125,000; 36.0% on the first $150,000 |
| $200,000 – $400,000 | 39.0% on the first $200,000; 42.0% on the first $300,000; 44.0% on the first $400,000 |
| $500,000 and above | 45.0% on the first $500,000 |