Updated Checked by the Tax-Services.ca editorial team How we check
Income tax rates in Canada for 2026 start at 14% on the first $58,523 of income you report and reach 33% above $258,482. Your province adds its own tax on top. In Ontario, a person with $80,000 of income pays 29.65% on the next dollar, federal and provincial together.
What are the federal tax brackets for 2026?
Canada taxes income in steps, and each rate applies only to the slice of income that sits inside its bracket. The CRA lists the same five federal steps on its tax rates and income brackets page.
| 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% |
Behind the brackets sits the personal credit, an amount that shields the first part of your income. For 2026 it’s $16,452 at lower incomes, and it shrinks to $14,829 between $181,440 and $258,482.
Here’s the step-by-step on a plain federal figure. Say Alex has $70,000 of taxable income. The first $58,523 is taxed at 14%, which is $8,193.22. The remaining $11,477 is taxed at 20.5%, which is $2,352.79. That adds up to $10,546.01 of federal tax before credits. The basic personal amount then takes 14% of $16,452, or $2,303.28, off the bill, leaving $8,242.73 before any other credit. The taxman never touched the first $58,523 at 20.5%.
How do Ontario and other provinces add to that?
Ontario has five brackets of its own, plus a surtax once its basic tax gets high: 20% of Ontario tax above $5,818, and another 36% above $7,446. The surtax is why the real Ontario rate looks higher than the bracket list suggests.
| Ontario taxable income | Ontario rate |
|---|---|
| Up to $53,891 | 5.05% |
| $53,891 to $107,785 | 9.15% |
| $107,785 to $150,000 | 11.16% |
| $150,000 to $220,000 | 12.16% |
| Over $220,000 | 13.16% |
Every other province sets its own brackets. Here are the lowest and top rates for some of them in 2026.
| Province or territory | Lowest rate | Top rate |
|---|---|---|
| Alberta | 8% | 15% |
| Saskatchewan | 10.5% | 14.5% |
| Manitoba | 10.8% | 17.4% |
| New Brunswick | 9.4% | 19.5% |
| Nova Scotia | 8.79% | 21% |
| Northwest Territories | 5.9% | 14.05% |
| Nunavut | 4% | 11.5% |
What do you pay on the next dollar in Ontario?
That last-dollar rate is the federal and Ontario rates added together, with the surtax and other steps built in. The figures below come from our engine and cover ordinary income such as salary. Credits and benefit phase-outs aren’t in them.
| Taxable income | Rate on the next dollar | Tax on the whole amount | Share of income |
|---|---|---|---|
| $40,000 | 19.05% | $5,110.78 | 12.8% |
| $55,000 | 23.15% | $8,163.74 | 14.8% |
| $80,000 | 29.65% | $15,497.25 | 19.4% |
| $100,000 | 31.48% | $21,520.55 | 21.5% |
| $120,000 | 43.41% | $28,602.76 | 23.8% |
| $160,000 | 44.97% | $46,122.60 | 28.8% |
| $240,000 | 49.82% | $84,489.79 | 35.2% |
What does one $100,000 salary look like start to finish?
Take an Ontario employee with $100,000 of employment income. The income tax calculator lands on taxable income of $98,873 after the CPP deduction, and total federal and Ontario tax of $20,024.35. That’s an average of 20.0%, far below the 31.48% paid on the last dollar. CPP and EI come on top at $5,769.52, which leaves $74,206.13.
The gap between average and marginal rate is why a raise never lowers your pay. Only the extra slice gets the higher rate. Want your own number? Open the marginal tax rate calculator. And for what actually reaches your bank account, use the take-home pay calculator.
Where do people misread these rates?
The classic slip is applying the top rate to all your income. Another is holding a rate up against a pay stub. Payroll tables spread tax across the year, so one pay period can sit a little off the annual total.
Rates can also jump at odd points for reasons that have nothing to do with brackets. The Ontario health premium rises in steps, so a small bump in income near a step can cost far more than its rate. Our engine shows this around $200,000. Don’t read that figure as a rate.
A few provincial figures are softer than the rest. British Columbia’s lowest rate is reported at 5.6% for 2026, but CRA payroll sources show other values. Quebec, Newfoundland and Labrador, Prince Edward Island and Yukon rest on sources we couldn’t fully confirm, so they’re not in the table. Read the CRA page first if you plan to use them. Dividends and capital gains are taxed differently, and tax credits lower the tax itself.
Not sure which of these numbers applies to your own situation? Start with your taxable income, not your gross pay, find the federal band it falls in, then add your province’s band and any surtax. That gives you the rate on your next dollar. For your total bill, use a calculator that runs the whole return rather than multiplying a rate by your salary.
One last thing: bracket limits are indexed for inflation and reset every year. Federal indexation for 2026 is 2%, so last year’s table is out of date.
Where this information comes from
The federal brackets and the personal credit come from the Canada Revenue Agency tax rates page for 2026. Ontario figures are from the CRA payroll and provincial tax tables. Other provincial rates come from CRA and provincial finance pages, collected in September 2026. This site is independent and has no link with the CRA or any government.
Frequently asked questions
What is the lowest federal tax rate in 2026?
14%, on the first $58,523 of taxable income.
What is the top federal tax rate in 2026?
33%, on taxable income above $258,482.
What is the combined rate in Ontario at $80,000?
The next dollar is taxed at 29.65%, which is the federal 20.5% plus the Ontario 9.15%. Tax on the whole $80,000 comes to $15,497.25.
Do I pay the top rate on all my income?
No. Each rate only touches the slice of income inside its bracket.
Is the average rate the same as the marginal rate?
No. On $100,000 in Ontario the average is about 20%, while the next dollar is taxed at 31.48%.