Canada tax brackets 2026: federal, provincial and territorial rates

Canadian income tax is charged twice on the same income: once by the federal government and once by the province or territory where you live on December 31. Both use brackets, and both apply each rate only to the slice of taxable income inside that bracket. This page lists every 2026 bracket from official Canada Revenue Agency (CRA), Revenu Québec and provincial sources, explains how marginal and average rates really work, and walks through a full calculation. It is a reference, not tax advice: your exact result depends on your deductions and credits, and your notice of assessment in CRA My Account is the final word.

For the strategy side (which accounts to fund first once you know your bracket), see the guide to Canadian tax optimization with the TFSA, RRSP and FHSA. This page sticks to the numbers.

What are the federal tax brackets for 2026?

The federal government sets one set of brackets for every province and territory. For 2026 the lowest rate is 14% for the full year, after the cut from 15% on July 1, 2025 (the 2025 return used a blended 14.5%). The thresholds rise each year with inflation.

How to read this table: each rate applies from the limit in the row above (starting at $0) up to the limit in its own row. The last row has no upper limit (shown as a dash): the top rate applies to all taxable income above the previous limit.

Federal rate	Applies to taxable income up to
14%	$58,523
20.5%	$117,045
26%	$181,440
29%	$258,482
33%	—

Source: Current year tax rates and income brackets (2026) — Canada.ca; Indexation adjustment for personal income tax and benefit amounts — Canada.ca; T4127 Payroll Deductions Formulas, 122nd edition (effective January 1, 2026) — BPAF formula; T4127 Payroll Deductions Formulas, 122nd edition (effective January 1, 2026) — Federal changes; Form TD1, 2026 Personal Tax Credits Return (PDF) — Canada.ca; Form TD1-WS, Worksheet for the 2026 Personal Tax Credits Return (PDF) — Canada.ca; Budget 2025 — Tax measures, supplementary information (Top-Up Tax Credit) — credit rate; Budget 2025 — Tax measures, supplementary information (Top-Up Tax Credit) — top-up years; Line 34990 – Top-up tax credit — Canada.ca; Bill C-4 (45-1), Making Life More Affordable for Canadians Act — LEGISinfo; Bill C-15 (45-1), Budget 2025 Implementation Act, No. 1 — LEGISinfo; Bill C-15 (45-1), royal assent text, section 125 — new Income Tax Act subsection 118(11) Top-up tax credit. In effect from January 1, 2026 to December 31, 2026; checked September 29, 2026.

Two federal details change the numbers people actually pay:

• The 14% rate also sets the value of most federal credits. Non-refundable credits such as the basic personal amount, CPP and EI contributions and the Canada employment amount are multiplied by 14%. A top-up tax credit keeps a 15% credit rate on credit amounts above the first bracket threshold ($58,523 for 2026) for the 2025 to 2030 tax years, which only matters for very large claims such as big medical or tuition amounts.
• High earners lose part of the basic personal amount. Between net income of $181,440 and $258,482, the federal basic personal amount shrinks from $16,452 to $14,829. That lost credit adds roughly 0.29 percentage points to the federal marginal rate across that range.

What are the provincial and territorial tax brackets for 2026?

Every province and territory sets its own brackets, rates and basic personal amount. Quebec runs its own income tax return; the other twelve jurisdictions are collected by the CRA on the same T1 return as federal tax. The sections below cover each one, with the details that set it apart.

Ontario tax brackets 2026

Ontario has five brackets. The Ontario basic personal amount is $12,989, credited at 5.05%. Ontario is also the only province with a surtax, and it charges a separate health premium, both explained further down.

How to read this table: each rate applies from the limit in the row above (starting at $0) up to the limit in its own row; the dash in the last row means no upper limit. Surtax and health premium are extra.

Ontario rate	Applies to taxable income up to
5.05%	$53,891
9.15%	$107,785
11.16%	$150,000
12.16%	$220,000
13.16%	—

Source: Current year tax rates and income brackets (2026) — Canada.ca (all provinces and territories except Quebec); T4127 Payroll Deductions Formulas, 122nd edition (effective January 1, 2026) — Table 8.2 provincial basic amounts; T4127, 122nd edition — non-refundable credits use the lowest provincial or territorial rate; T4127, 122nd edition — surtax applies only to Ontario; T4127, 122nd edition — Ontario surtax (factor V1) for 2026; T4127, 122nd edition — Ontario Health Premium (factor V2); T4127, 122nd edition — Manitoba 2026 basic personal amount and brackets (not indexed); T4127, 122nd edition — Manitoba basic personal amount phase-out (BPAMB formula); T4127, 122nd edition — Yukon basic personal amount mirrors the federal amount; T4127, 122nd edition — federal BPAF formula (used for Yukon); T4127, 122nd edition — Alberta credit rate (8%) and supplemental credit (factor K5P); T4127, 122nd edition — Prince Edward Island basic personal amount; T4127, 122nd edition — Saskatchewan basic personal amount; T4127, 122nd edition — Nova Scotia basic personal amount no longer income-tested; T4127 Payroll Deductions Formulas, 123rd edition (effective July 1, 2026) — British Columbia lowest rate; T4127, 123rd edition — British Columbia annual (non-prorated) credit rate, Option 2; T4127, 123rd edition — Newfoundland and Labrador basic personal amount; Personal Income Tax — Newfoundland and Labrador Department of Finance (2026 rates and credits); Personal income tax rates — Province of British Columbia (2026 tax year); Basic tax credits — Province of British Columbia (2026 base amounts); T4127, 123rd edition — Prince Edward Island new bracket above $200,000; T4127, 123rd edition — no July 2026 changes for the other provinces and territories; Personal Income Taxes — Manitoba Finance (indexation paused from 2025); Information Bulletin 126 — Taxation Changes, Budget 2026 (PDF) — no personal income tax bracket changes; Form MB428, Manitoba Tax 2025 (PDF) — frozen thresholds as used on the return; Form ON428, Ontario Tax 2025 (PDF) — Ontario health premium chart; Health premium — Ontario.ca; Worksheet AB428, 2025 (PDF) — Alberta supplemental tax credit; Income Tax Rates — Revenu Québec (2026); Employers: Principal Changes for 2026 — Revenu Québec (Québec basic personal amount); TP-1015.F-V (2026-01), Formulas for calculating source deductions (PDF) — Québec credit conversion rate; Parameters of the Personal Income Tax System for 2026 (PDF); T4032-QC Payroll Deductions Tables, January 2026 — general information (Quebec abatement); Quebec Abatement — Canada.ca. In effect from January 1, 2026 to December 31, 2026; checked September 29, 2026.

Because federal and Ontario thresholds don’t line up, an Ontario resident moves through nine combined bands. The table below adds the two statutory rates for each band.

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How to read this table: the combined rate is what one extra dollar in that band costs in federal plus Ontario bracket tax. Once the Ontario surtax applies (from roughly $94,900 of taxable income for someone claiming only the basic personal amount), the Ontario part is multiplied by up to 1.56, so the real top Ontario rate is 53.53%.

Quebec tax brackets 2026

Quebec residents file two returns: the federal T1 with the CRA and the TP-1 with Revenu Québec, which sets its own brackets. Quebec thresholds were indexed by 2.05% for 2026, the Quebec basic personal amount is $18,952 and credits are worked out at 14%.

Quebec residents also get the Quebec abatement, a reduction of 16.5% of basic federal tax, because Quebec funds some programs that the federal government funds elsewhere. That is why a Quebec resident’s federal tax is lower than a resident of another province with the same income.

British Columbia (BC) tax brackets 2026

BC has seven brackets, the most of any province except Newfoundland and Labrador. For 2026, BC raised its lowest rate from 5.06% to 5.6%, and the BC basic personal amount is $13,216. The BC tax reduction (a separate credit of up to $690, reduced by 3.56% of income over $25,570) lowers tax for lower incomes. BC has also said it will pause indexation of its brackets and credits at 2026 levels for 2027 to 2030.

Watch the payroll numbers: from July 2026, BC payroll tables use a temporary 6.14% lowest rate to catch up on the first half of the year. That is a withholding device, not the rate on the tax return.

Alberta tax brackets 2026

Alberta has six brackets, starting at 8%, and the largest provincial basic personal amount in Canada at $22,769. Alberta credits are worked out at 8%, but a supplemental credit keeps an effective 10% rate on credit amounts above $61,200, so large credit claims are not penalised by the lower first rate.

Saskatchewan tax brackets 2026

Saskatchewan has three brackets. Its basic personal amount of $20,381 includes an extra $500 a year on top of indexation under The Saskatchewan Affordability Act.

Manitoba tax brackets 2026

Manitoba froze its bracket thresholds and basic personal amount from 2025, so they no longer rise with inflation. The basic personal amount of $15,780 also shrinks for high earners, falling to zero between net income of $200,000 and $400,000.

One caution: the CRA’s online rate table shows Manitoba thresholds of $47,564 and $101,200, which conflicts with the CRA’s own payroll formulas, Manitoba Finance, Manitoba’s 2026 budget bulletin and the 2025 MB428 return form. This page uses the frozen amounts those four sources agree on.

Nova Scotia tax brackets 2026

Nova Scotia has five brackets and a basic personal amount of $11,932, the lowest in Canada. For 2026 the full amount applies at every income level; the old income-tested version was removed.

New Brunswick tax brackets 2026

New Brunswick has four brackets and a basic personal amount of $13,664, with no mid-year changes in 2026.

Newfoundland and Labrador tax brackets 2026

Newfoundland and Labrador has eight brackets, the most in Canada, with the top rate starting above $1,141,275. Its basic personal amount rose from $11,188 to $13,094 for 2026.

Prince Edward Island tax brackets 2026

PEI added a sixth bracket for 2026: 20% on taxable income above $200,000. Its basic personal amount rose from $14,650 to $15,000. As in BC, payroll tables from July 2026 use a temporary 21% top rate to catch up; the annual rate on the return is 20%.

Yukon tax brackets 2026

Yukon’s first three thresholds match the federal ones, and its basic personal amount mirrors the federal amount: $16,452, shrinking to $14,829 for high earners.

Northwest Territories tax brackets 2026

The Northwest Territories has four brackets and a basic personal amount of $18,198.

Nunavut tax brackets 2026

Nunavut has the lowest provincial or territorial rates in Canada at almost every income level, starting at 4%, and a basic personal amount of $19,659.

How do marginal and average tax rates work?

The bracket system is progressive: each rate applies only to the income that falls inside its bracket. Nobody pays the top rate on all of their income. Two different rates come out of this, and mixing them up is the most common tax misunderstanding in Canada.

• Marginal rate: the combined federal and provincial rate on the next dollar of taxable income. It is the rate that matters when deciding whether a raise, overtime shift, side income or RRSP contribution is worth it.
• Average (effective) rate: total income tax divided by income. It is always lower than the marginal rate, because the lower brackets and the basic personal amount pull it down.

Tax is also reduced by non-refundable credits after the bracket calculation. The basic personal amount is the main one, but it is a credit, not a deduction: the amount is multiplied by the lowest rate in that jurisdiction, and the result is subtracted from tax. That is why a $16,452 federal basic personal amount is worth $2,303.28 in federal tax, whatever bracket someone is in.

How much tax is paid on a typical Ontario salary? A worked example

Take a hypothetical Ontario resident with $80,000 of taxable income in 2026 who claims only the basic personal amounts. Real returns also include CPP and EI contribution credits and the Canada employment amount, which lower the tax a little further, so treat this as the shape of the calculation rather than an exact bill.

The average rate is 19.37%. The marginal rate is 29.65%, so a $1,000 raise adds about $296.50 of income tax and leaves about $703.50 more in pocket before CPP and EI. The health premium does not move, because it is already at the cap for this band.

Now raise the income to $120,000. Basic federal tax becomes $18,655.25 and basic Ontario tax becomes $8,360.05. That is above both surtax thresholds, so the surtax adds $837.47. With the $750 health premium, total tax is $28,602.77, an average rate of 23.84%. The marginal rate is now 43.41%, well above the 37.16% the bracket tables alone suggest.

A planned income tax calculator on this site will run these steps for any income and province, including CPP, EI and the other common credits.

What are the basic personal amounts for 2026?

The basic personal amount (BPA) is the income on which no tax is charged, delivered as a credit at each jurisdiction’s lowest rate. The table shows each 2026 amount and how much tax it removes.

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How to read this table: a bigger basic personal amount does not always mean a bigger saving. Alberta’s amount is the largest, but Quebec’s and Saskatchewan’s credits remove more tax because they are multiplied by higher rates. Federal and Yukon amounts shrink for high earners, and Manitoba’s disappears between net income of $200,000 and $400,000.

Other common 2026 federal credits work the same way at 14%: the age amount of up to $9,208 for people 65 and older (reduced by 15% of net income above $46,432), the pension income amount on up to $2,000 of eligible pension income, and the Canada employment amount of up to $1,501.

How do the Ontario surtax and health premium work?

Ontario adds two charges that the bracket table does not show.

Ontario surtax. After basic Ontario tax is worked out (bracket tax minus non-refundable credits), Ontario adds 20% of the amount above $5,818 plus 36% of the amount above $7,446. Because it is a tax on tax, it raises the effective Ontario rate at every bracket once it applies. For someone claiming only the basic personal amount, it starts at roughly $94,900 of taxable income and the second layer at roughly $111,800. Extra credits, such as a spouse amount or large medical expenses, push those points higher.

Ontario health premium. The premium is charged through the tax return and depends on taxable income, not on tax. It is zero on taxable income of $20,000 or less and then rises in steps: 6% of income over $20,000, up to $300; $300 plus 6% of income over $36,000, up to $450; $450 plus 25% of income over $48,000, up to $600; $600 plus 25% of income over $72,000, up to $750; and $750 plus 25% of income over $200,000, reaching the $900 maximum at $200,600. The premium is not indexed to inflation, and the Ontario tax reduction (a basic amount of $300 plus $554 per eligible dependant, which trims Ontario tax for lower incomes) does not reduce it. Lower-income Ontario households may also qualify for the Ontario Trillium Benefit, which is paid separately.

What is the combined top marginal rate in each province?

The top combined rate is the federal top rate plus the provincial top rate, with Ontario’s surtax and Quebec’s abatement built in. The table is sorted from lowest to highest top rate.

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How to read this table: these are statutory rates on ordinary income such as salary and interest. They leave out provincial tax reductions, benefit clawbacks and Manitoba’s basic personal amount phase-out (which adds about 0.85 percentage points to the Manitoba rate between net income of $200,000 and $400,000), and capital gains and dividends are taxed at lower effective rates. The “applies above” column is the income at which both the federal and provincial top brackets are in effect.

Who do these tax brackets apply to?

The 2026 brackets apply to income earned from January 1 to December 31, 2026, reported on the return filed in spring 2027. Provincial tax depends on where you live on December 31: someone who moves from Ontario to Alberta in November pays Alberta tax on the whole year’s income. People who carry on a business in more than one province split business income by province on a separate form.

Newcomers who become residents partway through the year are taxed as residents only from their arrival date, and some credits, including the basic personal amount, are prorated for the part-year. The guide to filing a first Canadian tax return as a newcomer walks through that return, and the NR74 tax residency guide covers how residency is decided. Non-residents with Canadian income follow different rules.

How is income tax calculated from the brackets?

The return runs the same sequence for everyone:

1. Total income adds up employment, self-employment, pension, interest, the taxable part of capital gains, grossed-up dividends and other income.
2. Deductions such as RRSP and FHSA contributions, child care expenses and union dues are subtracted to reach net income, and a few more deductions give taxable income (line 26000).
3. Federal brackets are applied to taxable income, then federal non-refundable credits are subtracted to get basic federal tax.
4. Provincial or territorial brackets are applied to the same taxable income, then provincial credits, surtaxes, premiums and reductions are worked out.
5. Tax already paid through payroll withholding and instalments is subtracted. The result is a refund or a balance owing.

Because deductions come off before the brackets are applied, a deduction saves tax at the marginal rate. A $5,000 RRSP contribution by the Ontario worker earning $80,000 above saves about $1,482.50. The RRSP dollar limit for 2026 is $33,810, and personal room depends on earned income; the RRSP contribution limit guide explains how to find it, and the TFSA vs RRSP comparison shows why the bracket at contribution time versus withdrawal time decides which account wins.

What if the tax withheld looks wrong or a tax bill arrives?

Employers withhold tax using the TD1 forms you filled in when you started. If you have a second job, large deductions or credits the employer does not know about, withholding can be off in either direction.

1. Check your notice of assessment in CRA My Account. It shows the CRA’s final figure for taxable income, tax and credits. Quebec residents also check Revenu Québec’s My Account for the provincial return.
2. Update your TD1 forms with each employer if withholding is consistently too low (for example, two jobs each applying the full basic personal amount) or too high.
3. Fix an error on a filed return through the online return-change service in CRA My Account or through certified tax software, rather than filing a second return.
4. Call the CRA’s individual tax enquiries line, listed on the CRA contact page at canada.ca, if the assessment does not match your records. Revenu Québec has its own line for the provincial return.

Payroll tables in BC, PEI and Newfoundland and Labrador used temporary catch-up amounts from July 2026, so year-end refunds or balances in those provinces may look different from other years. Free and paid options for filing are compared in the guide to free tax software in Canada.

What were the 2025 tax brackets, and what changed for 2026?

Returns filed in spring 2026 used the 2025 brackets. The lowest federal rate for 2025 was 14.5%, a blended rate because the rate fell from 15% to 14% on July 1, 2025.

How to read this table: each rate applies from the limit in the row above (starting at $0) up to the limit in its own row; the dash in the last row means no upper limit.

Federal rate	Applies to taxable income up to
14.5%	$57,375
20.5%	$114,750
26%	$177,882
29%	$253,414
33%	—

Source: Last year tax rates and income brackets (2025) — Canada.ca (federal); Last year tax rates and income brackets (2025) — Canada.ca (federal 14.5% footnote); Last year tax rates and income brackets (2025) — Canada.ca (Ontario); Last year tax rates and income brackets (2025) — Canada.ca (Alberta); Last year tax rates and income brackets (2025) — Canada.ca (British Columbia); Last year tax rates and income brackets (2025) — Canada.ca (New Brunswick, Newfoundland and Labrador); Last year tax rates and income brackets (2025) — Canada.ca (Northwest Territories, Nova Scotia, Nunavut); Last year tax rates and income brackets (2025) — Canada.ca (Prince Edward Island, Quebec reference); Last year tax rates and income brackets (2025) — Canada.ca (Saskatchewan, Yukon); Form MB428, Manitoba Tax 2025 (PDF) — Manitoba thresholds used on the 2025 return. In effect from January 1, 2025 to December 31, 2025; checked September 29, 2026.

How to read this table: each rate applies from the limit in the row above (starting at $0) up to the limit in its own row; the dash in the last row means no upper limit. Surtax and health premium are extra.

Ontario rate	Applies to taxable income up to
5.05%	$52,886
9.15%	$105,775
11.16%	$150,000
12.16%	$220,000
13.16%	—

Source: Last year tax rates and income brackets (2025) — Canada.ca (federal); Last year tax rates and income brackets (2025) — Canada.ca (federal 14.5% footnote); Last year tax rates and income brackets (2025) — Canada.ca (Ontario); Last year tax rates and income brackets (2025) — Canada.ca (Alberta); Last year tax rates and income brackets (2025) — Canada.ca (British Columbia); Last year tax rates and income brackets (2025) — Canada.ca (New Brunswick, Newfoundland and Labrador); Last year tax rates and income brackets (2025) — Canada.ca (Northwest Territories, Nova Scotia, Nunavut); Last year tax rates and income brackets (2025) — Canada.ca (Prince Edward Island, Quebec reference); Last year tax rates and income brackets (2025) — Canada.ca (Saskatchewan, Yukon); Form MB428, Manitoba Tax 2025 (PDF) — Manitoba thresholds used on the 2025 return. In effect from January 1, 2025 to December 31, 2025; checked September 29, 2026.

The table below compares the first bracket and the lowest and top rates in both years for every jurisdiction the CRA collects for (Quebec’s 2025 rates are published by Revenu Québec).

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How to read this table: most thresholds rose with inflation. The real policy changes are the federal rate cut, BC’s higher lowest rate, PEI’s new top bracket and Manitoba’s freeze.

Common mistakes with tax brackets

• Believing a raise can cost money. A higher bracket only taxes the extra dollars at the higher rate. What can bite is a benefit clawback, such as the OAS recovery tax for seniors, which is separate from the brackets.
• Applying brackets to gross salary. Brackets apply to taxable income, after RRSP, FHSA and other deductions.
• Treating the basic personal amount as a deduction. It is a credit at the lowest rate, so it is worth the same number of dollars at every income, apart from the federal, Yukon and Manitoba phase-outs.
• Forgetting Ontario’s extras. The surtax and health premium mean an Ontario resident pays more than the Ontario bracket rates alone suggest.
• Reading payroll rates as annual rates. BC’s 6.14% and PEI’s 21% catch-up rates in the July 2026 payroll tables are not the rates on the 2026 return.
• Assuming RRSP withholding is the final tax. Tax withheld on an RRSP withdrawal is only a prepayment; the withdrawal is added to income and taxed at the marginal rate on the return. The RRSP withdrawal tax calculator shows the gap.

Related tools and guides

The brackets are the input to most money decisions in Canada: whether RRSP or TFSA saving comes first, how much an RRSP withdrawal really costs in retirement and whether a raise pushes a senior into the OAS clawback. The Canadian tax optimization guide turns the rates on this page into an account-by-account plan, and the related links below go deeper on each piece.