Income Tax Brackets Canada 2026
The full income tax brackets Canada uses in 2026 — the five federal brackets plus every province and territory, including the mid-year changes in BC, PEI and Newfoundland and Labrador.
Last updated: July 2026 · Canada Revenue Agency · Revenu Québec · 2026 tax year
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How to Read This Table
Canada taxes personal income on a marginal scale, twice over: the federal government takes its slice using one set of brackets, and your province or territory takes a second slice using its own. Each rate applies only to the dollars inside its bracket — crossing into a higher bracket never shrinks your take-home pay. To estimate your total income tax, find your income in the federal table, then add your province’s table below it. Both layers are softened by a basic personal amount — income that is effectively tax-free — and the federal table already accounts for the “tax on this income” running total.
2026 Key Numbers
Federal basic personal amount: up to $16,452 · Bottom federal rate: 14% · Top federal rate: 33% from $258,482
On top: provincial tax (tables below) · CPP 5.95% + CPP2 4% · EI 1.63%
Federal Tax Brackets 2026
| Taxable Income | Marginal Rate | Tax on This Income |
|---|---|---|
| 0 – $58,523 | 14% | 14¢ for each $1 |
| $58,523 – $117,045 | 20.5% | $8,193 + 20.5¢ for each $1 over $58,523 |
| $117,045 – $181,440 | 26% | $20,190 + 26¢ for each $1 over $117,045 |
| $181,440 – $258,482 | 29% | $36,932 + 29¢ for each $1 over $181,440 |
| over $258,482 | 33% | $59,275 + 33¢ for each $1 over $258,482 |
Federal rates for the 2026 tax year from the Canada Revenue Agency. Before credits — the basic personal amount (up to $16,452, credited at 14%) makes roughly the first $16,000 of income effectively federal-tax-free for most workers. Excludes CPP, EI and provincial tax.
Found your bracket? Two things worth checking next
→ Your exact take-home pay — these brackets plus CPP, EI and your province’s credits, computed for your salary. → How income tax actually works — withholding, credits and your tax return, step by step.Provincial and Territorial Tax Brackets 2026
Your province’s tax is calculated on the same taxable income as federal tax, using the brackets below, and added on top. Each jurisdiction also has its own basic personal amount — noted under each table — which its lowest rate turns into a credit. Three provinces changed their rules mid-2026: British Columbia raised its bottom rate to 5.6%, Prince Edward Island added a 20% bracket above $200,000, and Newfoundland and Labrador raised its basic personal amount to $13,094 — all retroactive to 1 January, all reflected below.
Alberta
| Taxable income | Rate on that part |
|---|---|
| 0 – $61,200 | 8% |
| $61,200 – $154,259 | 10% |
| $154,259 – $185,111 | 12% |
| $185,111 – $246,813 | 13% |
| $246,813 – $370,220 | 14% |
| over $370,220 | 15% |
Basic personal amount: $22,769
British Columbia
| Taxable income | Rate on that part |
|---|---|
| 0 – $50,363 | 5.6% |
| $50,363 – $100,728 | 7.7% |
| $100,728 – $115,648 | 10.5% |
| $115,648 – $140,430 | 12.29% |
| $140,430 – $190,405 | 14.7% |
| $190,405 – $265,545 | 16.8% |
| over $265,545 | 20.5% |
Basic personal amount: $13,216
The 5.6% bottom rate is the new full-year 2026 rate (raised from 5.06% in the February 2026 budget). A low-income tax reduction of up to $690 applies below roughly $45,000.
Manitoba
| Taxable income | Rate on that part |
|---|---|
| 0 – $47,000 | 10.8% |
| $47,000 – $100,000 | 12.75% |
| over $100,000 | 17.4% |
Basic personal amount: $15,780
Bracket indexation is paused from the 2025 tax year, so thresholds stay at $47,000 / $100,000. The basic personal amount phases out between $200,000 and $400,000 of income.
New Brunswick
| Taxable income | Rate on that part |
|---|---|
| 0 – $52,333 | 9.4% |
| $52,333 – $104,666 | 14% |
| $104,666 – $193,861 | 16% |
| over $193,861 | 19.5% |
Basic personal amount: $13,664
Newfoundland and Labrador
| Taxable income | Rate on that part |
|---|---|
| 0 – $44,678 | 8.7% |
| $44,678 – $89,354 | 14.5% |
| $89,354 – $159,528 | 15.8% |
| $159,528 – $223,340 | 17.8% |
| $223,340 – $285,319 | 19.8% |
| $285,319 – $570,638 | 20.8% |
| $570,638 – $1,141,275 | 21.3% |
| over $1,141,275 | 21.8% |
Basic personal amount: $13,094
The basic personal amount was raised to $13,094 in April 2026, retroactive to 1 January.
Nova Scotia
| Taxable income | Rate on that part |
|---|---|
| 0 – $30,995 | 8.79% |
| $30,995 – $61,991 | 14.95% |
| $61,991 – $97,417 | 16.67% |
| $97,417 – $157,124 | 17.5% |
| over $157,124 | 21% |
Basic personal amount: $11,932
Northwest Territories
| Taxable income | Rate on that part |
|---|---|
| 0 – $53,003 | 5.9% |
| $53,003 – $106,009 | 8.6% |
| $106,009 – $172,346 | 12.2% |
| over $172,346 | 14.05% |
Basic personal amount: $18,198
Nunavut
| Taxable income | Rate on that part |
|---|---|
| 0 – $55,801 | 4% |
| $55,801 – $111,602 | 7% |
| $111,602 – $181,439 | 9% |
| over $181,439 | 11.5% |
Basic personal amount: $19,659
Ontario
| Taxable income | Rate on that part |
|---|---|
| 0 – $53,891 | 5.05% |
| $53,891 – $107,785 | 9.15% |
| $107,785 – $150,000 | 11.16% |
| $150,000 – $220,000 | 12.16% |
| over $220,000 | 13.16% |
Basic personal amount: $12,989
Ontario also applies a surtax (20% of provincial tax over $5,818 plus 36% over $7,446) and a health premium of up to $900 — both included in our net pay calculator.
Prince Edward Island
| Taxable income | Rate on that part |
|---|---|
| 0 – $33,928 | 9.5% |
| $33,928 – $65,820 | 13.47% |
| $65,820 – $106,890 | 16.6% |
| $106,890 – $142,520 | 17.62% |
| $142,520 – $200,000 | 19% |
| over $200,000 | 20% |
Basic personal amount: $15,000
The 20% bracket above $200,000 is new for 2026 (announced April 2026).
Quebec
| Taxable income | Rate on that part |
|---|---|
| 0 – $54,345 | 14% |
| $54,345 – $108,680 | 19% |
| $108,680 – $132,245 | 24% |
| over $132,245 | 25.75% |
Basic personal amount: $18,952
Quebec runs its own tax system (Revenu Québec) with a deduction for workers of up to $1,450; federal tax is reduced by the 16.5% Quebec abatement.
Saskatchewan
| Taxable income | Rate on that part |
|---|---|
| 0 – $54,532 | 10.5% |
| $54,532 – $155,805 | 12.5% |
| over $155,805 | 14.5% |
Basic personal amount: $20,381
Yukon
| Taxable income | Rate on that part |
|---|---|
| 0 – $58,523 | 6.4% |
| $58,523 – $117,045 | 9% |
| $117,045 – $181,440 | 10.9% |
| $181,440 – $500,000 | 12.8% |
| over $500,000 | 15% |
Basic personal amount: up to $16,452
Yukon mirrors the federal thresholds and basic personal amount (including its high-income phase-out).
Understanding Your Tax Bracket
Take a $60,000 salary in Ontario. Federally, the first $58,523 is taxed at 14% ($8,193) and the remaining $1,477 at 20.5% ($303) — $8,496 before credits; the basic personal amount then wipes out $2,303 of it. Ontario’s layer works the same way on its own brackets ($53,891 at 5.05%, the rest at 9.15%), softened by its own $12,989 amount. This is why a raise that “pushes you into a higher bracket” is always worth taking: only the raise is taxed at the new rate, never the salary you already had.
The difference between your marginal rate (what the next dollar pays — federal plus provincial, it can pass 45% in the top brackets) and your effective rate (what your whole income actually pays, usually far lower) is the single most misunderstood thing about Canadian tax. Our net pay calculator shows both layers computed exactly, along with CPP and EI.
Frequently Asked Questions
Why did my paycheque change in July 2026?
If you’re in BC, PEI or Newfoundland and Labrador, your province changed its 2026 taxes after the year started — so from July, employers withhold at a “catch-up” rate (BC withholds its bottom bracket at 6.14% for the rest of 2026, PEI’s new top slice at 21%) to make the full year come out right. The tables on this page show the true full-year rates; the catch-up washes out when you file your return.
Do these brackets include CPP and EI?
No. CPP contributions (5.95% between $3,500 and $74,600, plus CPP2 at 4% up to $85,000) and EI premiums (1.63% up to $68,900) are separate payroll deductions on top of income tax. They’re not taxes in the bracket sense — CPP builds your own pension entitlement — but they do reduce your take-home pay, and our calculator includes them.
Why do some sites show different Manitoba thresholds?
Manitoba paused the inflation-indexing of its bracket thresholds starting with the 2025 tax year, so its 2026 brackets remain $47,000 and $100,000 — the figures Manitoba Finance and the CRA’s payroll deductions formulas both use. Sites showing $47,564 / $101,200 have applied indexation Manitoba suspended. When in doubt, trust the province’s own published brackets.
Are the bracket thresholds the same every year?
Federally, thresholds rise with inflation each January (2% for 2026), which stops “bracket creep” — inflation quietly taxing you more. Most provinces index too, each at its own rate, but not all: Manitoba’s pause and PEI’s fixed thresholds mean pay rises there push more income into higher brackets over time. That’s why these tables are worth rechecking every year — we re-verify them against the CRA and each province monthly.
📋 Rates verified — Official sources: CRA — 2026 tax rates and brackets · CRA — T4127 Payroll Deductions Formulas · Revenu Québec — Income tax rates · Manitoba Finance
⚠️ This is general information, not financial, tax or legal advice. KnowMyGovt is an independent service with no affiliation with or endorsement by the Canada Revenue Agency, Revenu Québec or the Government of Canada, and is not responsible for decisions you make based on it.
