Federal Tax Brackets 2026
Canada's federal income tax brackets apply to all residents, regardless of province. Provincial rates are added on top.
| Taxable Income | Federal Rate | Tax on Bracket |
|---|---|---|
| $0 – $55,867 | 15% | Up to $8,380 |
| $55,867 – $111,733 | 20.5% | Up to $11,453 |
| $111,733 – $154,906 | 26% | Up to $11,225 |
| $154,906 – $220,000 | 29% | Up to $18,878 |
| Over $220,000 | 33% | — |
Federal Basic Personal Amount (BPA): $15,705 — generates a credit of $15,705 × 15% = $2,355.75
Provincial Tax Brackets 2026
Ontario — BPA: $11,865 · Top Combined Rate: ~53.53%
| Taxable Income | Provincial Rate | Top Combined Rate |
|---|---|---|
| $0 – $51,446 | 5.05% | 20.05% |
| $51,446 – $102,894 | 9.15% | 29.65% |
| $102,894 – $150,000 | 11.16% | 43.41% |
| $150,000 – $220,000 | 12.16% | 46.41% |
| Over $220,000 | 13.16% | 53.53% |
Ontario also levies a surtax of 20% on provincial tax above $5,315 and an additional 36% on provincial tax above $6,802.
British Columbia — BPA: $11,981 · Top Combined Rate: ~53.50%
| Taxable Income | Provincial Rate | Top Combined Rate |
|---|---|---|
| $0 – $45,654 | 5.06% | 20.06% |
| $45,654 – $91,310 | 7.70% | 27.20% |
| $91,310 – $104,835 | 10.50% | 33.00% |
| $104,835 – $127,299 | 12.29% | 38.29% |
| $127,299 – $172,602 | 14.70% | 43.70% |
| $172,602 – $240,716 | 16.80% | 49.80% |
| Over $240,716 | 20.50% | 53.50% |
Alberta — BPA: $21,003 · Top Combined Rate: ~48%
| Taxable Income | Provincial Rate | Top Combined Rate |
|---|---|---|
| $0 – $148,269 | 10% | 25% |
| $148,269 – $177,922 | 12% | 38% |
| $177,922 – $237,230 | 13% | 42% |
| $237,230 – $355,845 | 14% | 47% |
| Over $355,845 | 15% | 48% |
Alberta has the highest BPA in Canada ($21,003) and no provincial sales tax (PST).
Québec — BPA: $17,183 · Top Combined Rate: ~53.31%
| Taxable Income | Provincial Rate | Top Combined Rate |
|---|---|---|
| $0 – $51,780 | 14% | 27.53% |
| $51,780 – $103,545 | 19% | 37.12% |
| $103,545 – $126,000 | 24% | 49.97% |
| Over $126,000 | 25.75% | 53.31% |
Québec residents receive a 16.5% federal abatement on their federal tax, and file two separate returns: federal (T1) and provincial (TP-1 to Revenu Québec).
Saskatchewan — BPA: $17,661 · Top Combined Rate: ~47.50%
| Taxable Income | Provincial Rate | Top Combined Rate |
|---|---|---|
| $0 – $49,720 | 10.5% | 25.5% |
| $49,720 – $142,058 | 12.5% | 34.5% |
| Over $142,058 | 14.5% | 47.5% |
Manitoba — BPA: $15,780 · Top Combined Rate: ~50.4%
| Taxable Income | Provincial Rate | Top Combined Rate |
|---|---|---|
| $0 – $36,842 | 10.8% | 25.8% |
| $36,842 – $79,625 | 12.75% | 33.25% |
| Over $79,625 | 17.4% | 50.4% |
Nova Scotia — BPA: $8,481 · Top Combined Rate: ~54%
| Taxable Income | Provincial Rate | Top Combined Rate |
|---|---|---|
| $0 – $29,590 | 8.79% | 23.79% |
| $29,590 – $59,180 | 14.95% | 30.45% |
| $59,180 – $93,000 | 16.67% | 42.67% |
| $93,000 – $150,000 | 17.50% | 46.50% |
| Over $150,000 | 21% | 54% |
Nova Scotia has the lowest Basic Personal Amount in Canada ($8,481).
New Brunswick — BPA: $12,458 · Top Combined Rate: ~52.5%
| Taxable Income | Provincial Rate | Top Combined Rate |
|---|---|---|
| $0 – $44,887 | 9.4% | 24.4% |
| $44,887 – $89,775 | 14% | 34.5% |
| $89,775 – $145,955 | 16% | 45% |
| Over $145,955 | 19.5% | 52.5% |
Newfoundland & Labrador — BPA: $10,818 · Top Combined Rate: ~54.8%
| Taxable Income | Provincial Rate | Top Combined Rate |
|---|---|---|
| $0 – $43,198 | 8.7% | 23.7% |
| $43,198 – $86,395 | 14.5% | 35% |
| $86,395 – $154,244 | 15.8% | 41.8% |
| $154,244 – $215,943 | 17.8% | 46.8% |
| $215,943 – $275,870 | 19.8% | 52.8% |
| Over $275,870 | 20.8% | 54.8% |
Newfoundland & Labrador has the highest top combined tax rate in Canada at 54.8%.
Prince Edward Island — BPA: $12,000 · Top Combined Rate: ~51.37%
| Taxable Income | Provincial Rate | Top Combined Rate |
|---|---|---|
| $0 – $32,656 | 9.8% | 24.8% |
| $32,656 – $64,313 | 13.8% | 34.3% |
| $64,313 – $105,000 | 16.7% | 45.7% |
| $105,000 – $140,000 | 18% | 47% |
| Over $140,000 | 18.5% | 51.5% |
PEI levies a 10% provincial surtax on PEI tax exceeding $12,000.
Combined rates shown = federal + provincial. Top federal rate is 33%. Rates are for 2026 tax year.
Basic Personal Amounts by Province — 2026
The Basic Personal Amount (BPA) is a non-refundable tax credit that every taxpayer can claim. A higher BPA means more income is sheltered from tax.
| Province | BPA 2026 | Provincial Credit (BPA × bottom rate) |
|---|---|---|
| Alberta | $21,003 | $2,100.30 (10%) |
| Saskatchewan | $17,661 | $1,854.41 (10.5%) |
| Québec | $17,183 | $2,405.62 (14%) |
| Manitoba | $15,780 | $1,704.24 (10.8%) |
| Federal | $15,705 | $2,355.75 (15%) |
| New Brunswick | $12,458 | $1,171.05 (9.4%) |
| Prince Edward Island | $12,000 | $1,176.00 (9.8%) |
| British Columbia | $11,981 | $606.24 (5.06%) |
| Ontario | $11,865 | $599.18 (5.05%) |
| Newfoundland & Labrador | $10,818 | $941.17 (8.7%) |
| Nova Scotia | $8,481 | $745.48 (8.79%) |
2026 Tax Brackets — FAQ
What is a marginal tax rate vs effective tax rate?
Your marginal rate is the rate you pay on the next dollar of income — the rate of your highest bracket. Your effective rate is total tax paid divided by total income. Because Canada uses progressive brackets, your effective rate is always lower than your marginal rate. For example, someone earning $100,000 in Ontario has a marginal rate of ~29.65% but an effective rate closer to ~22%.
When do Canada's 2026 tax brackets apply?
The 2026 federal and provincial tax brackets apply to income earned from January 1 to December 31, 2026. You report this income on your T1 return due April 30, 2025 (June 15 for self-employed individuals). Brackets are indexed to inflation each year by the CRA.
How are federal and provincial tax brackets combined?
Federal and provincial taxes are calculated separately and then added together. The federal rate and provincial rate are both applied to your taxable income, and the total is your combined rate. For example, a $60,000 income in Ontario is taxed at 20.5% federal + 9.15% provincial = 29.65% combined marginal rate on income above $55,867.
Which province has the lowest income tax in Canada?
Alberta has the lowest income tax for most income levels. It has the highest BPA ($21,003), a flat first-bracket rate of 10% on income up to $148,269, and a top combined rate of ~48%. Alberta also has no provincial sales tax (no PST). Calculate Alberta income tax here.