Federal · provincial · marginal rates
Canada Tax Brackets 2026
Federal and provincial income tax brackets for 2026, with the combined marginal rate for every province and territory.
Official 2026 rates, verified October 9, 2026
2026 federal tax brackets
| 2026 taxable income | Federal rate |
|---|---|
| First $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% |
Federal brackets rose 2% for 2026. The lowest rate is 14%, down from 15% before July 1, 2025. The federal basic personal amount is $16,452, reduced gradually to $14,829 between $181,440 and $258,482 of income, which adds about 0.29% to the 29% bracket.
2026 provincial tax brackets at a glance
| Province / territory | Lowest rate | Top rate | Brackets | Top combined rate |
|---|---|---|---|---|
| Alberta | 8% | 15% | 6 | 48.0% |
| British Columbia | 5.6% | 20.5% | 7 | 53.5% |
| Manitoba | 10.8% | 17.4% | 3 | 50.4% |
| New Brunswick | 9.4% | 19.5% | 4 | 52.5% |
| Newfoundland and Labrador | 8.7% | 21.8% | 8 | 54.8% |
| Nova Scotia | 8.79% | 21% | 5 | 54.0% |
| Ontario | 5.05% | 13.16% | 5 | 53.5% |
| Prince Edward Island | 9.5% | 20% | 6 | 53.0% |
| Quebec | 14% | 25.75% | 4 | 53.3% |
| Saskatchewan | 10.5% | 14.5% | 3 | 47.5% |
| Northwest Territories | 5.9% | 14.05% | 4 | 47.1% |
| Nunavut | 4% | 11.5% | 4 | 44.5% |
| Yukon | 6.4% | 15% | 5 | 48.0% |
Combined top rates include the 33% federal rate. Ontario's includes its 56% surtax; Quebec's reflects the 16.5% federal abatement.
Brackets and marginal rates by province
Tax brackets vs. your actual tax
Brackets show the rate on each slice of income, not the share of your income that goes to tax. Credits such as the basic personal amount and CPP and EI credits also lower what you owe. To see your real tax and take-home pay, use the income tax calculator.
Frequently asked questions
What are the federal tax brackets for 2026?
14% on the first $58,523 of taxable income, 20.5% from $58,523 to $117,045, 26% from $117,045 to $181,440, 29% from $181,440 to $258,482, and 33% on income over $258,482.
How do tax brackets work in Canada?
Each rate applies only to the income inside its bracket. Moving into a higher bracket raises the tax on the dollars above the threshold, not on your whole income. You pay federal and provincial tax separately, each with its own brackets, so your combined rate is the two added together.
What is my marginal tax rate?
It's the combined federal and provincial rate on your next dollar of income. Find your taxable income in your province's combined table. For example, someone in Ontario with $75,000 of taxable income pays 20.5% federal plus 9.15% Ontario, a 29.65% marginal rate.
Which province has the lowest income tax?
Nunavut has the lowest provincial rates (4% to 11.5%), followed by the Northwest Territories, Yukon, Alberta and BC at most income levels. Nova Scotia, Quebec and PEI tend to have the highest tax on middle incomes.
Were the 2026 brackets indexed for inflation?
Yes. Federal brackets and credits rose 2% for 2026. Most provinces index too, but Manitoba froze its brackets at 2024 levels, PEI does not fully index, and BC plans to pause indexation from 2027 to 2030.
All rates and amounts on this page are taken from official government sources, including the Canada Revenue Agency, Revenu Québec and provincial and territorial finance ministries. Last verified October 9, 2026.