Updated September 24, 2026. Canadians pay two layers of income tax: federal tax, which is the same everywhere, and provincial or territorial tax, which depends on where you lived on December 31. This page lists every 2026 bracket as published by the Canada Revenue Agency. We update it each November when the indexed brackets for the next year are released.
Quick Answer
In 2026 the federal rates are 14%, 20.5%, 26%, 29% and 33%, starting at income over $58,523 for the second bracket. Provincial rates run from 4% (Nunavut’s lowest bracket) to 21.8% (Newfoundland and Labrador’s top bracket). Brackets are marginal: a higher rate applies only to the dollars inside that bracket, never to your whole income.
Federal Tax Brackets 2026
| Taxable income | Rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523.01 to $117,045 | 20.5% |
| $117,045.01 to $181,440 | 26% |
| $181,440.01 to $258,482 | 29% |
| Over $258,482 | 33% |
The lowest federal rate is 14% for 2026, down from 15% before July 2025.
Provincial and Territorial Tax Brackets 2026
| Province / territory | 2026 brackets and rates |
|---|---|
| Ontario | 5.05% up to $53,891 · 9.15% to $107,785 · 11.16% to $150,000 · 12.16% to $220,000 · 13.16% over $220,000 (plus Ontario surtax and health premium) |
| British Columbia | 5.6% up to $50,363 · 7.7% to $100,728 · 10.5% to $115,648 · 12.29% to $140,430 · 14.7% to $190,405 · 16.8% to $265,545 · 20.5% over $265,545 |
| Alberta | 8% up to $61,200 · 10% to $154,259 · 12% to $185,111 · 13% to $246,813 · 14% to $370,220 · 15% over $370,220 |
| Saskatchewan | 10.5% up to $54,532 · 12.5% to $155,805 · 14.5% over $155,805 |
| Manitoba | 10.8% up to $47,564 · 12.75% to $101,200 · 17.4% over $101,200 |
| Quebec | Quebec residents file a separate provincial return with Revenu Québec, which publishes its own brackets; they also receive a 16.5% reduction of basic federal tax (the Quebec abatement). |
| New Brunswick | 9.4% up to $52,333 · 14% to $104,666 · 16% to $193,861 · 19.5% over $193,861 |
| Nova Scotia | 8.79% up to $30,995 · 14.95% to $61,991 · 16.67% to $97,417 · 17.5% to $157,124 · 21% over $157,124 |
| Prince Edward Island | 9.5% up to $33,928 · 13.47% to $65,820 · 16.6% to $106,890 · 17.62% to $142,520 · 19% to $200,000 · 20% over $200,000 |
| Newfoundland and Labrador | 8.7% up to $44,678 · 14.5% to $89,354 · 15.8% to $159,528 · 17.8% to $223,340 · 19.8% to $285,319 · 20.8% to $570,638 · 21.3% to $1,141,275 · 21.8% over $1,141,275 |
| Yukon | 6.4% up to $58,523 · 9% to $117,045 · 10.9% to $181,440 · 12.8% to $500,000 · 15% over $500,000 |
| Northwest Territories | 5.9% up to $53,003 · 8.6% to $106,009 · 12.2% to $172,346 · 14.05% over $172,346 |
| Nunavut | 4% up to $55,801 · 7% to $111,602 · 9% to $181,439 · 11.5% over $181,439 |
How Marginal Brackets Work
Moving into a higher bracket never reduces your take-home pay. If you earn $60,000 in Ontario, only the $1,477 above $58,523 is taxed at the 20.5% federal rate, and only the income above $53,891 at Ontario’s 9.15% rate. Everything below stays at the lower rates. Tax credits such as the basic personal amount then reduce the tax calculated on those brackets.
To see your actual take-home pay after federal and provincial tax, CPP and EI, use the Canada salary calculator, which applies these 2026 brackets.
Which Province’s Rates Apply to You
- You pay the rates of the province you lived in on December 31, for the whole year — even if you moved in November. See moving provinces as a newcomer.
- Your employer may deduct for the wrong province if your payroll address is out of date. The difference is settled when you file, which can mean a surprise balance owing.
- Two jobs? Each employer withholds as if it were your only job, which often leaves tax owing in April. See two jobs and the TD1 form.
Newcomers: Your First Year
In the year you become a resident, Canada taxes your world income only from the date you arrive. The brackets above apply to that income, and some credits such as the basic personal amount are prorated for the part of the year you lived here. The details are in our first-time tax filing guide.
What Changes in 2027
Federal brackets and most provincial brackets are indexed to inflation each year. The CRA publishes the 2027 federal thresholds in the fall, usually in November, and we will add them here as soon as they are released.
