Tax Brackets Canada 2026
Federal tax brackets 2026
| Taxable income | Rate | Tax on a full band |
|---|---|---|
| Up to $58,523 | 14% | $8,193.22 |
| $58,523 – $117,045 | 20.5% | $12,000.01 |
| $117,045 – $181,440 | 26% | $16,742.70 |
| $181,440 – $258,482 | 29% | $22,342.18 |
| Over $258,482 | 33% | No limit |
The lowest rate is 14% for the first full year — it was 15% before July 2025 and 14.5% for the 2025 tax year as a whole (Bill C-4, Royal Assent 12 March 2026). All brackets were indexed by 2.0% for 2026. Each rate applies only to the slice of income inside that band: earning $60,000 does not mean 20.5% tax on the whole $60,000 — only on the $1,477 above $58,523.
The basic personal amount — and its phase-out
The basic personal amount for 2026 is $16,452 at the lowest rate, a credit of $2,303.28. It is the amount you can earn federally tax-free. But it phases out at high incomes: the full $16,452 applies up to net income of $181,440, then falls linearly to a minimum of $14,829 at $258,482 and above. Employees also get the Canada employment amount of $1,501 (a $210.14 credit). Base CPP contributions and EI premiums are claimed as credits too; the additional 1% CPP contribution is instead deducted from taxable income.
CPP and EI 2026
| 2026 | |
|---|---|
| CPP maximum pensionable earnings (YMPE) | $74,600 |
| CPP employee rate | 5.95% (max $4,230.45) |
| CPP2 (earnings $74,600 – $85,000) | 4% (max $416) |
| Maximum total employee CPP + CPP2 | $4,646.45 |
| EI maximum insurable earnings | $68,900 |
| EI employee rate (outside Quebec) | 1.63% (max $1,123.07) |
| EI employee rate (Quebec) | 1.30% (max $895.70) |
CPP and EI are capped: once your earnings pass the ceilings, you stop paying them, which is why take-home pay rises faster than gross pay at high incomes. Quebec workers pay QPP at 6.30% (maximum $4,479.30) plus QPIP of 0.430% instead.
How federal and provincial tax combine
Your total tax is federal tax plus provincial tax, and the two are calculated separately on the same taxable income. The combined marginal rate — the tax on your next dollar — is what matters for decisions like RRSP contributions or overtime. At $70,000 in Ontario it is 29.65% (20.5% federal + 9.15% Ontario). At $100,000 in Alberta it is 30.5%. At $150,000 in Quebec it is over 44%. The Take Home Pay Calculator Canada shows the combined figure for your province and salary.
Provincial brackets at a glance
| Province | First rate | Top rate | Basic personal amount |
|---|---|---|---|
| Ontario | 5.05% | 13.16% | $12,989 |
| Alberta | 8% | 15% | $22,769 |
| Quebec | 14% | 25.75% | $18,952 |
| British Columbia | 5.60% | 20.50% | $13,216 |
Full guides: Ontario Tax Brackets 2026, Alberta Tax Brackets 2026 and Quebec Tax Brackets 2026.
Related: Take Home Pay Calculator Canada · UK Take Home Pay Calculator
Sources: Canada Revenue Agency, “Current year tax rates and income brackets (2026)” and Guide T4032 (Jan 2026); CRA, “CPP contributions for 2026”; Employment and Social Development Canada, “2026 maximum insurable earnings and EI premium rates”; Department of Finance, “Report on reducing the lowest marginal personal income tax rate” (June 2026); Government of British Columbia, “Personal income tax rates”. Checked 13 November 2026.