Income tax · Guide
Canada tax brackets 2026: federal and provincial rates
For 2026, the federal tax brackets are 14% on taxable income up to $58,523, 20.5% up to $117,045, 26% up to $181,440, 29% up to $258,482 and 33% above $258,482. The federal basic personal amount is up to $16,452, and the Canada employment amount is $1,501.
What are the 2026 federal tax brackets?
Each rate applies only to the part of your taxable income that falls inside its bracket. Moving up a bracket does not re-tax the earlier portions at the new rate.
| Taxable income | Federal rate |
|---|---|
| $0 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% |
A simple example
On $60,000 of taxable income, the first $58,523 is calculated at 14% and the remaining $1,477 at 20.5%. That gives $8,496.01 before federal credits and other adjustments. This is not the final tax bill.
Provincial and territorial tax brackets for 2026
Provincial or territorial tax is calculated separately and added to federal tax. The province that applies is generally the one where you lived on December 31. The table shows each jurisdiction’s lowest and highest 2026 rates; the calculator on our homepage applies every bracket.
| Province or territory | Lowest rate | Top rate | Top rate applies over |
|---|---|---|---|
| Alberta | 8% | 15% | $370,220 |
| British Columbia | 5.6% | 20.5% | $265,545 |
| Manitoba | 10.8% | 17.4% | $101,200 |
| New Brunswick | 9.4% | 19.5% | $193,861 |
| Newfoundland and Labrador | 8.7% | 21.8% | $1,141,275 |
| Northwest Territories | 5.9% | 14.05% | $172,346 |
| Nova Scotia | 8.79% | 21% | $157,124 |
| Nunavut | 4% | 11.5% | $181,439 |
| Ontario | 5.05% | 13.16% | $220,000 |
| Prince Edward Island | 9.5% | 20% | $200,000 |
| Saskatchewan | 10.5% | 14.5% | $155,805 |
| Yukon | 6.4% | 15% | $500,000 |
What is the basic personal amount for 2026?
The federal basic personal amount for 2026 is $16,452. For higher incomes it is gradually reduced, down to a minimum of $14,829. It is a non-refundable credit: it reduces tax, rather than being paid to you.
| Amount | 2026 value |
|---|---|
| Federal basic personal amount (maximum) | $16,452 |
| Federal basic personal amount (minimum) | $14,829 |
| Ontario basic personal amount | $12,989 |
| Canada employment amount (maximum) | $1,501 |
| Maximum federal credit from the Canada employment amount | $210.14 |
Ontario basic personal amount 2026
Ontario’s basic personal amount for 2026 is $12,989. It applies to Ontario tax, separately from the federal amount of $16,452.
Canada employment amount 2026
The Canada employment amount is $1,501 for 2026, or your employment income if that is lower. At the lowest federal rate of 14%, the maximum federal credit is $210.14.
What this means for you
Your marginal rate describes tax on an additional dollar. Your average rate describes tax across all your income. Provincial tax, credits, CPP and EI contributions and income-tested benefits also affect take-home pay.
Frequently asked questions
What are the federal tax brackets for 2026 in Canada?
14% up to $58,523; 20.5% up to $117,045; 26% up to $181,440; 29% up to $258,482; and 33% above $258,482.
Does moving into a higher bracket reduce my take-home pay?
No. The higher rate applies only to the income inside the higher bracket, so a raise always increases your after-tax income. Income-tested benefits can shrink, which is a separate effect.
What is the basic personal amount for 2026?
The federal basic personal amount is $16,452, reduced gradually to $14,829 for higher incomes. Ontario’s basic personal amount is $12,989.
What is the Canada employment amount for 2026?
$1,501, or your employment income if lower. It provides a non-refundable federal credit of up to $210.14.