Income tax brackets in Canada (2026)
Having a relatively clear picture of your expected tax bill before the calendar year ends can help you take advantage of last-minute tax-planning opportunities. Strategies such as contributing more to your registered retirement savings plan (RRSP) or first home savings account (FHSA), or making a meaningful donation to a deserving charity sooner rather than later can reduce the tax you owe or increase your refund.
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Estimating how much tax you’ll owe on your 2025 income starts with understanding the federal and provincial or territorial tax brackets that apply to you.
How do tax brackets work in Canada?
Canada uses a progressive income tax system, meaning the tax rate you pay increases as your income rises. Instead of taxing your entire income at a single rate, income is divided into ranges (tax brackets) with higher rates applying only to the portion of income that falls into each successive bracket.
In practical terms, earning more money does not mean you lose take-home pay by moving into a higher tax bracket. Everyone pays the same lowest tax rate on the first portion of their income, regardless of how much they earn overall. As income rises, and crosses bracket thresholds, only the additional dollars earned above each threshold are taxed at higher rates.
The highest tax bracket you reach determines your marginal tax rate. That’s the rate applied to your last dollar of income. This rate is often cited when discussing tax planning, but it’s a bit different from average tax rate, which is the total tax you paid divided by your total income. For most Canadians, the average rate is significantly lower than their marginal rate.
To illustrate how moving into a higher bracket works, consider average earnings. As of October 2025, the average weekly wage in Canada was $1,312, according to Statistics Canada. Over a full year, that translates to an annual income of approximately $68,224.
At that income level, a taxpayer would fall into the second federal tax bracket. They would pay 14.5% on the first $57,375 of income, and 20.5% on the remaining $10,849 earned above that threshold.
This results in approximately $10,543 in federal income tax payable before credits and deductions—$8,319 from the first bracket and $2,224 from the second. Importantly, only the income earned above $57,375 is taxed at the higher rate, not the entire salary.
Find your Canadian federal, provincial, and territorial tax brackets
- Canadian federal tax brackets
- Alberta tax brackets
- British Columbia tax brackets
- Manitoba tax brackets
- New Brunswick tax brackets
- Newfoundland tax brackets
- Northwest Territories tax brackets
- Nova Scotia tax brackets
- Nunavut tax brackets
- Ontario tax brackets
- Prince Edward Island tax brackets
- Quebec tax brackets
- Saskatchewan tax brackets
- Yukon tax brackets
Income Tax Guide for Canadians
Deadlines, tax tips and more
What are the federal tax brackets in Canada?
At the federal level, Canada currently has five income tax brackets, each with its own rate.
What are the federal tax brackets in Canada for 2025 income?
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum total tax |
|---|---|---|---|---|
| Up to $57,375 | The first $57,375 | 14.5%* | $8,319.38 | $8,319.38 |
| $57,375 to $114,750 | The next $57,375 | 20.5% | $11,761.88 | $20,081.26 ($8,319.38 + $11,761.88) |
| $114,750 to $177,882 | The next $63,132 | 26% | $16,414.32 | $36,495.58 ($20,081.26 + $16,414.32) |
| $177,882 to $253,414 | The next $75,532 | 29% | $21,904.28 | $58,399.86 ($36,495.58 + $21,904.28) |
| Over $253,414 | Over $253,414 | 33% | n/a | n/a |
How to use the federal tax bracket table
To use the table above, identify the tiers your total annual income falls into. Next, subtract the minimum dollar value of that range from your annual income. Multiply the resulting amount by the corresponding tax rate. Lastly, add the maximum total tax from the preceding bracket to estimate your federal taxes for the year 2025.
Here’s an example of how you would calculate your federal taxes, based on annual taxable income of $60,000 in 2025.
- Identify the appropriate tier: The income amount falls within the second tier, which covers earnings from $57,375 to $114,750.
- Calculate the amount within the tier: Subtract the lower boundary of that range from your annual income: $60,000 – $57,375 = $2,625.
- Determine the tax rate: For the second tier, the tax rate is 20.5%.
- Calculate the tax amount for this tier: Multiply the amount within the tier by the tax rate: $2,625 x 0.205 = $538.13.
- Estimate your total federal taxes: To estimate your total federal tax liability for 2025, add this tier’s tax amount to the previous tier’s total tax amount, which would be $8,319.38 (from the first tier) plus $538.13, resulting in $8,857.51 in taxes payable.
A note on deductions: These taxable income calculations have yet to take into account potential deductions that can lower your taxable income, such as the basic personal tax credit ($16,129 for 2025), RRSP contributions, and other deductions. Canadian tax brackets serve as a tool for getting an estimate of your federal tax liability, but the precise amount will only be determined when you complete your income tax return for the year.
How tax brackets work for Canadian provinces and territories
Canadians pay income tax to two levels of government because different responsibilities are divided between them. Provinces and territories administer services like healthcare and education, while the federal government is responsible for national defence and federal law enforcement, including the Canadian Armed Forces and the RCMP. Income taxes collected at each level help fund these services. Municipal governments also collect taxes, but these are typically property-based rather than deducted from income.
Because income tax ranges and rates can change yearly, it’s important to stay up to date on which bracket applies to you. Keep in mind that even if tax rates remain consistent, income ranges are typically adjusted annually to account for inflation.
To estimate your provincial or territorial tax liability, follow similar steps to those outlined above for the federal tax brackets.
First, find the tax bracket table for the province or territory where you resided on December 31, 2025. Then, locate your taxable annual income within that table. If your income falls entirely within the first tax bracket, you can estimate your provincial or territorial tax by multiplying your income by the lowest applicable tax rate.
If your income exceeds the first bracket, the calculation becomes marginal. Subtract the lower income threshold of your tax bracket from your total taxable income, then multiply the remaining amount by the tax rate for that bracket. Finally, add the maximum tax payable from all lower brackets to estimate your total provincial or territorial income tax before credits and deductions.
This calculation estimates tax before non-refundable tax credits and deductions are applied. Some provinces also levy surtaxes on higher levels of provincial tax payable, which can increase the final amount owed and are applied after basic tax is calculated. These surtaxes are explained further below.
The figures below show tax payable before non-refundable credits, surtaxes, and provincial reductions are applied.
Here are the tax brackets for all the provinces and territories in Canada for your 2025 income:
- Alberta tax brackets
- British Columbia tax brackets
- Manitoba tax brackets
- New Brunswick tax brackets
- Newfoundland tax brackets
- Northwest Territories tax brackets
- Nova Scotia tax brackets
- Nunavut tax brackets
- Ontario tax brackets
- Prince Edward Island tax brackets
- Quebec tax brackets
- Saskatchewan tax brackets
- Yukon tax brackets
Alberta tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum total tax |
|---|---|---|---|---|
| Up to $60,000 | The first $60,000 | 8% | $4,800 | $4,800 |
| $60,000 to $151,234 | The next $91,234 | 10% | $9,123.40 | $13,923.40 ($4,800 + $9,123.40) |
| $151,234 to $181,481 | The next $30,247 | 12% | $3,629.64 | $ 17,553.04 ($13,923.40 + $3,629.64) |
| $181,481 to $241,974 | The next $60,493 | 13% | $7,864.09 | $ 25,417.13 ($17,553.04 + $7,864.09) |
| $241,974 to $362,961 | The next $120,987 | 14% | $16,938.18 | $42,355.31 ($25,417.13 + $16,938.18) |
| More than $362,961 | Over $362,961 | 15% | n/a | n/a |
British Columbia tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum total tax |
|---|---|---|---|---|
| Up to $49,279 | The first $49,279 | 5.06% | $2,493.52 | $2,493.52 |
| $49,279 to $98,560 | The next $49,281 | 7.7% | $3,794.64 | $6,288.16($3,794.64 + $2,493.52) |
| $98,560 to $113,158 | The next $14,598 | 10.5% | $1,532.79 | $7,820.95($6,288.16 + $1,532.79) |
| $113,158 to $137,407 | The next $24,249 | 12.29% | $2,980.20 | $10,801.15($7,820.95 + $2,980.20) |
| $137,407 to $186,306 | The next $48,899 | 14.7% | $7,188.15 | $17,989.30 ($7,188.15 + $10,801.15) |
| $186,306 to $259,829 | The next $73,523 | 16.8% | $12,351.86 | $30,341.16($17,989.30 + $12,351.86) |
| More than $259,829 | Over $259,829 | 20.5% | n/a | n/a |
Manitoba tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum total tax |
|---|---|---|---|---|
| Up to $47,564 | The first $47,564 | 10.8% | $5,076 | $5,136 |
| $47,654 to $101,200 | The next $53,546 | 12.75% | $6,827.15 | $11,963.15 ($5,136 + 6,827.15) |
| More than $101,200 | Over $101,200 | 17.4% | n/a | n/a |
New Brunswick tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum total tax |
|---|---|---|---|---|
| Up to $51,305 | The first $51,306 | 9.4% | $4,822.76 | $4,822.76 |
| $51,306 up to $102,614 | The next $51,308 | 14% | $7,183.12 | $12,005.88 ($7,183.12 + $4,822,76) |
| $102,614 to $190,060 | The next $87,446 | 16% | $13,991.36 | $25,997.24 ($13,991.36 + $12,005.88) |
| More than $190,060 | Over $190.060 | 19.5% | n/a | n/a |
Newfoundland and Labrador tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $44,192 | The first $44,192 | 8.7% | $3,844.70 | $3,844.70 |
| $44,192 to $88,382 | The next $44,190 | 14.5% | $6,407.55 | $10,252.25 ($6,407.55 + $3,844.70) |
| $88,382 to $157,792 | The next $69,410 | 15.8% | $10,966.78 | $21,219.03 ($10,966.78 + $10,252.25) |
| $157,792 to $220,910 | The next $63,118 | 17.8% | $11,235 | $32,453.03 ($11,235 + $21,219.03) |
| $220,910 to $282,214 | The next $61,304 | 19.8% | $11,235 | $43,688.03 ($32,453.03 +$11,235) |
| $282,214 to $564,429 | The next $282,215 | 20.8% | $58,700 | $102,388 ($43,688 + $58,700) |
| $564,429 up to $1,128,858 | The next $564,429 | 21.3% | $120,223.37 | $222,611.37 ($120,223.37 + $102,388) |
| More than $1,128,858 | Over $1,128,858 | 21.8% | n/a | n/a |
Northwest Territories tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $51,964 | The first $51,964 | 5.9% | $3,065.87 | $3,065.87 |
| $51,964 to $103,930 | The next $50,601 | 8.6% | $51,966 | $55,031.87 ($51,966 + $3,065.87 ) |
| $103,930 to $168,967 | The next $65,037 | 12.2% | $7,934.51 | $62,966.38 ($55,031.87 + $7,934.51) |
| More than $168,967 |
Over $168,967 |
14.05% | n/a | n/a |
Nova Scotia tax brackets 2025
| Annual income (Taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum |
|---|---|---|---|---|
| Up to $30,507 | The first $30,507 | 8.79% | $2,681.56 | $2,681.56 |
| $30,507 to $61,015 | The next $30,508 | 14.95% | $4,545.69 | $7,227.25 ($4545.69 + $2,681.56) |
| $61,015 to $95,883 | The next $34,868 | 16.67% | $5,812.49 | $13,039.74($7,227.25 + $5,812.49) |
| $95,883 to $154,650 | The next $58,767 | 17.5% | $10,284.22 | $23,323.96 ($10,284.22 + $13,039.74) |
| More than $154,650 | Over $154,650 | 21% | n/a | n/a |
Nunavut tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $54,707 | The first $54,707 | 4% | $2,188.28 | $2,188.28 |
| $54,707 up to $109,413 | The next $54,706 | 7% | $3,829.42 | $6,017.70 ($2,188.28 + $3,829.42) |
| $109,413 to $177,881 | The next $68,468 | 9% | $6,162.12 | $12,179.82 ($6,017.70 + $6,162.12) |
| More than $177,881 | Over $177,881 | 11.5% | n/a | n/a |
Ontario tax brackets 2025
| Annual income (taxable) | Tax Brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $52,886 | The first $52,886 | 5.05% | $2,670.74 | $2,670.74 |
| $52,886 to $105,775 | The next $52,889 | 9.15% | $4,839.34 | $7,510.08($4,839.34 + $2,670.74) |
| $105,775 up to $150,000 | The next $44,225 | 11.16% | $4,935.51 | $12,445.59($7,510.08 + $4,935.51) |
| $150,000 up to $220,000 | The next $70,000 | 12.16% | $8,512 | $20,957.59 ($12,445.59 + $8,512) |
| More than $220,000 | Over $220,000 | 13.16% | n/a | n/a |
Ontario surtax: In addition to the rates above, Ontario applies a provincial surtax to higher-income earners. The surtax is calculated on Ontario tax payable, not on income, and can increase the effective provincial tax rate once basic Ontario tax exceeds certain thresholds.
Prince Edward Island tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $33,328 | The first $33,328 | 9.5% | $3,166.16 | $3,166.16 |
| $33,328 to $64,656 | The next $31,328 | 13.47% | $4,219.88 | $7,386.04($4,219.88 +$3,166.16) |
| $64,656 to $105,000 | The next $40,344 | 16.6% | $6,697.10 | $14,083.14($6,697.10 + $7,386.04) |
| $105,000 to $140,000 | The next $35,000 | 17.62% | $6,167 | $20,250.14($14,083.14 + $6,167) |
| More than $140,000 | Over $140,000 | 19% | n/a | n/a |
Prince Edward Island surtax: In addition to the rates above, PEI applies a provincial surtax based on provincial tax payable, not income. The surtax increases the effective provincial tax rate for higher-income earners once basic PEI tax exceeds certain thresholds.
Quebec tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $53,255 | The first $53,255 | 14% | $7,455.7 | $7,455.7 |
| $53,255 to $106,495 | The next $53,240 | 19% | $10,115.6 | $17,571.3 ($10,115.6 + $7,455.7) |
| $106,495 to $129,590 | The next $23,095 | 24% | $5,542.8 | $23,114.1 ($17,571.3 + $5,542.8) |
| More than $129,590 | Over $129,590 | 25.75% | n/a | n/a |
Quebec tax note: Quebec does not apply a provincial surtax. Instead, Quebec residents receive a federal tax abatement, which reduces their federal income tax to reflect Quebec’s separate tax system.
Saskatchewan tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $53,463 | The first $53,463 | 10.5% | $5,613.61 | $5,613.61 |
| $53,463 to $152,750 | The next $99,287 | 12.5% | $99,287 | $104,900.61 ($99,287 + $5,613.61) |
| More than $152,750 | Over $152,750 | 14.5% | n/a | n/a |
Yukon tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $57,375 | The first $57,375 | 6.4% | $3,672 | $3,672 |
| $57,375 up to $114,750 | The next $57,375 | 9% | $5,163.75 | $8,935.75 ($5,163.75 + $3,672) |
| $114,750 up to $177,882 | The next $63,132 | 10.9% | $6,881.38 | $15,817.13 ($6,881.38 + $8,935.75) |
| $177,882 up to $500,000 | The next $322,118 | 12.8% | $38,654.16 | $54,471,29 ($38,654.16 + $15,817.13) |
| More than $500,000 | Over $500,000 | 15% | n/a | n/a |
How to lower your income tax
Understanding tax brackets can help you figure out how much tax you’ll owe and if you’re due for a refund. That way, you can be prepared ahead of the April 30, 2026 tax payment deadline and avoid having to pay interest and penalties on overdue taxes.
To lower your tax bill, consider a proactive approach, like making monthly contributions to your RRSP. You have until March 2, 2026, to make contributions that qualify for a deduction on your taxes.
To estimate tax savings from RRSP contributions, determine the tax rate as explained above, then multiply your total contribution by that rate for the approximate tax reduction or potential refund.
FAQs
Generally, surtaxes are paid by higher-income earners in provinces that use them. A surtax is an additional charge calculated as a percentage of your basic provincial tax payable—it is not a separate tax on your income.
Ontario and Prince Edward Island have surtaxes, structured differently from one another. That said, both are based on tax payable amounts, not income. You only pay a surtax if your provincial tax payable exceeds a certain threshold.
It depends on where you live, but for most Canadians, take-home pay on a $100,000 salary is typically $70,000–$75,000. This is assuming the earner is a single filer with no major deductions, using an average of provincial tax rates.
No, most Canadians do not pay 40% in taxes. Canada uses a progressive tax system, meaning only the top portion of income is taxed at higher rates. Combined federal and provincial top marginal rates may range from 47–54% on paper; however, you only pay those rates on income above very high thresholds.
Most Canadians’ effective tax rate is around roughly 20–30%.
The Quebec tax abatement is a reduction on federal tax of 16.5%, applied to basic federal tax or minimum tax (whichever is greater) for residents of Quebec. This abatement exists due to an arrangement between the federal government of Canada and Quebec, recognizing that Quebec collects its own provincial taxes to fund services which are normally delivered by the federal government.
Compare the best RRSP rates in Canada
Read more about taxes:
- How to fill out a personal tax return
- How to file your taxes online in Canada
- Can you file multiple years of income taxes together in Canada?
- How to avoid tax on severance pay in Canada
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