Canada Income Tax Calculator (2026)

How Canadian income tax is calculated in 2026

Your income tax in Canada is the sum of two layers: federal tax, which is the same everywhere, and provincial or territorial tax, which varies by where you live on December 31. Both use progressive brackets, so only the income within each band is taxed at that band's rate.

For 2026, the federal brackets start at 14% on the first $58,523, then 20.5%, 26%, 29% and 33% on income above $258,482. Everyone gets the federal basic personal amount (up to $16,452) as a credit, which shelters that much income from federal tax. Each province applies its own brackets and its own basic personal amount on top.

CPP and EI

Two payroll items also come off your pay. CPP is 5.95% on pensionable earnings between $3,500 and $74,600 (max $4,230.45), with a small CPP2 layer above that. EI is 1.64% on earnings up to $68,900 (max $1,123.07). These aren't income tax, but they reduce take-home pay, so we show them here.

Marginal vs average rate

The calculator shows both. Your marginal rate is what you'd pay on one more dollar; your average (effective) rate is total tax over total income, which is always lower. If that distinction is fuzzy, our guide on marginal vs effective tax rates clears it up.

A note on accuracy

This is an estimate using 2026 federal and provincial schedules and the basic personal amount. It doesn't include every credit (such as dependants, tuition, or medical) or other income types. For Quebec, the provincial figure is an estimate only, as Quebec administers its own tax system. Always confirm with a tax professional or the CRA for filing.

This calculator provides estimates for general information only and is not financial or tax advice. See our disclaimer.