Canada Tax Brackets 2026

For 2026 the federal rates are 14% on $0 to $58,523, 20.5% on $58,523 to $117,045, 26% on $117,045 to $181,440, 29% on $181,440 to $258,482, 33% on over $258,482. Each rate applies only to the portion of taxable income inside its own band, not to your whole income. The federal Basic Personal Amount is $16,452, credited at 14% and tapering to $14,829 for top-bracket earners.

No — they stack. You pay federal tax on your taxable income using the federal table, and then provincial or territorial tax on the same income using your province's own table, so your combined marginal rate is the sum of the two. Residency on 31 December of the tax year decides which provincial table applies, not where you earned the income. Quebec is the exception in one respect: it collects its own income tax through Revenu Québec and Quebec residents receive a 16.5% federal abatement.

Ontario's 2026 rates run from 5.05% to 13.16% across 5 bands: 5.05% on $0 to $53,891, 9.15% on $53,891 to $107,785, 11.16% on $107,785 to $150,000, 12.16% on $150,000 to $220,000, 13.16% on over $220,000. Its Basic Personal Amount is $12,989. These are provincial rates only — federal tax applies on top.

The Basic Personal Amount (BPA) is the income you can earn before paying tax at all. It works as a non-refundable credit rather than a deduction: the amount is multiplied by the lowest rate and subtracted from tax owing. There is a federal BPA ($16,452 for 2026) and a separate provincial one, and they differ widely — from $11,932 to $22,769 across the provinces and territories in 2026.

Not mid-year. Your province of residence on 31 December of the tax year governs the whole year, so a move in, say, August is taxed entirely under the new province's table for that year. Payroll withholding switches sooner than the assessment does, which is why a move can produce a larger refund or balance owing than expected.

Yes. Federal thresholds moved with indexation — the top bracket now starts at $258,482, up from $253,414 — and the federal BPA rose from $16,129 to $16,452. Most provinces index their own thresholds too, but not all of them do: a province can legislate a freeze, in which case its bands are identical to last year's. The tables below show 2026; the comparison column shows what changed.