Canadian Income Tax Calculator
Calculate your combined federal and provincial income tax. Includes the Basic Personal Amount (BPA) non-refundable credit and full bracket breakdown.
Income Details
Tax Breakdown
Federal Effective Rate
12.0%
Combined Effective Rate
17.7%
Combined Marginal Rate
29.6%
Tax Composition
Federal Bracket Visualization
Expecting a bonus?
See how much tax is deducted from a bonus on top of your salary
Received a severance?
Calculate tax on severance and check RRSP rollover eligibility
Federal Tax Brackets
| Bracket | Rate | Taxable Amount | Tax |
|---|---|---|---|
| $0 – $58,523 | 14.0% | $58,523 | $8,193 |
| $58,523 – $117,045 | 20.5% | $16,477 | $3,378 |
| Basic Personal Amount Credit | −$2,303 | ||
How Canadian Income Tax Works
Canada uses a progressive tax system with both federal and provincial income taxes. You pay two separate taxes: one to the federal government (CRA) and one to your province.
The Basic Personal Amount (BPA) reduces your tax by giving you a non-refundable credit equal to the BPA multiplied by the lowest rate in each jurisdiction. This effectively makes your first ~$16,452 of income tax-free federally.
Quebec residents file a separate provincial return with Revenu Québec and pay federal tax on a different basis (the federal tax is reduced by a Quebec Abatement of 16.5%).
Compare by province
Frequently asked questions
How is Canadian income tax calculated?
Canada uses a progressive bracket system stacking federal and provincial income tax. You pay two separate taxes: one to the federal government (CRA) and one to your province or territory. The two are combined on a single T1 return for every province except Quebec.
What is the Basic Personal Amount (BPA) in Canada?
The Basic Personal Amount is a non-refundable tax credit that effectively makes your first portion of income tax-free. The federal BPA is $16,452 for 2026 (taper applied for income over ~$177k). Each province has its own BPA — Alberta, Manitoba, Quebec and others differ materially from the federal amount.
What are the 2026 federal income tax brackets in Canada?
For 2026 the federal brackets are: 14% on the first $58,523, 20.5% on $58,523–$117,045, 26% on $117,045–$181,440, 29% on $181,440–$258,482, and 33% above $258,482. The lowest rate was reduced from 15% to 14% effective 1 July 2025.
Do I file separate federal and provincial tax returns?
In every province and territory except Quebec, you file a single T1 return with the CRA that calculates both federal and provincial tax. Quebec residents also file a separate provincial return with Revenu Québec and receive a 16.5% federal abatement on their CRA balance.
Sources
Last updated April 2026. Reflects 2026 tax year rates.
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