Canadian Income Tax Calculator 2026
Last verified · Methodology
Enter your gross annual income and province to calculate your 2026 federal and provincial income tax, CPP, EI, and after-tax take-home. Covers all 13 Canadian provinces and territories using current CRA bracket rates.
Income Details
Based on 2026 CRA federal brackets, provincial brackets, and BPA of $16,129. CPP and EI are estimates. Quebec provincial tax does not include QPP differences. Does not account for additional credits, deductions, or surtaxes. Not tax advice.
How Canadian Income Tax Works
Canada uses a dual-level income tax system. You pay federal tax to the CRA (Canada Revenue Agency) and provincial or territorial tax to your province. Both systems use progressive marginal brackets, meaning higher income slices are taxed at higher rates. You only pay the higher rate on the amount within that bracket.
The federal Basic Personal Amount (BPA) of $16,129 for 2026 acts as a non-refundable credit that reduces your federal tax owing. Most provinces have a similar BPA, though amounts vary. Taxpayers with income below the BPA generally pay no federal tax.
On top of income taxes, employees pay CPP contributions (5.95% on earnings between $3,500 and $73,200) and EI premiums (1.66% on insurable earnings up to $65,700). These are deductible or generate non-refundable credits on your return. Quebec uses QPP in place of CPP and has its own parental insurance plan.
RRSP contributions reduce your federal and provincial taxable income. Contributing to an RRSP is one of the most effective ways to lower your current-year tax bill while building retirement savings.
2026 Federal Tax Brackets
| Taxable Income | Rate |
|---|---|
| First $57,375 | 15% |
| $57,376 to $114,750 | 20.5% |
| $114,751 to $177,882 | 26% |
| $177,883 to $253,414 | 29% |
| Above $253,414 | 33% |
Federal BPA of $16,129 is deducted from income before applying brackets. Provincial taxes are additional.
| Gross Income | Federal Tax | Ontario Tax | Total Tax | Effective Rate |
|---|---|---|---|---|
| C$40,000 | C$3,554 | C$1,416 | C$4,970 | 12.4% |
| C$60,000 | C$7,554 | C$2,916 | C$10,470 | 17.5% |
| C$80,000 | C$10,825 | C$5,152 | C$15,977 | 20.0% |
| C$100,000 | C$14,554 | C$7,016 | C$21,570 | 21.6% |
| C$150,000 | C$28,654 | C$14,466 | C$43,120 | 28.7% |
Canadian income tax is calculated at both the federal and provincial levels. The federal government applies tiered bracket rates: 15% on the first $57,375, 20.5% to $114,750, 26% to $177,882, 29% to $253,414, and 33% above. Each province or territory adds its own bracket tax. Both levels provide a basic personal amount (BPA) that reduces taxable income. The 2026 federal BPA is $16,129.
The basic personal amount (BPA) is a non-refundable tax credit that effectively exempts a base level of income from federal tax. For 2026, the federal BPA is $16,129. This means the first $16,129 of income is not subject to federal income tax. Each province also has its own BPA that varies by province.
CPP (Canada Pension Plan) and EI (Employment Insurance) are mandatory payroll deductions. For 2026, CPP is 5.95% on earnings between $3,500 and $73,200 (maximum contribution approximately $4,157). EI is 1.66% on insurable earnings up to $65,700 (maximum approximately $1,091). Quebec residents pay into QPP instead of CPP at a similar rate.
Alberta has no provincial sales tax and the lowest combined provincial income tax rates at most income levels, with a flat-ish 10% rate up to $151,234. Nunavut and the Northwest Territories also have relatively low rates. Ontario and Quebec tend to have higher combined burdens at upper-middle incomes, particularly Quebec with its highest provincial rates exceeding 25%.
Yes. Quebec is the only province that administers its own income tax system separately from the CRA. Quebec residents must file both a federal return with the CRA and a separate provincial return with Revenu Quebec. The provincial deductions, credits, and rates differ from other provinces. Quebec residents pay QPP instead of CPP and have different EI premium rates.