Tax Brackets Canada 2026: Federal & Provincial Rates
Know exactly how much tax you'll pay at every income level - federal and provincial combined.
Understanding tax brackets helps you make smarter financial decisions - from timing income to choosing between RRSP and TFSA contributions. Here are the complete 2026 federal and provincial tax rates for Canada.
2026 Federal Tax Brackets
| Taxable Income | Federal Rate |
|---|---|
| $0 - $57,375 | 14% |
| $57,375 - $114,750 | 20.5% |
| $114,750 - $177,882 | 26% |
| $177,882 - $253,414 | 29% |
| Over $253,414 | 33% |
Remember: tax brackets are marginal. If you earn $60,000, you don't pay 20.5% on everything. You pay 14% on the first $57,375 and only 20.5% on the remaining $2,625.
2026 Provincial Tax Rates
Your total tax rate = federal + provincial. Here are the rates for major provinces:
Ontario 2026
| Taxable Income | Ontario Rate |
|---|---|
| $0 - $51,446 | 5.05% |
| $51,446 - $102,894 | 9.15% |
| $102,894 - $150,000 | 11.16% |
| $150,000 - $220,000 | 12.16% |
| Over $220,000 | 13.16% |
British Columbia 2026
| Taxable Income | BC Rate |
|---|---|
| $0 - $47,937 | 5.06% |
| $47,937 - $95,875 | 7.70% |
| $95,875 - $110,076 | 10.50% |
| $110,076 - $133,664 | 12.29% |
| $133,664 - $181,232 | 14.70% |
| $181,232 - $252,752 | 16.80% |
| Over $252,752 | 20.50% |
Alberta 2026
| Taxable Income | Alberta Rate |
|---|---|
| $0 - $148,269 | 10% |
| $148,269 - $177,922 | 12% |
| $177,922 - $237,230 | 13% |
| $237,230 - $355,845 | 14% |
| Over $355,845 | 15% |
Combined Marginal Rates by Province
Here's what you actually pay (federal + provincial combined) at common income levels:
| Income | Ontario | BC | Alberta |
|---|---|---|---|
| $50,000 | 20.05% | 22.70% | 25.00% |
| $75,000 | 29.65% | 28.20% | 30.50% |
| $100,000 | 29.65% | 31.00% | 30.50% |
| $150,000 | 37.16% | 40.70% | 36.00% |
| $250,000 | 46.16% | 49.80% | 44.00% |
Marginal rates - the rate on your next dollar earned
How to Use This for Financial Planning
RRSP Decisions
Your marginal rate tells you how much an RRSP contribution saves you. At a 30% marginal rate, a $10,000 RRSP contribution saves $3,000 in taxes. The higher your rate, the more valuable RRSP contributions become.
Income Timing
If you're close to a bracket threshold, consider timing income or deductions. Getting a bonus in January instead of December could push income into a year with lower overall income.
Spousal Income Splitting
If one spouse is in a higher bracket, strategies like spousal RRSPs or pension splitting can reduce overall family taxes by shifting income to the lower-earning spouse.
The Bottom Line
For 2026, federal rates range from 14% to 33%, with provincial rates adding another 5% to 20%+ depending on where you live. Alberta has the lowest combined rates for most income levels, while Quebec and Nova Scotia tend to be highest.
Understanding your marginal rate helps you make informed decisions about RRSPs, TFSAs, income timing, and more. It's one of the most important numbers in your financial planning toolkit.
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