2026 Tax Brackets Canada
Understanding how Canadian taxes work—and how to keep more of your money.
How Tax Brackets Work
Canada uses a marginal tax system. This means you don't pay one flat rate on all your income—you pay different rates on different portions. Only the income in each bracket gets taxed at that bracket's rate.
💡 Common Misconception
"If I earn more, I'll end up with less because of higher taxes." Not true! Only the additional income gets taxed at the higher rate. A raise always means more money in your pocket.
2026 Federal Tax Brackets
| Income Range | Tax Rate |
|---|---|
| Up to $55,867 | 15% |
| $55,867 to $111,733 | 20.5% |
| $111,733 to $173,205 | 26% |
| $173,205 to $246,752 | 29% |
| Over $246,752 | 33% |
2026 Provincial Added Tax Rates
Across Canada
- Alberta: No provincial added tax (no provincial sales tax)
- British Columbia: 5.06% on taxable income up to $45,654; increases for higher income brackets
- Manitoba: 10.8% on taxable income up to $36,842; higher brackets apply for increased income
- New Brunswick: 9.68% on taxable income up to $44,887
- Newfoundland and Labrador: 8.7% on taxable income up to $41,457
- Northwest Territories: 5.9% on taxable income up to $48,326
- Nova Scotia: 8.79% on taxable income up to $29,590
- Nunavut: 4% on taxable income up to $50,877
- Prince Edward Island: 9.8% on taxable income up to $31,984
- Quebec: 15% on taxable income up to $49,275 (Quebec has its own tax system, separate from CRA)
- Saskatchewan: 10.5% on taxable income up to $49,720
- Yukon: 6.4% on taxable income up to $53,359
Heads up: These are starting rates for each province/territory—higher rates may apply as your income increases. For the most accurate and up-to-date info, check your province's official website or speak with a licensed tax professional.
Ways to Reduce Your Taxes
- ✦RRSP contributions: Reduce your taxable income dollar-for-dollar
- ✦FHSA contributions: Same tax deduction, for first-time homebuyers
- ✦Claim all deductions: Work from home, moving expenses, childcare, etc.
- ✦Tax credits: Medical expenses, donations, tuition, transit (some provinces)
🍁 Canadian Pro Tip
If you're self-employed or have a side hustle, track ALL your business expenses. Home office, phone, internet, supplies—they all reduce your taxable income.