Tax brackets Canada 2026: federal and provincial rates
For 2026 the federal government taxes income at 14% on the first $58,523 of taxable income, 20.5% up to $117,045, 26% up to $181,440, 29% up to $258,482 and 33% above that. Every province and territory adds its own brackets on top, so your combined marginal rate depends on where you live. Choose a province below to see the combined 2026 rates for ordinary income, capital gains and both kinds of dividends.
Canadian tax brackets
2026 Combined Tax Brackets loading…
How to use the tax brackets table
Choose a province or territory and the table shows the combined federal and provincial marginal rate for each band of taxable income in 2026. It opens on Alberta.
All ten provinces and three territories are in the list. Pick the one you lived in on December 31, 2026, because that sets your provincial rates for the year.
Find the row your taxable income falls in. Taxable income is income after deductions such as RRSP contributions, so it is usually lower than your salary.
Read across the row: ordinary income, capital gains, eligible dividends and non-eligible dividends each have their own rate, because each is taxed differently.
How to read your result
Every rate in the table is a marginal rate: the tax on one more dollar inside that band, not on your whole income.
Marginal, not average
A rate applies only to income inside its band, so earning more never raises the tax on the dollars you already earned. To see your total tax and average rate, use the Canada tax calculator.
Why there are more rows than brackets
Federal and provincial brackets start at different incomes, so the table splits wherever either one changes. Alberta, for example, shows ten bands built from five federal and six provincial brackets.
Capital gains and dividends
Capital gains rates are half the ordinary rate, because half of a gain is taxable. Dividend rates apply to the cash dividend received, after the 38% or 15% gross-up and the dividend tax credits. A negative rate, such as −1.57% on eligible dividends in Alberta's first band, means the credit exceeds the tax and can reduce the tax on your other income.
Odd decimals from $181,440 to $258,482
Rates such as 41.29% in Alberta include the gradual loss of the federal basic personal amount, which falls from $16,452 to $14,829 across that range and adds about 0.29 points to the marginal rate.
2026 federal tax brackets
These federal rates apply in every province and territory. Quebec residents pay them too, less a 16.5% abatement. The basic personal amount of $16,452 offsets federal tax on roughly the first $16,452 of income.
Before credits. Source: Canada Revenue Agency, tax rates and income brackets for 2026.
Tax brackets inside a financial plan
A retiree in the OAS clawback range is paying their nominal marginal rate plus 15 percent of recovery tax on each additional dollar. Layer in a reducing age amount and provincial credit phase-outs and the true effective rate on a band of income can exceed the top marginal rate, even though the retiree's income is nowhere near the top bracket.
Kaetyn St. Hilaire, CFA, in The pension splitting mistake most Canadians over 65 make
Because each band has its own rate, the same income costs less when it is spread across years or across two returns. Pension income splitting, spousal RRSPs and planned RRSP withdrawals all work this way, and so does realizing capital gains in low-income years, which capital gains tax in Canada explains.
Fitting brackets, OAS and RRIF minimums together over a whole retirement is the work of financial planning in Calgary with Kaetyn.
Tax brackets Canada 2026 questions
Answers drawn from the calculator's own rules and 2026 federal and provincial figures.
14% on the first $58,523 of taxable income, 20.5% up to $117,045, 26% up to $181,440, 29% up to $258,482 and 33% above that. Provincial or territorial tax is charged on top.
The top federal rate is 33%, on taxable income over $258,482. With provincial tax, the top combined rate on ordinary income is 48% in Alberta, 53.5% in British Columbia and 53.53% in Ontario. Choose any province in the table above for its top rate.
Each rate applies only to the income inside its bracket. On $100,000 of taxable income, federal tax is 14% of the first $58,523 plus 20.5% of the rest, before credits. Your marginal rate is the rate on your last dollar; your average rate is always lower.
Yes. The federal brackets and the federal basic personal amount rose by 2.0% for 2026, and Alberta's thresholds and credit amounts also rose by 2%. Other provinces index by their own rules.
Related articles
- Capital gains tax in Canada: the quiet drag on retirement income Half the gain, your marginal rate
- The pension splitting mistake most Canadians over 65 make Pension income splitting
- Spousal RRSPs: the income-splitting strategy high earners overlook Two sets of brackets
- OAS clawback and RRSP withdrawals Spending down without the clawback
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