Canada’s 2026 federal income tax brackets are 14 per cent on the first $58,523 of taxable income, 20.5 per cent up to $117,045, 26 per cent up to $181,440, 29 per cent up to $258,482 and 33 per cent on income above that, according to the Canada Revenue Agency. Provincial or territorial tax is charged on top.
Updated Oct. 22, 2026. The CRA has not yet published 2027 brackets; this guide will be updated when it does.
The figures are from the CRA’s tax rates and income brackets for 2026 page and its indexation page, which shows brackets and most credits rose by 2.0 per cent for 2026 to keep pace with inflation. They apply to income you earn in 2026 and report on the return you file in spring 2027.
Key facts
| Item | 2026 figure |
|---|---|
| Lowest federal rate | 14 per cent on the first $58,523 (was 14.5 per cent for 2025 and 15 per cent before that) |
| Top federal rate | 33 per cent above $258,482 |
| Indexation for 2026 | 2.0 per cent |
| Federal basic personal amount | $16,452 (falls to $14,829 for net income of $258,482 or more) |
| Canada employment amount | $1,501 |
| Age amount (65 and older) | $9,208, reduced above net income of $46,432 |
| Quebec abatement | 16.5 per cent of basic federal tax for Quebec residents |
| Which province’s rates apply | The one you live in on Dec. 31, 2026 |
| 2027 brackets | Not yet published by the CRA as of Oct. 22, 2026 |
What are the federal tax brackets for 2026?
| Taxable income | Federal rate |
|---|---|
| $0 to $58,523 | 14% |
| $58,523.01 to $117,045 | 20.5% |
| $117,045.01 to $181,440 | 26% |
| $181,440.01 to $258,482 | 29% |
| More than $258,482 | 33% |
Why did the lowest federal tax rate drop to 14 per cent?
Parliament cut the rate on the first bracket from 15 per cent to 14 per cent effective July 1, 2025, through Bill C-4. Because the change took effect partway through the year, the CRA says the rate for the full 2025 tax year was 14.5 per cent. The Department of Finance’s report on the change says the rate is 14 per cent for 2026 and later years. The same rate is used to calculate most non-refundable credits, such as the basic personal amount.
What is the basic personal amount for 2026?
The federal basic personal amount is $16,452 for 2026, which means most people pay no federal tax on roughly that much income. The extra portion of $1,623 is gradually clawed back for net income between $181,440 and $258,482, so people at or above $258,482 get $14,829. Each province and territory sets its own basic personal amount.
What are the provincial and territorial tax brackets for 2026?
The CRA collects tax for every province and territory except Quebec, which runs its own system through Revenu Québec. Rates below are from the CRA’s 2026 tables and, for Quebec, from Revenu Québec.
| Province or territory | 2026 brackets and rates | Lowest rate | Top rate |
|---|---|---|---|
| Newfoundland and Labrador | 8.7% to $44,678; 14.5% to $89,354; 15.8% to $159,528; 17.8% to $223,340; 19.8% to $285,319; 20.8% to $570,638; 21.3% to $1,141,275; 21.8% above | 8.7% | 21.8% |
| Prince Edward Island | 9.5% to $33,928; 13.47% to $65,820; 16.6% to $106,890; 17.62% to $142,520; 19% to $200,000; 20% above | 9.5% | 20% |
| Nova Scotia | 8.79% to $30,995; 14.95% to $61,991; 16.67% to $97,417; 17.5% to $157,124; 21% above | 8.79% | 21% |
| New Brunswick | 9.4% to $52,333; 14% to $104,666; 16% to $193,861; 19.5% above | 9.4% | 19.5% |
| Quebec | 14% to $54,345; 19% to $108,680; 24% to $132,245; 25.75% above | 14% | 25.75% |
| Ontario | 5.05% to $53,891; 9.15% to $107,785; 11.16% to $150,000; 12.16% to $220,000; 13.16% above | 5.05% | 13.16% |
| Manitoba | 10.8% to $47,564; 12.75% to $101,200; 17.4% above | 10.8% | 17.4% |
| Saskatchewan | 10.5% to $54,532; 12.5% to $155,805; 14.5% above | 10.5% | 14.5% |
| Alberta | 8% to $61,200; 10% to $154,259; 12% to $185,111; 13% to $246,813; 14% to $370,220; 15% above | 8% | 15% |
| British Columbia | 5.6% to $50,363; 7.7% to $100,728; 10.5% to $115,648; 12.29% to $140,430; 14.7% to $190,405; 16.8% to $265,545; 20.5% above | 5.6% | 20.5% |
| Yukon | 6.4% to $58,523; 9% to $117,045; 10.9% to $181,440; 12.8% to $500,000; 15% above | 6.4% | 15% |
| Northwest Territories | 5.9% to $53,003; 8.6% to $106,009; 12.2% to $172,346; 14.05% above | 5.9% | 14.05% |
| Nunavut | 4% to $55,801; 7% to $111,602; 9% to $181,439; 11.5% above | 4% | 11.5% |
Two changes stand out for 2026. British Columbia raised its lowest rate to 5.6 per cent from 5.06 per cent, the CRA’s July 2026 payroll formulas show, and Prince Edward Island added a top bracket of 20 per cent on income above $200,000. Quebec indexed its brackets by 2.05 per cent but left its rates unchanged.
How do tax brackets work in Canada?
Canada uses marginal rates, so each rate applies only to the slice of income inside its bracket. Moving into a higher bracket never reduces your take-home pay on the income below it.
Our calculation for someone with $70,000 of taxable income in 2026: the first $58,523 is taxed federally at 14 per cent, or $8,193.22, and the remaining $11,477 at 20.5 per cent, or $2,352.79. That is $10,546.01 in federal tax before credits. The basic personal amount credit of $2,303.28 (14 per cent of $16,452) brings it to about $8,242.73, before other credits such as those for CPP contributions, EI premiums and the Canada employment amount. Provincial tax is calculated separately using your province’s brackets and credits.
Contributions to an RRSP lower your taxable income at your top marginal rate. Our story on the 2027 RRSP limit has the latest contribution limits, and our guide to sales tax rates by province covers GST, HST and PST.
When will the 2027 tax brackets be announced?
The CRA had not published 2027 indexed brackets or a 2027 indexation rate as of Oct. 22, 2026; its indexation page covers 2023 to 2026. The only 2027 change confirmed so far is in British Columbia, where the CRA’s payroll formulas say brackets and non-refundable credits are “temporarily paused at their 2026 levels” for 2027 to 2030. Other changes coming in the new year are in our roundup of new rules on Jan. 1, 2027, and CRA filing tips are in our story on the pre-filled tax return deadline.
Frequently asked questions about 2026 tax brackets
What are the federal tax brackets for 2026 in Canada?
The rates are 14 per cent up to $58,523, 20.5 per cent up to $117,045, 26 per cent up to $181,440, 29 per cent up to $258,482 and 33 per cent above that.
Is the lowest federal tax rate 14 or 15 per cent?
It is 14 per cent for 2026. It was 15 per cent until June 30, 2025, and works out to 14.5 per cent for the 2025 tax year.
What is the basic personal amount for 2026?
The federal basic personal amount is $16,452, reduced gradually to $14,829 for net income between $181,440 and $258,482.
How much did tax brackets go up in 2026?
Federal brackets and most credits were indexed by 2.0 per cent for 2026. Quebec indexed its own brackets by 2.05 per cent.
Which province has the lowest income tax rate?
Nunavut has the lowest first-bracket rate at four per cent, followed by Ontario at 5.05 per cent and British Columbia at 5.6 per cent.
Have the 2027 tax brackets been released?
No. As of Oct. 22, 2026, the CRA had not published 2027 brackets. British Columbia has said its brackets will stay at 2026 levels from 2027 to 2030.
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Sources: Canada Revenue Agency, tax rates and income brackets for 2026, 2025 rates, indexation of personal income tax amounts and T4127 payroll formulas, July 2026; Department of Finance, report on reducing the lowest tax rate; Revenu Québec income tax rates; Quebec Finance Ministry, 2026 indexation.
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