Canada 2025 tax brackets and rates

Ke (Christina) Wang
Oct 31, 2025
2 min read

Updated: Nov 27, 2025

Prorated rate for July 1 to December 31, 2025

To reflect the 1% cut in the lowest tax rate coming into effect halfway through the year, the full-year tax rate for 2025 will be 14.5%. This means that for payroll withholding from the first pay in July to the end of the year a tax rate of 14% will apply.

For 2026 and subsequent tax year, the lowest federal tax rate will be 14%. Check out the tax brackets and rates of Ontario, Alberta, British Columbia, and the federal government below.

What are Canada's Federal 2025 tax brackets and rates?

2025 federal tax rates and income thresholds

For July 1 to December 31, 2025, the federal income thresholds, the personal amounts, and the Canada employment amount have been changed based on changes in the consumer price index.

The federal indexing factor for January 1, 2025 is 2.7%. The tax credits corresponding to the claim codes in the tables have been indexed accordingly. Employees will automatically receive the indexing change, whether or not they file Form TD1, 2025 Personal Tax Credits Return.

New July 1 to December 31, 2025 (using the prorated rate)

Annual taxable income ($) from	Annual taxable income ($) to	Federal tax rate, R	Constant ($), K
0.00	57,375.00	14%	0
57,375.01	114,750.00	20.5%	3,729
114,750.01	177,882.00	26%	10,377
177,882.01	253,414.00	29%	15,377
253,414.01	and over	33%	25,514

What are Ontario's 2025 tax brackets and rates?

2025 Ontario tax rates and income thresholds

The indexing factor for January 1, 2025, is 2.8%. The tax credits corresponding to the claim codes in the tables have been indexed accordingly. Employees will automatically receive the indexing increase, whether or not they file Form TD1ON, 2025 Ontario Personal Tax Credits Return.

Annual taxable income ($) from	Annual taxable income ($) to	Provincial tax rate, V	Constant ($), KP
0.00	52,886.00	5.05%	0
52,886.01	105,775.00	9.15%	2,168
105,775.01	150,000.00	11.16%	4,294
150,000.01	220,000.00	12.16%	5,794
220,000.01	and over	13.16%	7,994

What are British Columbia's 2025 tax brackets and rates?

2025 British Columbia tax rates and income thresholds

The indexing factor for January 1, 2025, is 2.8%. The tax credits corresponding to the claim codes in the tables have been indexed accordingly. Employees will automatically receive the indexing change, whether or not they file Form TD1BC, 2025 British Columbia Personal Tax Credits Return.

Annual taxable income ($) from	Annual taxable income ($) to	Provincial tax rate, V	Constant ($), KP
0.00	49,279.00	5.06%	0
49,279.01	98,560.00	7.7%	1,301
98,560.01	113,158.00	10.5%	4,061
113,158.01	137,407.00	12.29%	6,086
137,407.01	186,306.00	14.7%	9,398
186,306.01	259,829.00	16.8%	13,310
259,829.01	and over	20.5%	22,924

What are Alberta's 2025 tax brackets and rates?

Alberta tax rates and income thresholds

The indexing factor for January 1, 2025, is 2.0%. The tax credits corresponding to the claim codes in the tables have been indexed accordingly. Employees will automatically receive the indexing increase, whether or not they file Form TD1AB, 2025 Alberta Personal Tax Credits Return.