Canada 2026 tax brackets and rates! help to figure out how much RRSP you'll need to purchase.
- Toronto CPA Service
- 3 days ago
- 3 min read
Tax rate is the percentage of the employee's taxable income that the employer will have withheld on account of the employee's income tax obligations. There is no employer rate or share for income tax deductions.
The income thresholds are the ranges of taxable income on which a particular tax rate is applied for federal, provincial or territorial income tax. These are also known as 'tax brackets' and are different for federal, provincial and/or territorial income tax.
What are Canada's Federal 2026 tax brackets and rates?
2026 federal tax rates and income thresholds
For 2026, 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, 2026 is 2.0%. 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, 2026 Personal Tax Credits Return.
New 2026
Annual taxable income ($) from | Annual taxable income ($) to | Federal tax rate, R | Constant ($), K |
0.00 | 58,523.00 | 14% | 0 |
58,523.01 | 117,045.00 | 20% | 3,804 |
117,045.01 | 181,440.00 | 26% | 10,241 |
181,440.01 | 258,482.00 | 29% | 15,685 |
258,482.01 | and over | 33% | 26,024 |
What are Ontario's 2026 tax brackets and rates?
2026 Ontario tax rates and income thresholds
For 2026, the provincial income thresholds, the personal amounts, and the tax reduction amounts have been indexed. They have been changed based on changes in the consumer price index.
The indexing factor for January 1, 2026, is 1.9%. The tax credits corresponding to the claim codes in the tables have been indexed accordingly. Employees will automatically receive the indexing increase, whether or not they file Form TD1ON, 2026 Ontario Personal Tax Credits Return.
Annual taxable income ($) from | Annual taxable income ($) to | Provincial tax rate, V | Constant ($), KP |
0.00 | 53,891.00 | 5.05% | 0 |
53,891.01 | 107,785.00 | 9.15% | 2,210 |
107,785.01 | 150,000.00 | 11.16% | 4,376 |
150,000.01 | 220,000.00 | 12.16% | 5,876 |
220,000.01 | and over | 13.16% | 8,076 |
What are British Columbia's 2026 tax brackets and rates?
2026 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 ($), KP |
0.00 | 50,363.00 | 5.06% | 0 |
50,363.01 | 100,728.00 | 7.7% | 1,330 |
100,728.01 | 115,648.00 | 10.5% | 4,150 |
115,648.01 | 140,430.00 | 12.29% | 6,220 |
140,430.01 | 190,405.00 | 14.7% | 9,604 |
190,405.01 | 265,545.00 | 16.8% | 16,603 |
265,545.01 | and over | 20.5% | 23,428 |
What are Alberta's 2026 tax brackets and rates?
Alberta tax rates and income thresholds
For 2026, the provincial income thresholds and the personal amounts have been indexed. They have been changed based on legislative changes.
The indexing factor for January 1, 2026, is 2.0%. The tax credits corresponding to the claim codes in the tables have been indexed accordingly. Employees will automatically receive the indexing increase, whether or not they file Form TD1AB, 2026 Alberta Personal Tax Credits Return.
New 2026
Annual taxable income ($) from | Annual taxable income ($) to | Provincial tax rate, V | Constant ($), KP |
0.00 | 61,200.00 | 8% | 0 |
61,200.01 | 154,259.00 | 10% | 1,224 |
154,259.01 | 185,111.00 | 12% | 4,309 |
185,111.01 | 246,813.00 | 13% | 6,160 |
246,813.01 | 370,220.00 | 14% | 8,628 |
370,220.01 | and over | 15% | 12,331 |
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