How Canadian income tax works
You pay federal tax and tax to your province or territory, each in brackets: every rate applies only to the income inside its bracket. Non-refundable credits then reduce the tax, mainly the basic personal amount, and your CPP and EI contributions. Separately, 5.95% of pay between $3,500 and $74,600 goes to CPP (another 4% up to $85,000 as CPP2) and 1.63% up to $68,900 to EI.
| Taxable income | Rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
| Province or territory | Basic personal amount | Lowest rate | Top rate (over) |
|---|---|---|---|
| Alberta | $22,769 | 8% | 15% ($370,220) |
| British Columbia | $13,216 | 5.6% | 20.5% ($265,545) |
| Manitoba | $15,780* | 10.8% | 17.4% ($100,000) |
| New Brunswick | $13,664 | 9.4% | 19.5% ($193,861) |
| Newfoundland and Labrador | $13,094 | 8.7% | 21.8% ($1,141,275) |
| Nova Scotia | $11,932 | 8.79% | 21% ($157,124) |
| Northwest Territories | $18,198 | 5.9% | 14.05% ($172,346) |
| Nunavut | $19,659 | 4% | 11.5% ($181,439) |
| Ontario | $12,989 | 5.05% | 13.16% ($220,000) |
| Prince Edward Island | $15,000 | 9.5% | 20% ($200,000) |
| Quebec | $18,952 | 14% | 25.75% ($132,245) |
| Saskatchewan | $20,381 | 10.5% | 14.5% ($155,805) |
| Yukon | $16,452* | 6.4% | 15% ($500,000) |
* Reduced at high incomes, like the federal amount ($16,452, falling to $14,829 between $181,440 and $258,482).
Worked example: $60,000 in Ontario
CPP is 5.95% of $56,500 = $3,361.75 and EI is 1.63% of $60,000 = $978. The enhanced 1% part of CPP ($565) is deducted, leaving $59,435 taxable. Federal tax is about $8,380 on the brackets minus $3,042 in credits: $5,338.30. Ontario tax is about $3,229 minus $847 in credits, plus the $600 Ontario Health Premium: $2,982.20. Take-home pay is $47,339.75 a year, about $3,945 a month.
Moving or comparing offers? Run the same salary for two provinces, or convert a foreign offer first with the currency converter. Working in the UK? Use the UK tax calculator.
Rates checked on 1 October 2026 against CRA 2026 tax rates, CRA's T4127 payroll formulas (July 2026), Revenu Québec and Manitoba's Budget 2026. An estimate, not tax advice.