2026 Canada Federal Tax Brackets

Canada uses a progressive federal tax system on top of provincial or territorial tax, plus CPP and EI contributions.

2026 Federal Tax Brackets

The 29.29% rate in the fourth bracket reflects the gradual phase-out of the Basic Personal Amount (BPA) in that range, on top of the standard 29% statutory rate.

Basic Personal Amount (BPA)

Every Canadian can earn up to the BPA before paying federal tax. For 2026, the BPA is $16,452 for net income up to $181,440, phasing down to a minimum of $14,829 for income at or above $258,482.

Provincial & Territorial Tax

In addition to federal tax, every province and territory levies its own income tax with separate brackets. Alberta and the territories generally have the lowest combined rates, while Quebec, Nova Scotia, and Newfoundland and Labrador tend to have the highest. Quebec administers its own provincial tax system separately from the CRA.

Canada Pension Plan (CPP)

Employees contribute 5.95% of pensionable earnings between $3,500 and the Year's Maximum Pensionable Earnings (YMPE) of $74,600 in 2026, for a maximum contribution of $4,230.45. An additional CPP2 tier applies 4% on earnings between $74,600 and $85,000.

Employment Insurance (EI)

Employees pay 1.63% of insurable earnings up to the maximum insurable earnings of $68,900, for a maximum annual premium of $1,123.07. Quebec residents pay a lower rate (1.30%, max $895.70) because the province runs its own parental insurance plan (QPIP).

Source: Canada Revenue Agency (CRA) and Employment and Social Development Canada (ESDC), 2026 rates. Figures simplified for estimation; consult the CRA or a tax professional for your exact situation.