Canada Personal Income Tax
Detailed personal income tax rates and rules for Canada in 2026.
Canada imposes a progressive federal income tax with five brackets for the 2026 tax year. These rates apply to taxable income after deductions and credits. The federal government reduced the lowest tax bracket rate from 15% to 14% effective 2026. The basic personal amount (the income threshold below which no federal tax is owed) is approximately $16,129 for 2026. Each province and territory levies its own additional income tax with separate brackets and rates. When combined, the top federal-provincial marginal rate ranges from approximately 44% (Nunavut) to over 54% (Nova Scotia). Individuals are taxed on their worldwide income if they are residents of Canada for tax purposes.
| Income Range (CAD) | Tax Rate |
|---|---|
| C$0 – C$57K | 14% |
| C$57K – C$115K | 20.5% |
| C$115K – C$159K | 26% |
| C$159K – C$226K | 29% |
| C$226K+ | 33% |
Filing Deadline
April 30
Residency Rule
Canada taxes residents on worldwide income. Tax residency is determined by significant residential ties, including having a home, a spouse or common-law partner, or dependants in Canada. The CRA also considers secondary ties such as personal property, social memberships, and provincial health coverage. Non-residents are taxed only on Canadian-source income. Under Part XIII of the Income Tax Act, non-residents are subject to a 25% withholding tax on certain types of passive income, which may be reduced by tax treaties.
Additional Notes
Provincial and territorial income tax rates are applied on top of federal rates. For example, Ontario's top provincial rate is 13.16%, bringing the combined top marginal rate to 53.53%. Quebec collects its own income tax separately through Revenu Québec, and its top rate of 25.75% results in a combined rate of approximately 53.31%. The federal government also imposes the Canada Employment Credit, and various non-refundable tax credits reduce the amount of tax payable. Higher-income earners may also be subject to additional surtaxes or clawbacks on benefits such as Old Age Security (OAS).
How Canada Income Tax compares
Canada’s top personal income tax rate of 53% is the 6th highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and North America’s regional average of 24.4%.
