Income Tax Calculator Canada 2026
“Income tax” in Canada actually means two separate taxes added together, federal and provincial. This calculator combines both into one total, so you can see exactly how much income tax you owe overall, for any province and income.
Income Tax Calculator
+ Advanced options (overtime, bonus, TD1, RRSP)
Independent estimate based on 2026 CRA federal/provincial payroll formulas, Revenu Québec figures, and published CPP/CPP2/QPP/QPP2, EI and QPIP rates. Taxable benefits are assumed pensionable (count toward CPP/QPP) but not insurable (excluded from EI/QPIP), treatment varies by benefit type in practice. RRSP/pension contributions reduce taxable income only, not CPP/QPP or EI/QPIP earnings, matching standard payroll treatment. Not affiliated with the CRA or Government of Canada. Actual payroll may differ based on your employer's specific deductions and other factors. This tool does not constitute tax or financial advice.
Independent estimate of statutory employer payroll costs (CPP/QPP, EI, QPIP) based on 2026 published rates. Does not include optional employer costs such as extended health benefits, pension matching beyond CPP/QPP, workers' compensation premiums, or vacation pay accruals, which vary by employer and province. Not affiliated with the CRA or Government of Canada.
The calculator above shows “Federal tax” and “Provincial tax” as two separate lines. Add them together for your total income tax. Everything else in the breakdown (CPP, EI) is a separate mandatory contribution, not tax.
Your Combined Income Tax Results
Total income tax by common income level, Ontario 2026:
| Income | Federal | Provincial | Total tax | Effective rate |
|---|---|---|---|---|
| $40,000 | $3,297 | $1,364 | $4,661 | 11.65% |
| $60,000 | $6,193 | $2,625 | $8,817 | 14.70% |
| $75,000 | $9,268 | $3,997 | $13,265 | 17.69% |
| $100,000 | $14,393 | $6,378 | $20,771 | 20.77% |
| $150,000 | $26,455 | $14,420 | $40,876 | 27.25% |
| $200,000 | $40,067 | $23,905 | $63,972 | 31.99% |
How Federal and Provincial Tax Combine
Federal and provincial tax are calculated completely independently, each with its own brackets and its own basic personal amount, then simply added together for your total. Federal tax is the same regardless of where you live; provincial tax is the layer that changes based on your province. Neither one affects how the other is calculated.
Combined Marginal Tax Rate
Your combined marginal rate, the tax on your next dollar earned, is your federal marginal bracket rate plus your provincial marginal bracket rate. At $75,000:
| Province | Federal marginal | Provincial marginal | Combined marginal |
|---|---|---|---|
| Ontario | 20.50% | 9.15% | 29.65% |
| Alberta | 20.50% | 10.00% | 30.50% |
| Quebec | 17.12%* | 19.00% | 36.12% |
*Quebec’s federal marginal rate is reduced by the 16.5% federal abatement. This combined rate matters for decisions like evaluating a raise, bonus, or extra shift, not for your overall tax burden, which is always lower (your effective rate). If you want to reduce your income tax, our guide covers RRSP contributions, tax credits, and other legal strategies. FHSA contributions work the same way, see our First Home Savings Account guide for the 2026 limits.
Income Tax by Province
Total combined income tax on a $75,000 salary, by province:
| Province | Total income tax | Net pay |
|---|---|---|
| British Columbia | $13,245 | $56,385 |
| Ontario | $13,265 | $56,366 |
| Alberta | $13,722 | $55,908 |
| Saskatchewan | $15,412 | $54,218 |
| New Brunswick | $16,076 | $53,554 |
| Manitoba | $16,198 | $53,432 |
| Quebec | $16,618 | $52,668 |
| Nova Scotia | $17,746 | $51,885 |
For the full breakdown of just the federal portion, see our Federal Tax Estimator; for just the provincial portion across all 13 jurisdictions, see our Calculate Provincial Tax.
Income Tax vs. Total Payroll Deductions
Income tax is only part of what comes off your paycheque. Your pay stub’s “total deductions” also includes CPP or QPP (retirement pension contributions) and EI or QPIP (employment/parental insurance premiums). These fund specific programs you’ll draw benefits from, unlike income tax which funds general government spending. At $75,000 in Ontario, income tax is $13,265 of a total $18,634 in deductions, CPP and EI make up the rest. See our Payroll Deductions Calculator for the complete picture including those.
Income Tax Calculation Example
Full combined calculation for a $75,000 income in Ontario:
| Federal tax (after basic personal amount credit) | $9,267.73 |
| Ontario tax (after basic personal amount credit) | $3,997.03 |
| Total income tax | $13,264.76 |
| Effective combined rate | 17.69% |
Even though the combined marginal rate at this income is 29.65%, the effective (average) rate paid on the whole $75,000 is only 17.69%. The gap exists because lower brackets and both basic personal amount credits are applied before the top rate ever kicks in.
Federal Income Tax Brackets 2026
Canada taxes income in slices. Only the part of your income inside a bracket is taxed at that bracket’s rate. The federal brackets for 2026 are:
| Taxable income | Federal 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% |
| Above $258,482 | 33% |
The lowest federal rate fell to 14% for 2026, and the federal basic personal amount is $16,452, so the first $16,452 you earn is not taxed at all. Each province and territory then adds its own brackets and its own basic personal amount on top of the federal calculation.
Basic Personal Amounts 2026: All 13 Provinces and Territories
Your basic personal amount is the tax-free amount you claim on your TD1 forms. For 2026 the amounts are: federal $16,452, Alberta $22,769, British Columbia $13,216, Manitoba $15,780, New Brunswick $13,664, Newfoundland and Labrador $13,094, Northwest Territories $18,198, Nova Scotia $11,932, Nunavut $19,659, Ontario $12,989, Prince Edward Island $15,000, Quebec $18,952, Saskatchewan $20,381, and Yukon $16,452. Alberta’s amount is the most generous in the country and Nova Scotia’s the smallest, which is one reason the same salary is taxed so differently across provinces.
Tax on Other Income: Interest, Dividends, and Capital Gains
Employment income is only part of the picture. Interest income, such as bank interest or GIC interest, is taxed in full at your marginal rate, just like salary. Capital gains are taxed more lightly: only 50% of a gain is included in your income, so at a 30% marginal rate a $10,000 gain costs about $1,500 in tax, not $3,000. Canadian dividends fall in between: eligible dividends are grossed up by 38% and then partly offset by the dividend tax credit, which usually makes them cheaper than interest but more expensive than capital gains at the same income level.
The calculator on this page models employment income, which is what most Canadians earn. If a large share of your income comes from investments, use the marginal rate it shows as your starting point and apply the rules above to each income type.
From Annual Tax to Your Paycheque
An annual tax figure is hard to budget with, so it helps to translate it. Divide your total income tax by your number of pay periods and you get roughly what your employer withholds for tax on each cheque, before CPP and EI are added. For the complete per-paycheque picture, including CPP, CPP2, and EI on top of tax, use our payroll deductions calculator, which breaks down a single paycheque line by line.
Sources and Last Checked
The figures on this page use the Canada Revenue Agency’s 2026 payroll deduction formulas (T4127) and the 2026 federal and provincial basic personal amounts published in the CRA’s T4032 tables and provincial TD1 forms. Rates and amounts were last checked against those official sources in October 2026. See our sources and methodology page for the full list of references.
Frequently asked questions
How much income tax will I pay in Canada?
It depends on your income and province, since you pay two separate layers, federal tax (same everywhere) plus provincial tax (varies by location). Enter your income and province into the calculator above for your exact combined total.
What is the difference between income tax and total deductions?
Income tax means federal and provincial tax combined. Total deductions on your pay stub also include CPP/QPP and EI/QPIP, which are separate contributions, not tax. This page focuses specifically on the income tax portion.
Why do I pay both federal and provincial income tax?
Canada uses a two-tier system: the federal government taxes income the same way nationwide, while each province separately taxes the same income using its own brackets and rates, to fund provincial services like healthcare and education.
What is my combined marginal tax rate?
Add your federal marginal rate and your provincial marginal rate together, for example, at $75,000 in Ontario, that’s 20.5% federal plus 9.15% provincial, for a 29.65% combined marginal rate on your next dollar earned.
Does income tax include CPP and EI?
No, CPP/QPP and EI/QPIP are separate mandatory contributions, calculated independently from income tax. See our CPP Calculator and EI Calculator for those specifically, or the main Canada Paycheck Calculator for everything combined.
How is income tax different in Quebec?
Quebec residents pay Quebec’s own separate provincial tax (with different brackets than the rest of Canada) and receive a 16.5% federal tax abatement to offset it, producing a genuinely different combined income tax calculation than other provinces.