Canada Income Tax Calculator (2026)
2026 federal and provincial income tax for all 13 provinces and territories: employment, self-employment, capital gains and dividends, CPP/QPP and EI, average and marginal rates, refund or balance owing, and a province-by-province comparison.
How it works
Taxable income = employment + self-employment + other income + ½ capital gains + dividends × 1.38 (eligible) or × 1.15 (non-eligible) − RRSP/FHSA − other deductions − enhanced CPP/QPP Federal tax = brackets(taxable income) − 14% × (basic personal amount + Canada employment amount + base CPP/QPP + EI + age/pension amounts) − dividend tax credits Provincial tax = provincial brackets − lowest provincial rate × provincial credit amounts − provincial dividend credits (+ Ontario surtax and health premium, − Ontario/BC tax reductions) 2026 federal brackets: 14% to $58,523 · 20.5% to $117,045 · 26% to $181,440 · 29% to $258,482 · 33% above
Canadians pay two income taxes on the same taxable income: federal tax, which is identical everywhere (the lowest rate is 14% for all of 2026), and provincial or territorial tax, which ranges from Nunavut’s 4% starting rate to 21.8% at the top in Newfoundland and Labrador. Each level first taxes your income bracket by bracket, then subtracts non-refundable credits worth its lowest rate times your credit amounts — the basic personal amount, your CPP or QPP and EI contributions, the Canada employment amount and, if they apply, the age and pension amounts. Dividends are grossed up and then offset by dividend tax credits, and only half of a capital gain is taxed, which is why each kind of income has its own marginal rate. Ontario adds a surtax and the health premium; Quebec residents file a separate provincial return and get a 16.5% abatement of federal tax. CPP/QPP and EI are payroll contributions, not income tax, but the calculator includes them so the after-tax figure is what you actually keep. The comparison table runs your exact inputs through every province and territory.
Worked example
An Ontario employee earning $85,000 in 2026 pays $4,230 of CPP, $416 of CPP2 and $1,123 of EI. The $1,127 enhanced CPP is deductible, leaving $83,873 of taxable income. Federal tax is $13,390 on the brackets less $3,163 of credits (14% of $22,596) = $10,227. Ontario tax is $5,465 on the brackets less $890 of credits = $4,574, below the surtax threshold, plus the $750 health premium = $5,324. Total income tax is $15,551 — an 18.3% average rate and a 29.65% marginal rate — and take-home pay is about $63,680.
Sources: CRA — Canadian income tax rates for individuals, current year (2026) · CRA — T4127 Payroll Deductions Formulas, 122nd edition (January 1, 2026) · CRA — T4127 Payroll Deductions Formulas, 123rd edition (July 1, 2026) · Revenu Québec — Principal changes for 2026 · Québec Finance — Parameters of the personal income tax system for 2026 · TaxTips.ca — 2026 dividend tax credit rates and non-refundable credit amounts
Frequently asked questions
Which provinces and territories are covered?
All 13: the ten provinces plus Yukon, the Northwest Territories and Nunavut, using the 2026 brackets published by the CRA and Revenu Québec. Pick yours from the list; the comparison table shows the same income in every other one.
Why is my marginal rate on dividends lower than on salary?
Dividends are paid from corporate profits that were already taxed, so they are grossed up and then reduced by a dividend tax credit. Eligible dividends from public companies get the larger credit; at low incomes the credit can even exceed the tax, giving a negative marginal rate that offsets tax on other income.
Does this include CPP and EI?
Yes. Employment income pays 5.95% CPP up to $74,600, 4% CPP2 up to $85,000 and 1.63% EI up to $68,900 (Quebec: 6.3% QPP, 1.30% EI and 0.43% QPIP). The base part is a tax credit and the enhanced part is a deduction, exactly as on the return. Turn off the CPP/EI switch under More options to treat the amount as plain taxable income.
Why is Quebec different?
Quebec runs its own income tax and pension plan. Quebec residents get a 16.5% abatement of federal tax, pay QPP and the parental insurance premium (QPIP), and claim a deduction for workers instead of credits for payroll contributions on the provincial return.
What changed for 2026?
The federal lowest rate is 14% for the whole year (it was 14.5% blended in 2025) and federal brackets rose 2%. BC raised its lowest rate to 5.60%, PEI added a 20% bracket above $200,000, Newfoundland and Labrador raised its basic personal amount to $13,094, and Manitoba kept its brackets frozen.
How accurate is the refund estimate?
It compares the income tax you enter as already paid with the tax calculated here. Your real return may differ because of credits not modelled here (tuition, medical, donations, family amounts), refundable benefits and any CPP or EI overpayment.
Related calculators
Uses 2026 tax-year federal, provincial and territorial figures (CRA payroll formulas T4127 January and July 2026 editions, CRA 2026 rates, Revenu Québec). Educational estimate, not tax advice — confirm with CRA, Revenu Québec or a tax professional.