Income Tax Calculator 2026 and Marginal Tax Rate

Estimate your 2026 federal and provincial income tax on your taxable income, your average tax rate and your combined marginal tax rate for your province or territory.

Updated: October 1, 2026
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Province
Annual income/ year
$
Deductions (RRSP, FHSA, etc.)optional
$
Amounts deducted from income before tax: RRSP and FHSA contributions, union dues, child care expenses, etc.
Federal tax/ year
$
Basic provincial tax/ year
$
Total provincial tax/ year
$
Total income tax/ year
$
Income after tax/ year
$
Average tax rate
Marginal tax rate
Income tax only (CPP/QPP, EI and QPIP are not included). Estimate for informational purposes: other credits and deductions can change your actual tax.
Top combined marginal tax rate by province (2026)
Province or territoryTop marginal rateApplies above
Newfoundland and Labrador54.30%$570,638
Nova Scotia54.00%$258,482
Ontario53.53%$258,482
British Columbia53.50%$265,545
Quebec53.30%$258,482
New Brunswick52.50%$258,482
Prince Edward Island52.00%$258,482
Manitoba50.40%$258,482
Alberta48.00%$370,220
Yukon48.00%$500,000
Saskatchewan47.50%$258,482
Northwest Territories47.05%$258,482
Nunavut44.50%$258,482
Income tax by province for this income
Rank Province / territory Total tax Average rate

How income tax is calculated in Canada

Canada uses progressive tax brackets: each rate applies only to the portion of income that falls within its bracket. You pay federal tax to the Canada Revenue Agency and provincial or territorial tax based on where you lived on December 31. Both are calculated on your taxable income, then reduced by non-refundable credits such as the basic personal amount.

Taxable income = Total income − Deductions (RRSP, FHSA, etc.) Federal tax = Tax by brackets − 14% × Basic personal amount Provincial tax = Tax by brackets − Lowest rate × Provincial basic amount (+ surtax / premiums) Total income tax = Federal tax + Provincial tax

Average tax rate vs marginal tax rate

Your average tax rate is your total tax divided by your income: it measures the share of your income that goes to tax. Your marginal tax rate is the combined federal and provincial rate on your next dollar of income. Moving into a higher bracket never reduces your take-home pay: only the dollars above the threshold are taxed at the higher rate.

Why your marginal rate matters

What this calculator includes

2026 federal and provincial brackets, the federal basic personal amount (reduced for high incomes), provincial basic amounts, the 16.5% Quebec abatement, Ontario surtax and Health Premium, and the BC tax reduction. Payroll contributions (CPP/QPP, EI, QPIP) are not income tax: to see your take-home pay, use the net salary calculator.

Sources

2026 income tax by province

On $60,000 of taxable income, total income tax ranges from $8,172 (Nunavut) to $12,205 (Nova Scotia).

RankProvince or territoryTax on $60,000Tax on $100,000
1Nunavut$8,172$19,172
2British Columbia$8,814$20,094
3Northwest Territories$8,848$20,488
4Yukon$9,018$20,818
5Alberta$9,171$21,347
6Ontario$9,417$21,521
7Saskatchewan$10,462$23,662
8New Brunswick$10,901$24,701
9Quebec$11,200$25,647
10Manitoba$11,222$24,522
11Newfoundland and Labrador$11,328$25,466
12Prince Edward Island$11,503$26,161
13Nova Scotia$12,205$27,060

Federal and provincial income tax on taxable income, with basic personal amounts.

FAQ - Income tax and marginal tax rate

What are the 2026 federal tax brackets?

14% up to $58,523; 20.5% up to $117,045; 26% up to $181,440; 29% up to $258,482; 33% above. The federal basic personal amount is $16,452.

Which province has the highest top marginal tax rate?

Highest: Newfoundland and Labrador (54.30%). Lowest: Nunavut (44.50%).

What is the difference between the average and marginal tax rate?

The average rate is your total tax divided by your income. The marginal rate is the tax on the next dollar earned: it determines the value of an RRSP deduction or the cost of a raise.

Does this calculator include CPP, EI or QPIP?

No. It calculates income tax only. For payroll deductions, use the net salary calculator.