Tax Brackets 2026
Your Canadian marginal & effective tax rate.
Shows where your income lands in the 2026 federal + provincial brackets. Useful for RRSP vs TFSA decisions.
How tax brackets work in Canada
Canada uses a progressive bracket system: each chunk of your income is taxed at a different rate. If you earn $80,000 and the second-bracket rate is 20.5%, you don’t pay 20.5% on ALL $80,000 — only on the portion that falls within that bracket.
Your marginal rate is what you pay on the NEXT dollar — this matters for RRSP planning. A high marginal rate makes the RRSP refund extra valuable.
Your effective rate is your total tax ÷ total income — what fraction of your income actually went to government. Usually 10-15 points lower than the marginal rate.
Calculator uses 2026 federal + provincial brackets. Doesn’t account for credits, deductions, or surtaxes (some provinces). For exact numbers, use NETFILE software or check your Notice of Assessment.