Federal tax rates for 2026
| Rate | Taxable income |
|---|---|
| 14% | $0 – $58,523 |
| 20.5% | $58,523 – $117,045 |
| 26% | $117,045 – $181,440 |
| 29% | $181,440 – $258,482 |
| 33% | $258,482 and over |
Brackets are indexed to inflation every year. They apply to taxable income, after deductions such as RRSP contributions and the enhanced part of CPP.
Non-refundable tax credits
Federal tax is reduced by non-refundable credits, calculated at the lowest rate (14%):
- Basic personal amount: $16,452 (gradually reduced to $14,829 for the highest incomes).
- Canada employment amount: up to $1,501 for employees.
- Base CPP or QPP contributions and EI premiums paid during the year.
- Other credits you may claim on your return: tuition, medical expenses, donations, disability, age amount.
Federal tax on common salaries
Federal income tax only, after credits, for an employee in Ontario:
Quebec residents
Quebec residents file a separate provincial return with Revenu Québec and receive a 16.5% abatement that reduces their federal tax, because Quebec funds some programs itself.
Combined marginal rates
Your real marginal rate combines the federal and provincial brackets. In most provinces it passes 40% somewhere above $100,000, and exceeds 50% at the top in several provinces. See the provincial tax rates guide for every province.
Worked example: federal tax on $80,000
Taxable income after the enhanced CPP deduction: $79,073.
- 14% × $58,523 = $8,193
- 20.5% × $20,550 = $4,213
Tax before credits: $12,406. Credits at 14% for the basic personal amount, CPP, EI and the Canada employment amount bring federal tax down to $9,243.
Indexation each year
The CRA indexes federal brackets and most credit amounts to inflation every January, so the thresholds rise a little each year. Rates only change when Parliament votes a change, like the cut of the lowest rate to 14%.
Frequently asked questions
What are the federal tax brackets for 2026?
14% on $0 – $58,523; 20.5% on $58,523 – $117,045; 26% on $117,045 – $181,440; 29% on $181,440 – $258,482; 33% on $258,482 and over.
What is the basic personal amount?
$16,452 for most taxpayers in 2026.
Is the lowest federal rate 14% or 15%?
The lowest federal rate was cut from 15% to 14% starting July 1, 2025, so 14% applies for the whole of 2026.
How much federal tax do I pay on $80,000?
About $9,243 after credits, before provincial tax.
Are the brackets based on gross or taxable income?
Taxable income, after deductions such as RRSP contributions, union dues and the enhanced CPP contribution.
Figures use CRA and Revenu Québec 2026 federal and provincial brackets, basic personal amounts, CPP/QPP, EI and QPIP rates for an employee. Read our methodology. Last updated September 25, 2026. Estimates for information only, not tax advice.