Information on income tax rates in Canada including federal rates and those rates specific to provinces and territories.

Here we’ve collected everything you need to know about this year’s income tax rates. According to the Canada Revenue Agency (CRA), these are the federal tax rates for tax year 2025: Your tax bracket is based on “taxable income,” which is your gross income from all sources, minus any ...

increasing the federal AMT rate from 15% to 20.5% and the AMT exemption from CAD 40,000 to the start of the second from top federal tax bracket (i.e. CAD 177,882 in 2025; indexed thereafter) broadening the AMT base through changes to the ‘tax ...

This is the amount reported on line 15000 of the return, or the total of the previous income items (lines 10100, 10400 to 11400, 11500 to11700,11900, 12000,12100 to 12500, 12600, 12700, 12800, 12900 to 13010, 13500, 13700, 13900, 14100, 14300, and 14700). This is the amount reported on line ...

December 3, 2025 - Ryan Minor, director of tax at Chartered Professional Accountants Canada, says some of the reasoning behind using inflation as a metric to justify the widening of the brackets is to match the purchasing power of Canadians. “Your incomes are going up, but your real purchasing power isn’t going up.

This article explains the different income tax brackets and rates for 2025, how they work, and how much you may have to pay, depending on your income level and province of residence.

December 3, 2025 - ... The lowest tax rate was reduced to 14%, effective for the full year. This is down from 14.5% for 2025 due to a mid-year adjustment in July 2025. ... The Basic Personal Amount (BPA) is a non-refundable credit that reduces the taxable income ...

The tax rates in Ontario range from 5.05% to 13.16% of income and the combined federal and provincial tax rate is between 20.05% and 53.53%. Ontario’s marginal tax rate increases as your income increases so you pay higher taxes on the level of income that falls into a higher tax bracket.

3 weeks ago - For the 2026 tax year, the tax brackets were increased from the previous year by a BC CPI rate of 2.2%. Tax rates are applied on a cumulative basis. For example, if your taxable income is more than $50,363, the first $50,363 of taxable income is taxed at 5.06%, the next $50,365 of taxable income is taxed at 7.70%, the next $14,920 of taxable income is taxed at 10.50%, the next $24,782 of taxable income is taxed at 12.29%, the next $49,975 of taxable income is taxed at 14.70%, the next $75,140 is taxed at 16.80%, and any income above $265,545 is taxed at 20.50%.

1 month ago - You’ll pay 14.5% tax on the first $57,375 of income, and then 20.5% tax on the remaining $2,625. Federal income tax is just one part of your total tax bill. In Canada, there are also provincial and territorial tax brackets to factor in.

So, whether you earn $20,000 or $1 million, every dollar within that tax bracket is taxed at the same rate, less any deductions or tax credits. As you climb through the different tax brackets, the portion of your income ...

These are the ranges of taxable income on which a particular tax rate is applied for federal, provincial or territorial income tax. These are also known as 'tax brackets' and are different for federal, provincial and/or territorial income tax.

Estimate your 2025-26 Canada taxes with our federal Income Tax Calculator. Instantly see your refund, after-tax income, and latest provincial tax brackets.

November 6, 2025 - Together, these changes mean many Canadians could see lower tax bills—or larger refunds—depending on their income and deductions. In most cases, employees file their own tax returns, but HR professionals still play a key role in ensuring tax bracket information is up to date and accurate. HR’s expertise on this subject not only safeguards employee finances but can also help to build trust and confidence in the business and its ability to manage payroll responsibilities. In this guide, we’ll discuss Canada income tax brackets in 2025 and outline what you need to know about income tax as an employer.

So, whether you earn $20,000 or $1 million, every dollar within that tax bracket is taxed at the same rate, less any deductions or tax credits. As you climb through the different tax brackets, the portion of your income ...

October 8, 2025 - Further deductions are allowed in determining "taxable income", such as capital losses, half of capital gains included in income, and a special deduction for residents of northern Canada. Deductions permit certain amounts to be excluded from taxation altogether. "Tax payable before credits" is determined using five tax brackets and tax rates.

TaxTips.ca - Canada's 2025 & 2026 Personal income tax brackets and tax rates for eligible and non-eligible dividends, capital gains, and other income.

Canada has what's known as a marginal tax rate system, which means your income is divided into different sections (called tax brackets).

EY’s tax calculators and rate tables help simplify the tax process for you by making it easy to figure out how much tax you pay.

August 25, 2025 - How much tax you pay in each country depends on your income bracket, available tax deductions, and the state or province in which you live. Statistics-gathering agencies in both the United States and Canada publish averages of income taxes paid. However, comparing the two sets of numbers is like comparing the stats of a hockey player with those of a basketball player.