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 tax deductions you may qualify for.

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 ...

The lowest personal tax rate was reduced from 15% to 14% effective July 1, 2025, resulting in an effective tax rate for 2025 of 14.5%, and 14% for 2026 and later years. The 14.5% and 14% are be used for personal tax credit calculations.

Canadian income tax rates vary according to the total amount of income you earn, and how much of that is considered taxable income. For prior year tax rates, review this link from the Canadian government, and for Quebec residents, review this link from Revenu Québec. Tax brackets are ranges of increasingly higher levels of income used to calculate income tax due.

May 1, 2025 - Low income cut-offs (LICOs) before and after tax by community size and family size, in current dollars, annual.

Revenue Canada(CRA) follows progressive tax rate system which means higher personal income is taxed at a higher rate and lower personal income is taxed at lower rate. We have compiled the various tax brackets and marginal tax rate applicable for each bracket.

For 2026 and subsequent tax year, the $60,000 threshold will be indexed like other income brackets, and the 8% tax rate will apply to this first bracket.

October 8, 2025 - "Tax payable before credits" is determined using five tax brackets and tax rates. Non-refundable tax credits are then deducted from tax payable before credits for various items such as a basic personal amount, dependents, Canada/Quebec Pension Plan contributions, Employment Insurance premiums, disabilities, tuition and education and medical expenses. These credits are calculated by multiplying the credit amount (e.g., the basic personal amount of $11,038 in 2013) by the lowest tax rate.

November 6, 2025 - On November 4, François-Philippe Champagne, Minister of Finance and National Revenue, presented Canada’s 2025 federal budget. Here is a summary of the most relevant proposals that may impact Canadians. ... The tax rate applied to most non-refundable federal tax credits is based on the first marginal personal income tax rate.

December 3, 2025 - In 2026, the lowest income tax bracket will cover the first $58,523 of income. ... Pizza wars? As U.S. chains fight for consumers, how things slice up here · Health Canada says fake Viagra, Cialis likely sold in multiple Ontario cities

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.

June 18, 2025 - As employment income increases, the savings will culminate at the end of the threshold for the second tax bracket ($58,299). Any additional income would be taxed at the next rate of 20.5 per cent which is not modified by the proposed tax cut.

This table presents taxable income for all Canada based on line 26000 of the return. Table 3 presents net federal tax for all Canada based on line 42000 of the return. Table 4 presents the number of taxfilers by age group, tax bracket and province or territory.

Government is keeping its promise ... of 8% on the first $60,000 of income, effective January 1, 2025. The new tax bracket will save individuals up to $750 in 2025. Taxpayers earning less than $60,000 will see their personal income taxes fall by 20%. For more ...

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%.

August 28, 2025 - This is also how most provincial tax brackets work as well—we’ll get to those below. In 2025, the lowest federal tax bracket applies to the first $57,375 of your earnings. So, for example, if you made $50,000 from all sources of taxable ...

2 weeks ago - This is how much income tax you'll have to pay next year based on your bracket: ... In July, Canada cut the lowest marginal personal income tax rate from 15 to 14 per cent, which is reflected in the brackets for 2026.

March 7, 2023 - There’s no single lowest-tax province for everyone in Canada, but Alberta and the three territories often offer the lowest overall burden for many people.

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 that falls within each ...