Salary and wages also pay CPP (QPP in Quebec) and EI. Other income does not.
Tax brackets for 2026 · Ontario
Marginal rates apply only to the slice of income inside each bracket. Pick a province or territory above to see its table.
| Taxable income | Rate |
|---|---|
| $0 – $58,523 | 14% |
| $58,523 – $117,045 | 20.5% |
| $117,045 – $181,440 | 26% |
| $181,440 – $258,482 | 29% |
| Over $258,482 | 33% |
| Taxable income | Rate |
|---|---|
| $0 – $53,891 | 5.05% |
| $53,891 – $107,785 | 9.15% |
| $107,785 – $150,000 | 11.16% |
| $150,000 – $220,000 | 12.16% |
| Over $220,000 | 13.16% |
How the estimate works
Your income is taxed in slices: each federal and provincial bracket applies only to the part of taxable income that falls inside it.
From that bracket tax we subtract non-refundable credits worked out at the lowest rate in each bracket table: the basic personal amount, the Canada employment amount for employees, and the CPP (QPP), EI and QPIP premiums that qualify. The extra CPP/QPP contributions above the base rate are deducted from income instead of earning a credit.
Quebec residents get a 16.5% abatement on basic federal tax and file a separate Quebec return; this tool shows the combined total using the same method as the CRA withholding tables.
Province-specific rules included
- Ontario: the surtax (20% over a threshold of provincial tax, plus 36% over a second one), the Ontario Health Premium and the low-income tax reduction.
- British Columbia: the tax reduction for lower incomes.
- Manitoba: a basic personal amount that phases out for incomes between $200,000 and $400,000.
- Yukon, Northwest Territories and Nunavut: the Canada employment amount is also a territorial credit. Yukon follows the federal basic personal amount formula.
- The federal basic personal amount is reduced between $181,440 and $258,482 of net income.
What this leaves out
- Credits beyond the basics: age, disability, tuition, medical, spouse or dependant, charitable donations, and the many provincial credits.
- Dividends and capital gains treatment: any other income is taxed as ordinary income here. For capital gains use the capital gains tool.
- Benefits that depend on income (the Canada Child Benefit, GST/HST credit, Canada Workers Benefit) and clawbacks such as Old Age Security recovery tax.
- The Alternative Minimum Tax, tax on split income, and anything on your actual return that this simplified model does not know about.
- Taxable benefits and employer-specific deductions (pension plans, union dues, benefits).
Use the CRA’s own tools or your tax software for filing. This estimate is for planning only.
Frequently asked questions
Which tax year does this use?
The 2026 tax year: the federal and provincial brackets and personal amounts published by the CRA for 2026, and the 2026 CPP, EI and (in Quebec) QPP and QPIP rates. Rates were last reviewed on November 1, 2026.
What is the difference between average and marginal tax rate?
The average rate is total tax divided by income. The marginal rate is the tax on your next dollar of income. This page works it out by adding $100 of the same kind of income and comparing the tax, so it includes effects such as the Ontario surtax.
Why does my pay stub not match?
Payroll withholding follows the CRA T4032 tables for the pay period, uses your TD1 claims and may include other deductions. Your actual tax is settled when you file your return, so the amounts can differ.
Does this work for Quebec?
Yes, with Quebec’s own brackets, the 16.5% federal abatement, QPP, the reduced EI rate and QPIP. The Revenu Québec parameters could not be machine-checked against its site, so treat Quebec results as a closer estimate than a final figure and compare with Revenu Québec’s calculator.
Do my RRSP contributions lower the tax shown?
Yes. Enter your RRSP contribution under deductions and the tax is recalculated on the lower income. The RRSP savings calculator shows the difference directly.
Last updated
Related tools
Sources
- CRA: Tax rates and income thresholds (current year)
- CRA: 2026 TD1 personal tax credits returns
- CRA: T4032 payroll deductions tables
- CRA: CPP contribution rates, maximums and exemptions
- CRA: Second additional CPP contribution (CPP2)
- CRA: EI premium rates and maximums
Quebec’s own figures come from Revenu Québec, whose website blocks automated checks; they are not linked here.
How we check
The test suite sums our bracket tables and credits and compares them with the “V × A − KP” constants in the CRA’s 2026 T4032 payroll deduction tables, for twelve provinces and territories. Those constants are rounded to whole dollars, so we accept a difference of up to $1.
For Ontario we also reproduce the CRA’s worked example in T4032ON: federal tax within 2 cents, provincial tax within $1, and the $750 Health Premium exactly.
Limits: we have not compared the results with the CRA’s or Revenu Québec’s online calculators or with filing software. Quebec’s provincial parameters (brackets, basic amount, QPP, QPIP, EI rate) are from published summaries rather than a page we could fetch automatically.