Canada Income Tax Calculator

Estimate Canadian federal and provincial income tax, taxable income, marginal rate, effective rate, and take-home income.

CRA 2026OntarioUpdated 2026

Canada income tax inputs

Tax year 2026 · CRA federal + Ontario

Salary, wages, or self-employment income before deductions.

Determines provincial / territorial brackets and BPA.

Official CRA year for which brackets apply.

Self-employment, taxable interest, rental income, etc.

RRSP, union dues, and similar deductions from taxable income.

Federal + provincial income tax estimate only. Excludes CPP, EI, OAS clawback, benefits (CWB, GST/HST credit, climate action incentive), Quebec Abatement / QPP / QPIP / Health Services Fund, provincial surtaxes (Ontario, Nova Scotia, PEI), provincial health premiums, dividend tax credits, capital gains inclusion rate, and non-refundable credits beyond the BPA.

Total income tax

$13,264.75

Federal + ON · Tax year 2026

Take-home after income tax

$61,735.25

Gross + additional income minus federal + provincial tax.

Federal tax

$9,267.73

After $2,303.28 federal BPA credit.

ON provincial tax

$3,997.02

After $655.94 ON BPA credit.

Taxable income

$75,000.00

Gross $75,000.00 minus $0.00 pre-tax deductions.

Effective tax rate

17.69%

Total tax ÷ gross income.

Marginal tax rate

29.65%

Combined federal (20.50%) + ON (9.15%).

BPA credit applied

$2,959.22

Federal + ON BPA non-refundable credits.

Federal Tax Bracket Breakdown

Bracket rateIncome in bracketBracket rangeTax
14.00%$58,523.00$0.00 – $58,523.00$8,193.22
20.50%$16,477.00$58,523.00 – $117,045.00$3,377.79

Ontario Tax Bracket Breakdown

Bracket rateIncome in bracketBracket rangeTax
5.05%$53,891.00$0.00 – $53,891.00$2,721.50
9.15%$21,109.00$53,891.00 – $107,785.00$1,931.47

Note: Ontario surtax (20% / additional 36% above thresholds) and Ontario Health Premium are not modelled.

This calculator provides an estimate for educational purposes only and is not tax advice. Actual tax liability may vary based on deductions, credits, local rules, residency, benefits, and personal circumstances. Always verify with official tax authorities or a qualified tax professional.

Change the inputs above to compare scenarios before making a decision.
Updated May 2026Formula verifiedReviewed for accuracy

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How to read your results

Progressive brackets

Income within each bracket is taxed at that bracket's rate. Federal and provincial brackets are applied separately and added together.

Marginal vs effective

Marginal rate is the combined federal + provincial rate on your next dollar. Effective rate is your total tax divided by your gross income.

Income tax only

CPP, EI, OAS clawback, provincial surtaxes / health premiums, Quebec Abatement, and most credits beyond the BPA are not modelled.

Formula

How Canadian income tax is calculated

Taxable income

Taxable income = gross income + additional taxable income − pre-tax deductions.

Federal + provincial tax

Federal tax = progressive federal brackets on taxable income, minus the federal BPA credit (lowest rate × BPA). Provincial tax is computed the same way with provincial brackets and BPA.

Total tax & take-home

Total tax = federal tax + provincial tax (each floored at $0). Take-home = gross + additional income − total tax.

FAQ

Canada income tax calculator questions

Canada applies federal tax brackets on taxable income, plus your province or territory of residence applies its own brackets. Each portion of taxable income is taxed at the rate of the bracket it falls into. A non-refundable Basic Personal Amount (BPA) credit reduces tax at the lowest federal and provincial rates.