Skip to content

Taxes

Federal Income Tax Brackets 2026 and How Much Tax Comes Off Your Pay

For 2026, federal tax is 14% on income up to $58,523, 20.5% up to $117,045, 26% up to $181,440, 29% up to $258,482, and 33% above that. Provincial tax is added on top. Employers work out how much to take off each pay with the CRA's Payroll Deductions Online Calculator.

By Fact-checked by Samuel Athur

Last verified How we check our facts

2026 federal tax brackets

Taxable incomeFederal rate
Up to $58,52314%
$58,523 to $117,04520.5%
$117,045 to $181,44026%
$181,440 to $258,48229%
Over $258,48233%

The lowest rate dropped to 14.5% for 2025 and 14% from 2026. Rates apply only to the income within each bracket, not your whole income.

How much tax is deducted from my paycheque?

Your employer deducts income tax, CPP contributions and EI premiums each pay. The amount depends on your pay, how often you're paid, your province and the claim amounts on your TD1 forms. Employers use the CRA's Payroll Deductions Online Calculator; you can use it too to check your pay stub.

Related

What Is Line 15000 on Your Tax Return? (Total Income) Line 15000 is your total income: everything you earned from all sources in the year (employment, pensions, investments, self-employment and other income) before any deductions. Deductions are then subtracted to get your net income (line 23600) and taxable income (line 26000). Why Is My Tax Refund Lower Than Expected? The most common reasons are that the CRA used part of your refund to pay a debt you owe (taxes, a benefit overpayment, or another government debt like a student loan or EI overpayment), or it changed your return, for example by disallowing a credit. Your notice of assessment explains exactly what happened. How Pension Income Is Taxed in Canada Pension income such as CPP, OAS and workplace pensions is taxable and is added to your other income at your normal tax rates. Tax may be withheld at source; you can reduce what you owe with the pension income amount, pension income splitting, and other credits for seniors.

Sources

North Help Desk is an independent guide, not a government website. Rules, amounts and phone hours can change; always confirm on the official page before you act. Spotted something out of date? Tell us.