Rates and deadlines
Federal Tax Brackets for 2026
14%on the first $58,523 of taxable income, the lowest federal rate for 2026. The top rate is 33% above $258,482.
Sources checked October 20263 min read
Key points
- Five federal brackets, from 14% to 33%
- Basic personal amount of up to $16,452
- Each rate applies only to the income inside its own band
- Provincial or territorial tax is charged on top
The five federal brackets
Each rate applies only to the income inside its band. Someone with $100,000 of taxable income pays 14% on the first $58,523 and 20.5% on the rest, not 20.5% on all of it, which comes to about $16,696 of federal tax before credits.
The thresholds move up with inflation every year, and the CRA publishes the new figures each January.
| Taxable income from | Up to | Rate |
|---|---|---|
| $0 | $58,523 | 14% |
| $58,523.01 | $117,045 | 20.5% |
| $117,045.01 | $181,440 | 26% |
| $181,440.01 | $258,482 | 29% |
| $258,482.01 | No upper limit | 33% |
The basic personal amount
Everyone gets a credit on the basic personal amount, up to $16,452 for 2026, worth $2,303.28 at the 14% rate. It starts to shrink once net income passes $181,440 and reaches $14,829 where the 33% bracket begins.
Where provincial tax comes in
Every province and territory adds its own brackets, so the rate on your next dollar of income is the federal rate plus your province's. Quebec residents file a separate Quebec return and receive a 16.5% abatement of basic federal tax. The province and territory guides list each set of brackets in full.
For an owner deciding how to pay themselves, the brackets are what make the split between salary and dividends worth modelling each year rather than setting once.
Quick answers
What are the federal tax brackets for 2026?
14% up to $58,523, 20.5% up to $117,045, 26% up to $181,440, 29% up to $258,482, 33% above $258,482.
How much is the basic personal amount for 2026?
Up to $16,452, reducing to $14,829 for incomes in the top bracket.
Do the brackets change every year?
The rates usually stay put, but the income thresholds rise with inflation each January.
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Official sources
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Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.