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Tax-year changes, Canada

Canada tax changes for 2026

The lowest federal rate settled at 14% for a full year, brackets and basic amounts were indexed, and the CPP and EI ceilings rose. Here is each rule side by side, and what it does to your pay.

Reviewed by CentExactRules effective 2 sources

The lowest federal rate, for a whole year

The federal rate on the first bracket of taxable income is 14% in 2026, down from 14.5%. The cut took effect on 1 July 2025, when the rate fell from 15% to 14%, so 2025 was charged at the blended 14.5% and 2026 is the first full year at the new rate. Non-refundable credits, including the basic personal amount and the credits for CPP and EI, are worth the same lowest rate, so they fell with it: that takes back part of the cut, and is why the gain is a few hundred dollars a year rather than more.

Every federal bracket was indexed: the first now ends at $58,523, the 33% rate starts above $258,482, and the basic personal amount is $16,452, shrinking to $14,829 at the top.

Provinces moved in different directions

Most provinces indexed their brackets and basic amounts, but two changes stand out. British Columbia raised its lowest rate from 5.06% to 5.6%, which offsets much of the federal cut for B.C. residents and at some salaries more than all of it: the B.C. impact table shows a small loss at 90,000 dollars. It also raised its low-income tax reduction to $690. Alberta's 8% bracket, new in 2025 on the first 60,000 dollars, now runs to $61,200.

In Ontario the brackets and the basic personal amount of $12,989 were indexed, along with the surtax thresholds, while the health premium is unchanged. Quebec indexed its brackets and its basic amount, now $18,952, and the deduction for workers rose to $1,450.

CPP and EI ceilings rose

CPP contributions now run up to $74,600 of pay, from $71,300, and the second additional contribution, CPP2, up to $85,000. The rates are unchanged, so anyone earning above the old ceiling pays more: this is why the gains in the tables shrink between 60,000 and 90,000 dollars. EI premiums fell slightly to 1.63% but now apply up to $68,900. In Quebec, the QPP rate fell to 6.3% and the QPIP rate to 0.43%, which is part of why Quebec gains most at every salary. To see your own province and salary, use the take-home pay calculator.

Every rule, 2025 and 2026

90 of the 218 rules below changed. Each value is read from the 2025 and 2026 datasets, so a rule appears as changed only if the published figure changed.

Federal income tax

Federal income tax: 2025 and 2026
Rule20252026Change

Income tax, Alberta

Income tax, Alberta: 2025 and 2026
Rule20252026Change

Income tax, British Columbia

Income tax, British Columbia: 2025 and 2026
Rule20252026Change

Income tax, Manitoba

Income tax, Manitoba: 2025 and 2026
Rule20252026Change
First bracket: ends at$47,564$47,000-$564
Second bracket: ends at$101,200$100,000-$1,200
First bracket: rate10.8%10.8%No change
Second bracket: rate12.75%12.75%No change
Third bracket: rate17.4%17.4%No change
Basic personal amount$15,780$15,780No change
Rate for non-refundable credits10.8%10.8%No change
Basic personal amount starts to fall at$200,000$200,000No change
Basic personal amount gone at$400,000$400,000No change

Income tax, New Brunswick

Income tax, New Brunswick: 2025 and 2026
Rule20252026Change
First bracket: ends at$51,306$52,333+$1,027
Second bracket: ends at$102,614$104,666+$2,052
Third bracket: ends at$190,060$193,861+$3,801
Basic personal amount$13,396$13,664+$268
First bracket: rate9.4%9.4%No change
Second bracket: rate14%14%No change
Third bracket: rate16%16%No change
Fourth bracket: rate19.5%19.5%No change
Rate for non-refundable credits9.4%9.4%No change

Income tax, Newfoundland and Labrador

Income tax, Newfoundland and Labrador: 2025 and 2026
Rule20252026Change

Income tax, Nova Scotia

Income tax, Nova Scotia: 2025 and 2026
Rule20252026Change
First bracket: ends at$30,507$30,995+$488
Second bracket: ends at$61,015$61,991+$976
Third bracket: ends at$95,883$97,417+$1,534
Fourth bracket: ends at$154,650$157,124+$2,474
Basic personal amount$11,744$11,932+$188
First bracket: rate8.79%8.79%No change
Second bracket: rate14.95%14.95%No change
Third bracket: rate16.67%16.67%No change
Fourth bracket: rate17.5%17.5%No change
Fifth bracket: rate21%21%No change
Rate for non-refundable credits8.79%8.79%No change

Income tax, Northwest Territories

Income tax, Northwest Territories: 2025 and 2026
Rule20252026Change
First bracket: ends at$51,964$53,003+$1,039
Second bracket: ends at$103,930$106,009+$2,079
Third bracket: ends at$168,967$172,346+$3,379
Basic personal amount$17,842$18,198+$356
First bracket: rate5.9%5.9%No change
Second bracket: rate8.6%8.6%No change
Third bracket: rate12.2%12.2%No change
Fourth bracket: rate14.05%14.05%No change
Rate for non-refundable credits5.9%5.9%No change
Employee payroll tax2%2%No change

Income tax, Nunavut

Income tax, Nunavut: 2025 and 2026
Rule20252026Change
First bracket: ends at$54,707$55,801+$1,094
Second bracket: ends at$109,413$111,602+$2,189
Third bracket: ends at$177,881$181,439+$3,558
Basic personal amount$19,274$19,659+$385
First bracket: rate4%4%No change
Second bracket: rate7%7%No change
Third bracket: rate9%9%No change
Fourth bracket: rate11.5%11.5%No change
Rate for non-refundable credits4%4%No change
Employee payroll tax2%2%No change

Income tax, Ontario

Income tax, Ontario: 2025 and 2026
Rule20252026Change

Income tax, Prince Edward Island

Income tax, Prince Edward Island: 2025 and 2026
Rule20252026Change

Income tax, Quebec

Income tax, Quebec: 2025 and 2026
Rule20252026Change
First bracket: ends at$53,255$54,345+$1,090
Second bracket: ends at$106,495$108,680+$2,185
Third bracket: ends at$129,590$132,245+$2,655
Basic personal amount$18,571$18,952+$381
Deduction for workers, at most$1,420$1,450+$30
First bracket: rate14%14%No change
Second bracket: rate19%19%No change
Third bracket: rate24%24%No change
Fourth bracket: rate25.75%25.75%No change
Rate for non-refundable credits14%14%No change
Deduction for workers, share of pay6%6%No change

Income tax, Saskatchewan

Income tax, Saskatchewan: 2025 and 2026
Rule20252026Change
First bracket: ends at$53,463$54,532+$1,069
Second bracket: ends at$152,750$155,805+$3,055
Basic personal amount$19,491$20,381+$890
First bracket: rate10.5%10.5%No change
Second bracket: rate12.5%12.5%No change
Third bracket: rate14.5%14.5%No change
Rate for non-refundable credits10.5%10.5%No change

Income tax, Yukon

Income tax, Yukon: 2025 and 2026
Rule20252026Change

CPP and QPP

CPP and QPP: 2025 and 2026
Rule20252026Change

Employment Insurance

Employment Insurance: 2025 and 2026
Rule20252026Change
EI premium rate1.64%1.63%−0.01 pp
EI premium rate in Quebec1.31%1.3%−0.01 pp
Maximum insurable earnings$65,700$68,900+$3,200
Employer pays this many times the employee premium1.41.4No change

Take-home pay under both years' rules

Annual take-home pay at each salary, worked out by the take-home pay calculator's own engine under the 2025 rules and the 2026 rules, with the calculator's opening assumptions for everything else.

Ontario

Take-home pay, Ontario, 2025 and 2026
Salary2025 take-home2026 take-homeChange a year
$35,000$29,083.61$29,222.83+$139.22
$50,000$39,935.18$40,144.93+$209.75
$60,000$46,977.45$47,339.75+$362.30
$75,000$56,671.14$56,925.82+$254.68
$90,000$67,049.18$67,196.92+$147.74
$120,000$86,891.01$87,342.77+$451.76
$150,000$103,868.13$104,319.89+$451.76
$200,000$130,704.50$131,278.27+$573.77

Alberta

Take-home pay, Alberta, 2025 and 2026
Salary2025 take-home2026 take-homeChange a year
$35,000$29,565.45$29,728.03+$162.58
$50,000$40,308.11$40,541.17+$233.06
$60,000$47,346.28$47,690.65+$344.37
$75,000$57,095.25$57,361.50+$266.25
$90,000$67,347.89$67,508.50+$160.61
$120,000$87,968.21$88,257.96+$289.75
$150,000$107,168.21$107,457.96+$289.75
$200,000$137,344.33$137,853.66+$509.33

British Columbia

Take-home pay, British Columbia, 2025 and 2026
Salary2025 take-home2026 take-homeChange a year
$35,000$29,608.92$29,793.44+$184.52
$50,000$40,534.42$40,573.78+$39.36
$60,000$47,582.92$47,754.56+$171.64
$75,000$57,640.39$57,710.56+$70.17
$90,000$68,232.32$68,193.36-$38.96
$120,000$88,869.15$89,067.03+$197.88
$150,000$107,104.54$107,376.56+$272.02
$200,000$135,793.93$136,274.33+$480.40

Quebec

Take-home pay, Quebec, 2025 and 2026
Salary2025 take-home2026 take-homeChange a year
$35,000$28,835.81$29,038.86+$203.05
$50,000$39,010.36$39,290.29+$279.93
$60,000$45,452.19$45,893.08+$440.89
$75,000$54,307.01$54,663.05+$356.04
$90,000$63,676.20$63,941.97+$265.77
$120,000$82,069.42$82,544.08+$474.66
$150,000$98,042.89$98,565.46+$522.57
$200,000$123,732.07$124,355.83+$623.76

Work out your own figure: take-home pay on 2026 rules or on 2025 rules.

Data sources

Both years' rules are read from datasets that record where each figure came from and when it applies. 2026 took effect on 1 January 2026.

  1. Canada: federal and provincial payroll deductions, CPP, CPP2 and EI, 2026

    CRA, T4127 Payroll Deductions Formulas (123rd edition, July 2026); CRA, Federal tax rates and income thresholds, current year; CRA, CPP contribution rates, maximums and exemptions; ESDC, 2026 Employment Insurance premium rate; Revenu Québec, Employers' principal changes for 2026; Ontario, Health premium rates.

    Effective 1 January 2026 to 31 December 2026. Retrieved 29 August 2026. Within its effective period.

    Follows the CRA T4127 payroll formula: the enhanced CPP/QPP contribution and CPP2/QPP2 are deducted from income before tax, while the base contribution and EI are non-refundable credits at the lowest rate. Includes the federal basic personal amount clawback, the Ontario surtax, tax reduction and health premium, the Quebec 16.5% federal abatement with QPP and QPIP, and the Northwest Territories and Nunavut 2% employee payroll tax. Employer-only levies (EHT, FSS, HAPSET) are excluded from take-home and shown as employer cost. Credits other than the basic personal amount, the Canada employment amount and the CPP/EI credits are not modelled.

    How we checked these figures

    Reference vectors reproduce a T4127 implementation cross-checked against third-party engines; CRA's PDOC cannot be scripted, so figures were verified against published rate tables rather than PDOC itself.

  2. Canada: federal and provincial payroll deductions, CPP, CPP2 and EI, 2025

    CRA, Last year tax rates and income brackets (2025); CRA, T4127 Payroll Deductions Formulas, 121st edition, effective July 1, 2025 (French edition); CRA, CPP contribution rates, maximums and exemptions; Revenu Québec, Principaux changements pour l'année 2025; Government of British Columbia, B.C. basic personal income tax credits; Ontario, Health premium rates.

    Effective 1 January 2025 to 31 December 2025. Retrieved 19 October 2026. Past its effective period.

    Annual 2025 rules, applied as the T4127 payroll formula applies a year's parameters. Two rates changed part-way through 2025 and are stored at their annual values: the lowest federal rate fell from 15% to 14% on 1 July, making 14.5% for the year, and Alberta's new 8% bracket on the first 60,000 dollars applies to the whole year. Manitoba, Saskatchewan and Prince Edward Island changed their basic personal amounts in July; the annual amounts (15,780, 19,491 and 14,650 dollars) are stored, not the prorated payroll figures. The enhanced CPP/QPP contribution and CPP2/QPP2 are deducted from income; the base contribution and EI are credits at the lowest rate. Employer-only levies are shown as employer cost. Credits other than the basic personal amount, the Canada employment amount and the CPP/EI credits are not modelled.

    How we checked these figures

    Federal and provincial brackets are the CRA's 2025 table. CPP (4.95% base on 71,300 dollars less the 3,500 exemption, at most 3,356.10), EI (1.64% on 65,700 dollars, at most 1,077.48), QPP (5.40% base, 3,661.20) and QPIP (0.494%) match the T4127 July 2025 formulas. Quebec's brackets, 18,571 dollar basic amount and the 1,420 dollar worker deduction are Revenu Québec's 2025 figures; the B.C. tax reduction (562 dollars, from 25,020 at 3.56%) is the province's own table.