🇨🇦 Canada / Tax Rates

Canada Tax Rates & Limits 2026

Official rates sourced from Canada Revenue Agency, Federal tax rates for 2025.

Last updated: 2026-06-27

Current Rates

Parameter	Value
Federal Bracket 1 Rate	15
Federal Bracket 1 Max	57,375
Federal Bracket 2 Rate	20.5
Federal Bracket 2 Min	57,376
Federal Bracket 2 Max	114,750
Federal Bracket 3 Rate	26
Federal Bracket 3 Min	114,751
Federal Bracket 3 Max	158,519
Federal Bracket 4 Rate	29
Federal Bracket 4 Min	158,520
Federal Bracket 4 Max	220,000
Federal Bracket 5 Rate	33
Federal Bracket 5 Min	220,001
Cpp Employee Contribution Rate	5.95
Cpp2 Employee Rate	4
Ei Premium Rate Employee	1.66

Rules & Limits

Parameter	Value
Basic Personal Amount 2025	16,129
Cpp Maximum Pensionable Earnings 2025	71,300
Cpp Basic Exemption	3,500
Cpp Maximum Employee Contribution 2025	4,034
Cpp2 Maximum Pensionable Earnings 2025	73,200
Ei Maximum Insurable Earnings 2025	65,700
Ei Maximum Employee Premium 2025	1,090
Capital Gains Inclusion Rate	50
Capital Gains Inclusion Rate Above 250k	66.7

Notes

›Federal tax is the base layer only. Provincial/territorial income tax is additional and varies widely, from 4% in Nunavut to 21% in Quebec on the top bracket. Combined federal + provincial top rates range from ~47% (AB) to ~54% (QC/NS).
›The Basic Personal Amount ($16,129 for 2025) is the federal non-refundable tax credit that reduces the base federal tax payable by 15% x BPA = $2,419. Provincial BPAs differ.
›CPP2 (second CPP enhancement) applies to earnings between the Year's Maximum Pensionable Earnings (YMPE) and a new upper ceiling. It takes effect from 2024 onwards.
›As of the 2024 federal budget, the capital gains inclusion rate increased from 50% to 66.7% for gains above $250,000 per year for individuals. The first $250,000 in annual gains remains at 50% inclusion.
›Quebec residents pay QPP (Quebec Pension Plan) instead of CPP, and QPIP (Quebec Parental Insurance Plan) instead of federal EI. The QPP rate is 5.4% and QPIP has separate rates.

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Current Rates

Parameter	Value
Federal Bracket 1 Rate	15
Federal Bracket 1 Max	57,375
Federal Bracket 2 Rate	20.5
Federal Bracket 2 Min	57,376
Federal Bracket 2 Max	114,750
Federal Bracket 3 Rate	26
Federal Bracket 3 Min	114,751
Federal Bracket 3 Max	158,519
Federal Bracket 4 Rate	29
Federal Bracket 4 Min	158,520
Federal Bracket 4 Max	220,000
Federal Bracket 5 Rate	33
Federal Bracket 5 Min	220,001
Cpp Employee Contribution Rate	5.95
Cpp2 Employee Rate	4
Ei Premium Rate Employee	1.66

Rules & Limits

Parameter	Value
Basic Personal Amount 2025	16,129
Cpp Maximum Pensionable Earnings 2025	71,300
Cpp Basic Exemption	3,500
Cpp Maximum Employee Contribution 2025	4,034
Cpp2 Maximum Pensionable Earnings 2025	73,200
Ei Maximum Insurable Earnings 2025	65,700
Ei Maximum Employee Premium 2025	1,090
Capital Gains Inclusion Rate	50
Capital Gains Inclusion Rate Above 250k	66.7

Notes

›Federal tax is the base layer only. Provincial/territorial income tax is additional and varies widely, from 4% in Nunavut to 21% in Quebec on the top bracket. Combined federal + provincial top rates range from ~47% (AB) to ~54% (QC/NS).

›The Basic Personal Amount ($16,129 for 2025) is the federal non-refundable tax credit that reduces the base federal tax payable by 15% x BPA = $2,419. Provincial BPAs differ.

›CPP2 (second CPP enhancement) applies to earnings between the Year's Maximum Pensionable Earnings (YMPE) and a new upper ceiling. It takes effect from 2024 onwards.

›As of the 2024 federal budget, the capital gains inclusion rate increased from 50% to 66.7% for gains above $250,000 per year for individuals. The first $250,000 in annual gains remains at 50% inclusion.

›Quebec residents pay QPP (Quebec Pension Plan) instead of CPP, and QPIP (Quebec Parental Insurance Plan) instead of federal EI. The QPP rate is 5.4% and QPIP has separate rates.