Canadian Income Tax Calculator for 2026

See an annual income-tax estimate, the slice that contains your next dollar, and how much claimed deductions may change the total.

Free, no email
All provinces and territories
For income earned in 2026

The short answer

Canada uses tax brackets like stacked slices. A higher rate reaches only the income inside its slice. Your effective rate looks back across the whole year. Your marginal rate looks at the next slice. Both belong in the answer.

Uses 2026 tax-return brackets published by the CRA

Your 2026 income

annual amounts

Employment income salary, wages, tips and other T4 employment income

Other ordinary income interest, pension or another fully taxable amount

Province or territory where you expect to live on December 31, 2026

Deductions and tax paid

claimable amounts

RRSP or FHSA deductions use the amount you expect to claim, within your available room

Other income deductions enter only amounts you know are deductible

Income tax already deducted optional; add the year-end total from your slips

Estimated 2026 income tax

$14,662

estimated federal and Ontario income tax for 2026

Estimated 2026 income tax is $14,662. The estimated combined marginal income-tax rate is 29.6%.

Total income$87,000
Taxable income$80,873
Effective income-tax rate16.9%
Combined marginal rate29.6%
Income after income tax$72,338
Tax reduction from deductions$1,483
Possible refund$1,338

Federal income tax−$9,612
Ontario income tax−$5,050
Total income tax−$14,662

Income after income tax

Income tax 16.9%
After income tax 83.1%

Your next dollar

Federal bracket20.5%

Ontario bracket9.15%

First $58,52314.0%

$58,523 of taxable income in this slice
$58,523 to $117,04520.5%

$22,350 of taxable income in this slice
$117,045 to $181,44026.0%

This income does not reach this slice
$181,440 to $258,48229.0%

This income does not reach this slice
Over $258,48233.0%

This income does not reach this slice

This estimates a simple 2026 return with basic personal and employment credits. The deductible enhanced CPP contribution is included behind the scenes. CPP, QPP, EI and QPIP are not included in the income-tax total.

Turn the annual number into each pay

See how income tax, CPP or QPP, EI and workplace deductions could shape a regular deposit.

Decode a paycheque →

Estimate only. Your figures stay in this browser. Use certified tax software for a return and see the disclaimer.

A worked example

An Ontario employee earns $85,000 and has $2,000 of other ordinary income. They expect to claim a $5,000 RRSP or FHSA deduction, and $16,000 of income tax has already been deducted. These are the figures the calculator opens with.

Simple 2026 Ontario income-tax estimate
Line	How it is treated	Amount
Total income	$85,000 employment income plus $2,000 other income	$87,000
Claimed deduction	Reduces taxable income	−$5,000
Enhanced CPP deduction	Calculated from 2026 employment income	−$1,127
Taxable income	Amount placed into the federal and Ontario brackets	$80,873
Federal income tax	After basic employment-related credits	$9,612
Ontario income tax	Includes Ontario surtax, reduction and Health Premium where applicable	$5,050
Estimated total income tax		$14,662

What the withholding comparison means

The $16,000 already deducted is $1,338 more than this simplified tax estimate, so the calculator shows a possible refund. A refund is the difference between tax paid during the year and tax calculated on the completed return. Credits, deductions, investment income and other slips can still change it.

How this estimate works

Income becomes taxable income first

The calculator adds employment income and other ordinary income, then subtracts the RRSP, FHSA and other valid income deductions you enter. It also calculates the deductible enhanced CPP or QPP portions from employment income. Quebec employment income receives the published deduction for workers.

Total income − claimed deductions − deductible enhanced CPP or QPP = taxable income

Each bracket taxes one slice

Federal and provincial or territorial brackets are applied separately. Crossing a threshold changes the rate on the dollars above that threshold. The bracket ladder shows how much taxable income reached each federal slice.

Basic credits reduce the tax

The estimate applies the federal and provincial or territorial basic personal amounts, the federal Canada employment amount, and the usual employment-related credits for base CPP or QPP contributions and EI or QPIP premiums. Ontario surtax and Health Premium, the Ontario tax reduction, the BC tax reduction and the federal Quebec abatement are included.

Payroll contributions stay outside the total

CPP, QPP, CPP2, QPP2, EI and QPIP affect a return, but they are separate from income tax. The headline total therefore contains only federal and provincial or territorial income tax. Use the Paycheque Decoder when the question is how much should reach your account after every statutory deduction.

What is left out

The estimate does not complete a tax return. It leaves out dividends, capital gains, self-employment income, foreign income, tax withheld outside Canada, pension splitting, spouse and dependant amounts, disability and caregiver amounts, tuition transfers, medical expenses, donations, moving expenses, northern deductions, alternative minimum tax, most low-income provincial reductions, refundable credits, benefits, carry-forwards and multi-jurisdiction returns. A refund or balance is therefore a planning signal rather than a filing result.

Official 2026 sources

Rates were checked on August 23, 2026. Government sources are linked directly so the assumptions can be audited.

CRA 2026 tax-return rates and income brackets — federal and provincial or territorial brackets, including the rule that residence on December 31 determines the provincial or territorial table.
Department of Finance report on the 14% federal rate and non-refundable credits — federal brackets, basic personal amount and Canada employment amount.
CRA T4127 2026 formulas — personal amounts, CPP or QPP contribution treatment, EI and provincial calculation details.
British Columbia Budget 2026 tax changes, Newfoundland and Labrador 2026 personal income tax, and Prince Edward Island 2026 personal income tax — enacted or announced full-year changes that differ from some payroll tables.
Revenu Québec 2026 income-tax rates and 2026 indexed amounts.

Ready to file? Use CRA-certified tax software. Quebec residents also file a provincial return with Revenu Québec.

Questions people ask

Does a higher tax bracket apply to all of my income?

No. Each rate applies only to the slice of taxable income inside that bracket. Income below the threshold keeps the lower rate. The federal bracket ladder makes those slices visible.

Can this calculator tell me whether I will get a refund?

It can compare the estimated income tax with the income tax already deducted from your pay. The difference is only a planning estimate because a completed return may include credits, deductions and income this tool does not model.

Why can tax software give me a different answer?

Certified tax software completes the full return. This calculator covers a simple employment-income estimate and leaves out many personal credits, benefits, special income types, carry-forwards and province-specific reductions.

How does an RRSP or FHSA deduction change the estimate?

A valid deduction reduces taxable income. The tax change depends on the federal and provincial or territorial brackets the deducted dollars would otherwise occupy. Your available contribution room still governs what you may deduct.

Does the total include CPP, QPP, EI or QPIP?

No. Those payroll contributions and premiums are separate from income tax. Their related credits and deductible enhanced CPP or QPP portions are included behind the scenes where the simple estimate requires them.

Does this calculator save or send my information?

Your figures stay in your own browser so the tool can remember them on this device. Nothing is transmitted, no account is created and no email address is requested.