Canada Income Tax Brackets
Tax System Overview
System: Progressive (marginal)
Authority: Canada Revenue Agency (CRA)
Law: Income Tax Act
Canada taxes on a calendar year basis. The Basic Personal Amount (BPA) is approximately C$15,705, meaning income below this is tax-free. Provincial taxes are added on top of federal rates.
Key Deductions & Allowances
Basic Personal Amount of ~C$15,705 (federal). RRSP contributions (up to 18% of income, max ~C$31,560). Childcare expenses, moving expenses, and union dues are also deductible.
Canada Income Tax Brackets
Current tax rates for Canada. Progressive (marginal) system.
| Income Range | Tax Rate |
|---|---|
| C$0 – C$55,867 | 15% |
| C$55,868 – C$111,733 | 20.5% |
| C$111,734 – C$154,906 | 26% |
| C$154,907 – C$220,000 | 29% |
| C$220,001+ | 33% |
Additional Taxes & Contributions
Beyond income tax, Canada workers may pay these additional charges.
| Tax / Contribution | Rate | Notes |
|---|---|---|
| Provincial income tax | 4–21% | Varies by province; Quebec is highest |
| CPP contributions | 5.95% | On income C$3,500–C$68,500 |
| EI premiums | 1.63% | On insurable earnings up to C$63,200 |
Effective Tax Rates by Income
Estimated federal/national income tax only. Shows how effective rates differ from marginal rates.
| Annual Income | Est. Tax | Effective Rate |
|---|---|---|
| C$40,000 | C$3,644 | 9.1% |
| C$60,000 | C$6,644 | 11.1% |
| C$80,000 | C$10,744 | 13.4% |
| C$100,000 | C$15,594 | 15.6% |
| C$150,000 | C$28,244 | 18.8% |
Estimates based on standard deductions/allowances. Actual tax depends on personal circumstances, filing status, and applicable credits.
About Canada's Tax System
Canada uses a progressive federal income tax system with 5 brackets ranging from 15% to 33%. Provincial and territorial governments add their own income tax on top, resulting in combined marginal rates of 20–54%.
The Basic Personal Amount (BPA) of ~C$15,705 ensures the first portion of income is tax-free. Canadians also contribute to CPP (Canada Pension Plan) and EI (Employment Insurance) through payroll deductions.
RRSP contributions are a key tax planning tool – contributions reduce taxable income dollar for dollar, up to the annual limit.
Tax Brackets by Country
Compare income tax systems across different countries.
United States
United Kingdom
Australia
New Zealand
Germany
India
Ireland
Singapore
South Africa
Japan
PhilippinesFrequently Asked Questions
15% (up to C$55,867), 20.5% (C$55,868–C$111,733), 26% (C$111,734–C$154,906), 29% (C$154,907–C$220,000), and 33% (above C$220,000).
Yes. Each province/territory has its own tax brackets. Combined federal + provincial rates range from about 20% (lowest bracket in Alberta) to over 54% (top bracket in Nova Scotia).
The federal BPA is approximately C$15,705 for 2025. Income below this amount is effectively tax-free.
CPP (Canada Pension Plan) contributions are 5.95% of pensionable earnings. EI (Employment Insurance) premiums are 1.63% of insurable earnings. Both are payroll deductions.