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 up to C$16,129 for 2025, meaning income below this is effectively tax-free. From 1 July 2025, the lowest federal rate was cut from 15% to 14%. Provincial taxes are added on top of federal rates.
Key Deductions & Allowances
Basic Personal Amount of up to C$16,129 (federal, 2025). 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
2025 calendar year tax year rates for Canada. Progressive (marginal) system.
| Income Range | Tax Rate |
|---|---|
| C$0 – C$57,375 | 15% → 14% from 1 July 2025 (14.5% average for 2025) |
| C$57,376 – C$114,750 | 20.5% |
| C$114,751 – C$177,882 | 26% |
| C$177,883 – C$253,414 | 29% |
| C$253,415+ | 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$71,300 (2025); CPP2 of 4% up to C$81,200 |
| EI premiums | 1.64% | On insurable earnings up to C$65,700 (2025) |
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$3,461 | 8.7% |
| C$60,000 | C$6,519 | 10.9% |
| C$80,000 | C$10,619 | 13.3% |
| C$100,000 | C$14,719 | 14.7% |
| C$150,000 | C$26,907 | 17.9% |
Estimates based on standard deductions/allowances. Actual tax depends on personal circumstances, filing status, and applicable credits.
Jurisdiction, Tax Year & Data Sources
| Jurisdiction | Canada |
| Tax year shown | 2025 calendar year |
| Default taxpayer type | Single resident employee |
| Included in estimates | Federal income tax only, after Basic Personal Amount |
| Not included | Provincial/territorial tax, CPP, EI |
| Official source | Canada Revenue Agency (CRA) |
| Last reviewed | 2026-06 |
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 up to C$16,129 (2025) ensures the first portion of income is effectively 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
For 2025: 15% (14% from 1 July 2025) up to C$57,375, 20.5% (C$57,376–C$114,750), 26% (C$114,751–C$177,882), 29% (C$177,883–C$253,414), and 33% above C$253,414.
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 up to C$16,129 for 2025 (it phases down for incomes above C$177,882). Income below this amount is effectively tax-free.
CPP (Canada Pension Plan) contributions are 5.95% of pensionable earnings up to C$71,300 (2025). EI (Employment Insurance) premiums are 1.64% of insurable earnings up to C$65,700 (2025). Both are payroll deductions.