Canada Income Tax Calculator 2026
Calculate your Canadian taxes: Federal + Provincial (Ontario) + Social Contributions (CPP/EI)
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0 CAD
Effective rate: 0%
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~8.6% (CPP + EI)
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Monthly: 0 CAD
Income Distribution
Effective total rate: 0%
Complete Guide to Canadian Taxation
Canada has a unique two-tier tax system: federal and provincial/territorial. Unlike many countries, provincial tax rates vary significantly from province to province. Tax residency is determined by your significant residential ties (home, family, property) rather than just the number of days spent in the country.
Federal Tax Brackets 2026
Federal income tax uses a progressive marginal rate system. Only the portion of income within each bracket is taxed at the corresponding rate:
- $0 - $55,867: 15%
- $55,867 - $111,733: 20.5%
- $111,733 - $173,205: 26%
- $173,205 - $246,752: 29%
- Over $246,752: 33%
Provincial Taxes - Major Examples
Each province applies its own tax brackets on top of federal tax:
Ontario
5.05% - 13.16%
Most populous province
Quebec
14% - 25.75%
Highest rates + QPP
British Columbia
5.06% - 20.5%
Vancouver, Victoria
Note: Alberta has the lowest rates (10% - 15%), while Quebec has the highest but offers more public services.
Mandatory Social Contributions
All Canadian employees pay contributions for retirement and employment insurance:
- CPP (5.95%): Canada Pension Plan - mandatory contribution on earnings up to $68,500. The employer also pays 5.95%.
- QPP in Quebec (6.4%): Quebec has its own pension plan, slightly higher than CPP.
- EI (1.63%): Employment Insurance - capped at $63,200 in earnings. Provides protection in case of job loss.
Tax Credits and Deductions
Basic Personal Amount
- Federal: $15,705 (2026) - no federal tax on this portion
- Provincial: varies by province (~$11,000 - $21,000)
- Result: the first ~$15,000 is effectively tax-free
Child and Family Credits
- Canada Child Benefit (CCB): up to $7,437/year per child under 6
- Children aged 6-17: up to $6,275/year per child
- Amounts gradually reduced for family incomes over $34,863
- Child Care Expense Credit: up to $8,000 deductible per child
Tax-Advantaged Savings Strategies
RRSP - Registered Retirement Savings Plan
- 2026 contribution limit: 18% of income (max ~$31,560)
- Contributions are 100% tax-deductible
- Tax-sheltered growth until withdrawal
- Ideal for deferring tax to retirement (lower marginal rate)
- HBP: withdraw up to $35,000 tax-free to buy a first home
TFSA - Tax-Free Savings Account
- 2026 limit: ~$7,000 (cumulative since 2009: ~$95,000)
- Contributions NOT tax-deductible, but withdrawals are 100% tax-free
- Capital gains, dividends, interest: never taxed
- Full flexibility: withdraw anytime without penalty
- Ideal for short/medium-term savings and tax-free retirement income
RESP - Education Savings
- Government grant (CESG): 20% on the first $2,500/year (max $500/year)
- Lifetime grant maximum: $7,200 per child
- Tax-sheltered growth
- Withdrawals taxed in the student's hands (usually low income)
Key Dates and Obligations
- April 30: annual tax return deadline (T1 General)
- June 15: deadline for self-employed (but payment still due April 30)
- March 1: RRSP contribution deadline for the previous tax year
- Late penalty: 5% of balance owing + 1%/month (max 12 months)
Canada vs France Comparison
| Criteria | France | Canada (Ontario) |
|---|---|---|
| Max federal rate | 45% | 33% fed + 13.16% prov |
| Social contributions | ~22% employee | ~7.6% employee |
| Deductible retirement savings | PER (~10% income) | RRSP (18% income) |
| Tax-free savings | Livret A (limited) | TFSA ($95,000+) |
| Healthcare system | National + supplemental | Public provincial |
| Child benefits | Means-tested | Universal (CCB) |
Canada combines federal income tax with variable provincial taxes. Compare with English-speaking economies and France for francophone expats.