From January 1, 2026 the lowest federal income tax rate is 14%, down from 15% in 2024 and 14.5% for 2025.
2026 federal brackets
- 14% up to $58,523
- 20.5% from $58,523 to $117,045
- 26% from $117,045 to $181,440
- 29% from $181,440 to $258,482
- 33% above $258,482
Payroll deductions
- CPP: 5.95% on earnings between $3,500 and $74,600 (max $4,230.45)
- CPP2: 4% on earnings from $74,600 to $85,000 (max $416)
- EI: 1.63% on insurable earnings up to $68,900 (max $1,123.07)
Estimate your 2026 net pay with the Canada calculator.
Work out your own take-home pay with the Canada tax calculator →Related: Canada salary after tax table · More tax news
This article is general information, not tax advice. Rates come from official government sources for the tax year shown.