Canada Tax Rates 2026: Federal, Provincial, Corporate & Capital Gains Tax
Canada taxes individuals through federal and provincial or territorial income taxes. Corporations generally pay federal corporate income tax plus provincial or territorial corporate tax. This page summarises the principal 2026 rates and current federal rules, with links to official Canadian tax authorities.
Updated: 2 September 2026.
Canada Federal Personal Income Tax Rates - 2026
| 2026 federal taxable income | Federal rate |
|---|---|
| $0 to $58,523 | 14% |
| $58,523.01 to $117,045 | 20.5% |
| $117,045.01 to $181,440 | 26% |
| $181,440.01 to $258,482 | 29% |
| Over $258,482 | 33% |
The 2026 first federal bracket rate is 14%. Provincial or territorial tax applies in addition to federal tax.
Provincial and Territorial Personal Income Tax Rates - 2026
The following table summarises the statutory provincial and territorial brackets for the 2026 taxation year. The province or territory of residence on December 31 generally determines the applicable provincial or territorial system.
| Province or territory | 2026 brackets and rates |
|---|---|
| Alberta | Up to $61,200: 8%; $61,200.01-$154,259: 10%; $154,259.01-$185,111: 12%; $185,111.01-$246,813: 13%; $246,813.01-$370,220: 14%; over $370,220: 15% |
| British Columbia | Up to $50,363: 5.6%; $50,363.01-$100,728: 7.7%; $100,728.01-$115,648: 10.5%; $115,648.01-$140,430: 12.29%; $140,430.01-$190,405: 14.7%; $190,405.01-$265,545: 16.8%; over $265,545: 20.5% |
| Manitoba | Up to $47,564: 10.8%; $47,564.01-$101,200: 12.75%; over $101,200: 17.4% |
| New Brunswick | Up to $52,333: 9.4%; $52,333.01-$104,666: 14%; $104,666.01-$193,861: 16%; over $193,861: 19.5% |
| Newfoundland and Labrador | Up to $44,678: 8.7%; $44,678.01-$89,354: 14.5%; $89,354.01-$159,528: 15.8%; $159,528.01-$223,340: 17.8%; $223,340.01-$285,319: 19.8%; $285,319.01-$570,638: 20.8%; $570,638.01-$1,141,275: 21.3%; over $1,141,275: 21.8% |
| Northwest Territories | Up to $53,003: 5.9%; $53,003.01-$106,009: 8.6%; $106,009.01-$172,346: 12.2%; over $172,346: 14.05% |
| Nova Scotia | Up to $30,995: 8.79%; $30,995.01-$61,991: 14.95%; $61,991.01-$97,417: 16.67%; $97,417.01-$157,124: 17.5%; over $157,124: 21% |
| Nunavut | Up to $55,801: 4%; $55,801.01-$111,602: 7%; $111,602.01-$181,439: 9%; over $181,439: 11.5% |
| Ontario | Up to $53,891: 5.05%; $53,891.01-$107,785: 9.15%; $107,785.01-$150,000: 11.16%; $150,000.01-$220,000: 12.16%; over $220,000: 13.16% |
| Prince Edward Island | Up to $33,928: 9.5%; $33,928.01-$65,820: 13.47%; $65,820.01-$106,890: 16.6%; $106,890.01-$142,520: 17.62%; $142,520.01-$200,000: 19%; over $200,000: 20% |
| Quebec | Up to $54,345: 14%; $54,345.01-$108,680: 19%; $108,680.01-$132,245: 24%; over $132,245: 25.75% |
| Saskatchewan | Up to $54,532: 10.5%; $54,532.01-$155,805: 12.5%; over $155,805: 14.5% |
| Yukon | Up to $58,523: 6.4%; $58,523.01-$117,045: 9%; $117,045.01-$181,440: 10.9%; $181,440.01-$500,000: 12.8%; over $500,000: 15% |
Quebec Income Tax Rates - 2026
Quebec administers its own provincial personal income tax. Its 2026 rates are already included in the table above: 14% up to $54,345; 19% from $54,345.01 to $108,680; 24% from $108,680.01 to $132,245; and 25.75% above $132,245.
Corporate Income Tax Rates in Canada
The federal basic Part I corporate tax rate is reduced through the federal abatement and general tax reduction. The resulting general federal corporate tax rate is 15%. A Canadian-controlled private corporation that qualifies for the federal small business deduction generally pays a 9% federal rate on qualifying active business income within the applicable business limit.
| Federal corporate category | Net federal rate |
|---|---|
| General corporate income | 15% |
| Qualifying CCPC small-business income | 9% |
| Qualifying zero-emission technology manufacturing income | Special reduced federal rates may apply |
Provincial and territorial corporate taxes apply in addition. Rates and small-business limits differ by jurisdiction, so the combined rate must be calculated for the relevant province or territory.
Capital Gains Tax in Canada - Current 2026 Position
Canada does not impose a separate flat capital gains tax. Instead, the taxable portion of a capital gain is included in income and taxed at the taxpayer's applicable income tax rates.
The federal government confirmed in Budget 2025 that it would not proceed with the proposed increase in the capital gains inclusion rate. Accordingly, the longstanding one-half (50%) inclusion rate continues to be the general current rule, subject to specific exemptions and special rules.
Net capital losses are generally available to carry back three years and forward indefinitely, subject to the Income Tax Act rules. The principal residence exemption can shelter qualifying gains on a taxpayer's principal residence.
Tax Deducted at Source / Non-Resident Withholding Tax in Canada
For income taxable under Part XIII of the Income Tax Act, the general statutory withholding rate is 25%. The rate may be reduced or eliminated by the Income Tax Act or an applicable Canadian tax treaty.
Common Part XIII payments include dividends, rents, royalties, certain management fees and other specified Canadian-source passive income. The payer or withholding agent is responsible for applying the correct rate and remitting the tax to the Canada Revenue Agency.
Business Losses, CCA, Transfer Pricing and Thin Capitalisation
Non-capital losses
Non-capital losses arising in a taxation year ending after 2005 can generally be carried back 3 years and forward 20 years, subject to special rules and restrictions.
Capital cost allowance (CCA)
Canadian tax depreciation is generally claimed through the capital cost allowance system. The applicable CCA class, rate and method depend on the asset. The old page's broad fixed-rate examples should not be treated as universal depreciation rates.
Transfer pricing
Canada's transfer-pricing rules apply to relevant cross-border transactions between a Canadian taxpayer and non-arm's-length nonresidents. Transactions must reflect arm's-length terms and conditions. Contemporaneous documentation is required in prescribed circumstances, and the CRA can adjust non-arm's-length pricing and impose penalties where statutory requirements are not met.
Thin capitalisation and interest limitation
Canada retains thin-capitalisation rules for certain debts owing to specified nonresidents, including the traditional 1.5:1 debt-to-equity limit in relevant cases. Modern interest deductibility may also be affected by the separate excessive interest and financing expenses limitation (EIFEL) rules. Both regimes should be considered where a Canadian taxpayer has significant related-party or cross-border financing.
Consolidated corporate returns
Canada generally does not permit a group of corporations to file one consolidated income tax return. Each corporation normally files its own T2 return, although specific inter-corporate tax rules may apply.
Canadian Individual Income Tax Return Deadlines
The CRA's normal filing deadline for most individuals is April 30 of the following year. For self-employed individuals, the filing deadline is generally June 15, although any balance owing is generally due by April 30. When a due date falls on a weekend or a CRA-recognized public holiday, the CRA applies its next-business-day rule.
For the 2026 taxation year, the return is filed in 2027. Taxpayers should verify the CRA's 2027 filing calendar when it is published for the exact operational dates and any special extensions.