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Reference · 2026 tax year

Canada Tax Brackets

Federal and Alberta income tax rates, the basic personal amounts, CPP and EI, and a worked example. Every figure from the CRA’s and Alberta’s own tables.

By Updated

What are the 2026 federal tax brackets?

14%–33%

Federal income tax runs from 14% on the first $58,523 to 33% on income over $258,482. Alberta adds 8% to 15%, with no sales tax.

Year
2026
In effect from
January 1, 2026
Official source
Canada Revenue Agency: Current year tax rates and income brackets (2026)
Verified
September 28, 2026
2026 income tax rates, federal and AlbertaThe federal rate climbs from 14% to 33% in 5 steps; Alberta’s from 8% to 15% in 6.

Sources

Canada Revenue Agency

2026 federal tax brackets

2026 federal brackets
2026 federal income tax brackets
IncomeRateMost it adds
$0 to $58,52314%Up to $8,193
$58,523 to $117,04520.5%Up to $11,997
$117,045 to $181,44026%Up to $16,743
$181,440 to $258,48229%Up to $22,342
Over $258,48233%No limit

Sources

The lowest bracket rate was cut from 15% to 14% on July 1, 2025. All thresholds were indexed 2% for inflation.

Government of Alberta

2026 Alberta tax brackets

2026 Alberta brackets
2026 Alberta income tax brackets
IncomeRateMost it adds
$0 to $61,2008%Up to $4,896
$61,200 to $154,25910%Up to $9,306
$154,259 to $185,11112%Up to $3,702
$185,111 to $246,81313%Up to $8,021
$246,813 to $370,22014%Up to $17,277
Over $370,22015%No limit

Sources

Alberta introduced a new 8% bracket on the first $60,000 in 2025 (Bill 39, the Financial Statutes Amendment Act, 2025), indexed to $61,200 for 2026. There is no provincial sales tax.

Tax-free income

Basic personal amount 2026

The amount you can earn before income tax applies. It works as a credit at the lowest rate, so it cancels the tax on your first dollars of income.

The federal amount phases out between $181,440 and $258,482 of net income for high earners. Alberta’s does not.

The basic personal amountsAlberta’s is $6,317 higher than the federal amount.
  1. Alberta$22,769
  2. Federalphases out from $181,440$16,452

Sources

Payroll

CPP and EI contributions 2026

Employees contribute 5.95% of pensionable earnings between $3,500 and $74,600. CPP2 adds 4% on earnings between $74,600 and $85,000. Employers match both.

EI premiums are 1.63% of insurable earnings up to $68,900. Employers pay 1.4 times the employee rate (2.282%), up to $1,572.30.

The most an employee pays in a yearCPP’s two tiers together take up to $4,646.45; EI up to $1,123.07.
  1. CPP, first tier5.95% to $74,600$4,230.45
  2. CPP24% from $74,600 to $85,000$416.00
  3. EI1.63% to $68,900$1,123.07

Sources

  • Canada Revenue Agency, CPP contribution rates, maximums and exemptions (Table "CPP contribution rates, maximums and exemptions", 2026 row (maximum pensionable earnings, basic exemption, maximum contributory earnings, rate, employee and employer maximum, self-employed maximum)). Checked September 28, 2026.
  • Canada Revenue Agency, T4127 Payroll Deductions Formulas, 122nd Edition, effective January 1, 2026 (Chapter 8, Table 8.3 Canada Pension Plan / Quebec Pension Plan 2026 contribution rates and amounts, row CPP (Canada except QC); Chapter 8, Table 8.6 Second additional Canada Pension Plan / Quebec Pension Plan 2026 rates and amounts, row CPP (Canada except QC); Chapter 8, Table 8.7 Employment Insurance 2026 rates and amounts, row Canada except QC (employer contribution rate 0.02282)). Checked September 28, 2026.
  • Canada Revenue Agency, Second additional CPP (CPP2) contribution rates and maximums (Table "CPP2 contribution rates and maximums", 2026 row (additional maximum pensionable earnings, rate, employee and employer maximum, self-employed maximum)). Checked September 28, 2026.
  • Canada Revenue Agency, EI premium rates and maximums (Table "EI premium rates and maximums", 2026 federal row (maximum annual insurable earnings, rate, employee and employer maximums); table legend for Rate: "The employer's premium will be 1.4 times this amount."). Checked September 28, 2026.

Worked example

What comes off a $100,000 salary

$100,000 in Alberta, 2026: the four deductionsTogether they take $25,541.50, an effective rate of 25.5%.
  1. Federal income tax$13,301.60
  2. Alberta income tax$6,470.38
  3. CPP contributions (payroll)$4,646.45
  4. EI premiums (payroll)$1,123.07
  5. Total deductions$25,541.50
Computed to the cent by the same engine as our calculator, with the CRA’s 2026 method.

Sources

  • Canada Revenue Agency, Current year tax rates and income brackets (2026) (Section "Federal rate for 2026"; Section "Alberta rate: 2026"). Checked September 28, 2026.
  • Canada Revenue Agency, T4127 Payroll Deductions Formulas, 122nd Edition, effective January 1, 2026 (Chapter 8, Table 8.1 Rates (R, V), income thresholds (A), and constants (K, KP) for 2026, rows Federal A and R; Chapter 8, Table 8.1 Rates (R, V), income thresholds (A), and constants (K, KP) for 2026, rows AB A and V; Chapter 8, Table 8.3 Canada Pension Plan / Quebec Pension Plan 2026 contribution rates and amounts, row CPP (Canada except QC); Chapter 8, Table 8.6 Second additional Canada Pension Plan / Quebec Pension Plan 2026 rates and amounts, row CPP (Canada except QC); Chapter 8, Table 8.7 Employment Insurance 2026 rates and amounts, row Canada except QC (employer contribution rate 0.02282)). Checked September 28, 2026.
  • Government of Alberta, Personal income tax (Overview, Table 1. 2025 and 2026 tax brackets). Checked September 28, 2026.
  • Canada Revenue Agency, CPP contribution rates, maximums and exemptions (Table "CPP contribution rates, maximums and exemptions", 2026 row (maximum pensionable earnings, basic exemption, maximum contributory earnings, rate, employee and employer maximum, self-employed maximum)). Checked September 28, 2026.
  • Canada Revenue Agency, Second additional CPP (CPP2) contribution rates and maximums (Table "CPP2 contribution rates and maximums", 2026 row (additional maximum pensionable earnings, rate, employee and employer maximum, self-employed maximum)). Checked September 28, 2026.
  • Canada Revenue Agency, EI premium rates and maximums (Table "EI premium rates and maximums", 2026 federal row (maximum annual insurable earnings, rate, employee and employer maximums); table legend for Rate: "The employer's premium will be 1.4 times this amount."). Checked September 28, 2026.

This is income and payroll tax only. It leaves out GST, property tax, fuel taxes and the other taxes that bring the real rate higher.

Questions people ask

What are the federal tax brackets for 2026 in Canada?

The 2026 federal tax brackets are: 14% on income up to $58,523; 20.5% on income from $58,523 to $117,045; 26% on income from $117,045 to $181,440; 29% on income from $181,440 to $258,482; and 33% on income over $258,482.

What are the Alberta tax brackets for 2026?

Alberta has 6 tax brackets for 2026: 8% on income up to $61,200; 10% on income from $61,200 to $154,259; 12% on income from $154,259 to $185,111; 13% on income from $185,111 to $246,813; 14% on income from $246,813 to $370,220; and 15% on income over $370,220.

What is the basic personal amount for 2026?

The federal basic personal amount (BPA) for 2026 is $16,452. Alberta's BPA is $22,769. It works as a credit at the lowest tax rate, so in effect it is the amount you can earn before income tax applies.

What changed in 2026 federal tax rates?

The lowest federal tax rate fell from 15% to 14% on July 1, 2025, so 2025 was taxed at a blended 14.5%. 2026 is the first full year at the 14% rate. Bracket thresholds were also indexed by 2% for inflation.

How much are CPP contributions in 2026?

In 2026, employees contribute 5.95% of pensionable earnings between $3,500 and $74,600 (max $4,230.45). CPP2 adds 4% on earnings between $74,600 and $85,000 (max $416.00). Total maximum: $4,646.45.

What are EI premiums for 2026?

The 2026 EI premium rate is 1.63% of insurable earnings up to $68,900. Maximum employee premium is $1,123.07. Employers pay 1.4x the employee rate.

What changed

The dates behind the rates

The lowest federal tax rate fell from 15% to 14% on July 1, 2025, so 2025 was taxed at a blended 14.5%. 2026 is the first full year at the 14% rate.

How the rates got here
  1. Alberta’s new 8% bracket on the first $60,000 (Bill 39, the Financial Statutes Amendment Act, 2025).
  2. The lowest federal rate cut from 15% to 14%; 2025 taxed at a blended 14.5%.
  3. The first full year at 14%. Thresholds indexed 2%.

Sources

  • Canada Revenue Agency, Last year tax rates and income brackets (2025) (Section "Federal rate for 2025": "The federal tax rate decreased from 15% to 14% on July 1, 2025, making the tax rate 14.5% for 2025."; Section "Alberta rate: 2025" (8% on $0 to $60,000)). Checked September 28, 2026.
  • Department of Finance Canada, Budget 2025, Tax Measures: Supplementary Information (Section "Top-Up Tax Credit": first rate reduced "from 15 per cent to 14.5 per cent for the 2025 taxation year, and to 14 per cent for the 2026 and subsequent taxation years"). Checked September 28, 2026.
  • Alberta King's Printer, Financial Statutes Amendment Act, 2025, SA 2025 c 9 (Bill 39), assented to May 15, 2025 (Section 2(3), page 5, replacing Alberta Personal Income Tax Act s. 6.1(1)(a)(i) and adding (i.1): 8.0% of taxable income up to $60 000, then 10.0%). Checked September 28, 2026.
  • Government of Alberta, Personal income tax (Overview: "Effective January 1, 2025, we introduced a new personal income tax bracket of 8% on the first $60,000 of income."). Checked September 28, 2026.