2026 Tax Year
Canada Tax Brackets
Federal & Alberta income tax rates. Know exactly what you owe.
14%–33%
Federal Tax Range
Last updated: January 2026 · Source: CRA, Alberta.ca
2026 Federal Tax Brackets
The lowest bracket rate was reduced from 15% to 14% in July 2025. All thresholds indexed 2% for inflation.
| Income Range | Tax Rate | Tax on Bracket |
|---|---|---|
| $0 - $58,523 | 14% | Up to $8,193 |
| $58,523 - $117,045 | 20.5% | $12,007 |
| $117,045 - $181,440 | 26% | $16,743 |
| $181,440 - $258,482 | 29% | $22,342 |
| Over $258,482 | 33% | No limit |
Source: Canada Revenue Agency
2026 Alberta Tax Brackets
Alberta introduced a new 8% bracket on the first ~$60,000 in 2025. No provincial sales tax.
| Income Range | Tax Rate | Tax on Bracket |
|---|---|---|
| $0 - $61,200 | 8% | Up to $4,896 |
| $61,200 - $154,259 | 10% | $9,306 |
| $154,259 - $185,111 | 12% | $3,702 |
| $185,111 - $246,813 | 13% | $8,021 |
| $246,813 - $370,220 | 14% | $17,277 |
| Over $370,220 | 15% | No limit |
Source: Government of Alberta
Basic Personal Amount (BPA) 2026
The amount you can earn tax-free before income tax applies.
Federal BPA
$16,452
Phases out between $181,440 and $258,482 for high earners
Alberta BPA
$22,769
Higher than federal - more tax-free income in Alberta
CPP & EI Contributions 2026
CPP (Canada Pension Plan)
EI (Employment Insurance)
Source: CRA - CPP/EI rates
Combined Tax Example: $100,000 Income
This is just income and payroll taxes. It doesn't include GST, property tax, fuel taxes, or other hidden taxes that bring the real rate much higher.
See Where Your Tax Dollars Go
Calculating your tax is just the start. Our interactive tool shows you exactly how your money is spent - from debt interest to equalization payments.
Calculate Your Tax Burden→Frequently Asked Questions
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 the first $61,200; 10% on $61,200 to $154,259; 12% on $154,259 to $185,111; 13% on $185,111 to $246,813; 14% on $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. This is the amount you can earn before paying income tax.
What changed in 2026 federal tax rates?
The lowest federal tax rate was reduced from 15% to 14% effective July 1, 2025. 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). 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.