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Your paycheque is changing in 2026.
Whether you live in Ontario, Alberta, or BC, the new year brings new tax rules. The CRA has indexed federal tax brackets by 2.0% to account for inflation, meaning you can earn more money before hitting a higher tax rate.
However, with the full rollout of the CPP2 (Second Additional Canada Pension Plan), high income earners might see a slight dip in their net pay.
Stop guessing. Use our Canada Tax Calculator 2026 to accurately estimate your after-tax income, visualize your marginal tax rate, and plan your RRSP contributions.
2026 Federal Tax Brackets
The Federal Basic Personal Amount (BPA) for 2026 has increased to $16,452. This means the first $16,452 of your income is effectively tax-free for most Canadians.
Here are the new Canada tax brackets 2026:
| 2026 Taxable Income | Federal Tax Rate |
|---|---|
| $0 up to $58,523 | 14.0% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26.0% |
| $181,440 to $258,482 | 29.0% |
| Over $258,482 | 33.0% |
Note: The lowest federal bracket remains at 14% following the mid-year adjustment in 2025.
CPP2 & EI Max 2026
If you are a high earner searching for a paycheque estimator Canada, you need to account for the "double ceiling" of the CPP.
CPP & CPP2
- Max Pensionable (YMPE): $74,600
- Max Contribution: $4,230.45
- Second Ceiling (CPP2)
- Income Range: $74k - $85k
- Max CPP2 Amount: $416.00
Employment Insurance (EI)
- Max Insurable Earnings: $68,900
- Rate (Outside QC): 1.63%
- Max Annual Premium: $1,123.07
Using our take-home pay calculator Canada automatically deducts these amounts based on your income, so you aren't surprised by a smaller paycheque in January.
Provincial Tax Snapshots
Our income tax calculator Canada 2026 handles all provinces and territories. Here are the key highlights:
Ontario
Lowest bracket 5.05% on first $53,891. Includes Ontario Health Premium calculation.
British Columbia
Lowest bracket 5.06% on first $50,363. Competitive high-income rates.
Alberta
10% tax on first $154,259. High earners (> $370k) face a 15% rate.
Quebec
Includes 16.5% Federal Abatement. Separate provincial return (Revenu Québec).
Manitoba
Basic Personal Amount increases continue. Bracket thresholds indexed.
Saskatchewan
Indexation matches federal CPI. Competitive rates for middle income.
Nova Scotia
Check for updated bracket thresholds. Historic brackets may apply.
New Brunswick
Harmonized brackets. Specific high-income rates apply.
P.E.I.
Ongoing tax system modernization to simplify brackets.
Newfoundland
Adjusted brackets. Deficit reduction levy may apply for high earners.
Territories (YT, NT, NU)
Includes Northern Residents Deduction calculations. Generally lower tax rates than provinces due to high cost of living adjustments.
Maximize Your Refund
Want to lower your 2026 tax bill? Contributing to an RRSP is the most effective way to reduce your taxable income. Use our tool to simulate an RRSP contribution and see your refund grow instantly.
Calculate Tax Refund