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Tax Rates -> Current Marginal Tax Rates -> Tax Comparisons by Province -> Top Marginal and Average Tax Rates in Canada
Calculate the Marginal and Average Tax Rates Yourself!
Top Marginal & Average Tax Rates in Canada
The marginal tax rate is the rate of tax on the next dollar of income. The average tax rate is total income tax divided by total income.
The top marginal tax rates are from the combined federal & provincial tax rates for each province, rounded to 1 decimal.
The average tax rates are determined using the Canadian Tax and RRSP Savings Calculator.
The table also shows the average tax rate for a taxpayer earning
 | $100,000 of "other income", and |
| $100,000 of employment income |
The average rate for employment income is lower than for other income due to the tax credits for CPP, EI, and the Canada employment. The average tax rate is calculated based on total income tax including clawbacks, but not including CPP contributions and EI premiums.
The tax rates used are as known on July 23, 2025.
| TaxTips.ca 2025 Top Marginal Tax Rates by Province/Territory |
||||||
| Province/ Territory |
Top
Tax Bracket Begins at |
Top Rate | Avg Rate @$100K Other Income |
Avg Rate @$100K Empl Income |
||
| Other Income |
Eligible Dividends |
Non-Eligible Dividends |
||||
| NL | $1,128,858 | 54.8% | 46.2% | 49.0% | 25.8% | 24.5% |
| NS | 154,650 | 54.0% | 41.6% | 50.0% | 27.5% | 26.1% |
| ON | 220,000 | 53.5% | 39.3% | 47.7% | 21.9% | 20.7% |
| BC | 259,829 | 53.5% | 36.5% | 48.9% | 20.5% | 19.3% |
| QC | 129,590 | 53.3% | 40.1% | 48.7% | 27.3% | 25.6% |
| NB | 190,060 | 52.5% | 32.4% | 46.8% | 25.1% | 23.7% |
| PE | 140,000 | 52.0% | 36.5% | 47.9% | 26.6% | 25.2% |
| MB | 101,200 | 50.4% | 37.8% | 46.7% | 24.8% | 23.4% |
| AB | 362,961 | 48.0% | 34.3% | 42.3% | 21.7% | 20.4% |
| YT | 500,000 | 48.0% | 28.9% | 44.0% | 21.2% | 19.9% |
| SK | 152,750 | 47.5% | 29.6% | 41.3% | 24.1% | 22.7% |
| NT | 168,967 | 47.1% | 28.3% | 36.8% | 19.9% | 18.7% |
| NU | 177,881 | 44.5% | 33.1% | 37.8% | 17.8% | 16.7% |
The top federal tax bracket starts at taxable income of $253,414.
Top rates for capital gains are 50% of the top rates for "other income". The change in the capital gain inclusion rate effective for capital gains realized on or after June 25, 2024 did not happen.
What is Other Income?
Other income includes interest, foreign dividends, employment income, etc. However, the tax rates above do not include CPP or EI costs, deductions or tax credits. Ontario Health Premium is included, as are Quebec health premiums. NT and NU include refundable cost of living credits.
Calculate the Marginal and Average Tax Rates Yourself!
You can calculate marginal and average tax rates at varying levels of capital gains, eligible and non-eligible dividends, and other income using our Basic Canadian Tax Calculator. It provides these rates plus a comparison of taxes payable by province/territory for the current year and past 5 years. You can also compare 2 different scenarios - change the province, the tax year, or just the amounts of each type of income to see the difference in taxable income and taxes payable.
You can also see the marginal tax rates for all income brackets for your province or territory in our Tax Rate Tables.
Revised: July 28, 2025