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
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 October 5, 2026.
| TaxTips.ca 2026 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 | $1,141,275 | 54.8% | 46.2% | 49.0% | 25.3% | 23.9% |
| NS | 157,124 | 54.0% | 41.6% | 50.0% | 27.1% | 25.7% |
| ON | 220,000 | 53.5% | 39.3% | 47.7% | 21.5% | 20.3% |
| BC | 265,545 | 53.5%** | 36.5% | 48.9% | 20.3% | 19.1% |
| QC | 132,245 | 53.3% | 40.1% | 48.7% | 26.9% | 25.3% |
| PE | 200,000 | 53.0% | 37.9% | 49.1% | 26.2% | 24.7% |
| NB | 193,861 | 52.5% | 32.4% | 46.8% | 24.7% | 23.3% |
| MB | 100,000 | 50.4% | 37.8% | 46.7% | 24.5% | 23.0% |
| AB | 370,220 | 48.0% | 34.3% | 42.3% | 21.3% | 20.0% |
| YT | 500,000 | 48.0% | 28.9% | 44.0% | 20.8% | 19.5% |
| SK | 155,805 | 47.5% | 29.6% | 41.3% | 23.7% | 22.2% |
| NT | 172,346 | 47.1% | 28.3% | 36.8% | 19.5% | 18.3% |
| NU | 181,439 | 44.5% | 33.1% | 37.8% | 17.4% | 16.3% |
** To be increased to 57.5%, the top rate in Canada, if David Eby and the NDP win the October 24th BC election.
The top federal tax bracket starts at taxable income of $258,482.
Top rates for capital gains are 50% of the top rates for "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.
You can calculate marginal and average tax rates at varying levels of capital gains, eligible and non-eligible dividends, and other income using our Detailed Canadian Income Tax Calculator, or our Basic Canadian Tax Calculator.
The Basic Calculator provides these rates plus a comparison of taxes payable by province/territory for the current year and past 5 years, but will not include any deductions or tax credits related to employment income. 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.