Canada uses a progressive tax system. You don't pay one flat rate on all your income - you pay different rates on different portions. The federal government reduced the lowest rate from 15% to 14% effective for 2026. All bracket thresholds increased by 2% for inflation. The five federal brackets for 2026 are: - Up to $58,523: 14% - $58,523 to $117,045: 20.5% - $117,045 to $181,440: 26% - $181,440 to $258,482: 29% - Over $258,482: 33% Every province and territory has its own tax brackets that apply in addition to federal tax. For 2026, the federal basic personal amount is $16,452. Our tax calculator on Mintfile lets you estimate your federal and provincial tax for any income and province.