Understanding how much income tax you owe in Canada starts with knowing your federal and provincial tax brackets. Canada uses a progressive tax system, meaning you pay different rates on different slices of income. For 2026, the federal government reduced the lowest bracket rate from 15% to 14%, and all thresholds were indexed to inflation. This calculator lets you enter your gross employment income, select your province or territory, and instantly see an estimate of your combined federal and provincial tax payable along with your average and marginal tax rates. All 13 provinces and territories are supported. The estimates include the basic personal amount (BPA) and standard non-refundable credits. Knowing your marginal rate helps you decide whether an RRSP contribution - which saves tax at your marginal rate - makes sense right now. Bookmark this page and run a fresh calculation after any income change.