2026 Brackets, Credits and Rules
Provincial and territorial tax brackets 2026: every province compared
2026 income tax brackets and rates for every Canadian province and territory, combined first-bracket rates, Ontario's surtax and Health Premium, and how Quebec differs.
Every province and territory except Quebec calculates its income tax on the federal return, on its own Form 428, using its own brackets and credits. For 2026 the lowest provincial rates range from 4% in Nunavut and 5.05% in Ontario to 10.8% in Manitoba, and the top rates from 11.5% in Nunavut to 21.8% in Newfoundland and Labrador (Quebec's top rate is 25.75%, on its own return). You pay the tax of the province or territory where you lived on December 31, 2026, which matters if you move during the year.
Use this guide with the federal brackets and the 2026 overview. Rates below are copied from the CRA's 2026 rates page; always check the current page before filing. This is general information, not tax advice.
First-bracket rates and combined rates for 2026
The first bracket is where most of the population's income sits, so it is the best quick comparison. Combined rate = federal 14% + provincial first rate.
| Province or territory | First provincial bracket (2026) | Provincial rate | Combined with federal 14% |
|---|---|---|---|
| Newfoundland and Labrador | up to $44,678 | 8.7% | 22.7% |
| Prince Edward Island | up to $33,928 | 9.5% | 23.5% |
| Nova Scotia | up to $30,995 | 8.79% | 22.79% |
| New Brunswick | up to $52,333 | 9.4% | 23.4% |
| Ontario | up to $53,891 | 5.05% | 19.05% |
| Manitoba | up to $47,564 | 10.8% | 24.8% |
| Saskatchewan | up to $54,532 | 10.5% | 24.5% |
| Alberta | up to $61,200 | 8% | 22% |
| British Columbia | up to $50,363 | 5.6% | 19.6% |
| Yukon | up to $58,523 | 6.4% | 20.4% |
| Northwest Territories | up to $53,003 | 5.9% | 19.9% |
| Nunavut | up to $55,801 | 4% | 18% |
A low first rate is not the whole story: each province also sets its own basic personal amount and credits. Alberta, for instance, has a much higher personal amount than most provinces, which can outweigh its 8% rate at modest incomes. Ontario's 2026 basic personal amount is $12,989; other provinces publish theirs on their Form 428 and in the CRA payroll tables.
Full 2026 brackets by province
Ontario: 5.05% to $53,891; 9.15% to $107,785; 11.16% to $150,000; 12.16% to $220,000; 13.16% above.
British Columbia: 5.6% to $50,363; 7.7% to $100,728; 10.5% to $115,648; 12.29% to $140,430; 14.7% to $190,405; 16.8% to $265,545; 20.5% above.
Alberta: 8% to $61,200; 10% to $154,259; 12% to $185,111; 13% to $246,813; 14% to $370,220; 15% above.
Saskatchewan: 10.5% to $54,532; 12.5% to $155,805; 14.5% above.
Manitoba: 10.8% to $47,564; 12.75% to $101,200; 17.4% above.
New Brunswick: 9.4% to $52,333; 14% to $104,666; 16% to $193,861; 19.5% above.
Nova Scotia: 8.79% to $30,995; 14.95% to $61,991; 16.67% to $97,417; 17.5% to $157,124; 21% above.
Prince Edward Island: 9.5% to $33,928; 13.47% to $65,820; 16.6% to $106,890; 17.62% to $142,520; 19% to $200,000; 20% above.
Newfoundland and Labrador: 8.7% to $44,678; 14.5% to $89,354; 15.8% to $159,528; 17.8% to $223,340; 19.8% to $285,319; 20.8% to $570,638; 21.3% to $1,141,275; 21.8% above.
Yukon: 6.4% to $58,523; 9% to $117,045; 10.9% to $181,440; 12.8% to $500,000; 15% above.
Northwest Territories: 5.9% to $53,003; 8.6% to $106,009; 12.2% to $172,346; 14.05% above.
Nunavut: 4% to $55,801; 7% to $111,602; 9% to $181,439; 11.5% above.
Ontario's two extras: surtax and Health Premium
Ontario adds two charges that are easy to miss when you only look at brackets:
- Ontario surtax. Once your basic Ontario tax (after Ontario credits) exceeds a first threshold, a surtax of 20% applies to the excess, and a further 36% applies above a second threshold. Both thresholds are indexed each year; for 2026 the CRA payroll tables use $5,818 and $7,446 of Ontario basic tax. In practice the surtax starts to bite somewhere in the high five figures of taxable income and raises Ontario's effective top rate from 13.16% to about 20.53%, which is how the combined top rate reaches 53.53%.
- Ontario Health Premium. A separate amount added to Ontario tax, from $0 at taxable income of $20,000 or less up to $900 above about $200,600. It is $300 from $25,000 to $36,000, $450 from $38,500 to $48,000, $600 from $48,600 to $72,000 and $750 from $72,600 to $200,000, with short phase-in zones in between (6 cents per extra dollar in the lower zones, 25 cents in the upper ones).
Illustrative example: an Ontario employee with taxable income of $74,273 has Ontario tax of $4,586.45 before credits, $890.39 of Ontario credits (BPA, CPP and EI at 5.05%), no surtax, and a $750 Health Premium, for $4,446.06 in total. The full gross-to-net calculation is in the take-home pay guide.
Moving provinces and other residence rules
| Situation | Which province taxes you |
|---|---|
| Moved from Alberta to Ontario in August 2026 | Ontario, for the whole year's income (residence on December 31) |
| Lived in Quebec, worked in Ottawa | Quebec; an Ontario employer normally withholds no Quebec tax, so you may owe Revenu Québec at filing and may need Quebec instalments |
| Lived in New Brunswick, moved to Quebec on December 15 | Quebec, so you file a TP-1 for 2026 |
| Self-employed with an office in two provinces | Business income is allocated between them using Form T2203 |
| Left Canada during 2026 | Depends on your residence ties and the date you became a non-resident; special rules apply (consult a professional) |
Because the December 31 rule applies to the whole year, the timing of a move can change your tax. It must be a genuine change of residence; the CRA looks at where your home, spouse and dependants are.
Frequently asked questions
Which province has the lowest tax?
There is no single answer. Nunavut and Ontario have low first-bracket rates, Alberta has a high personal amount and a flatter structure, and the ranking changes with income level and family situation. Compare total tax at your income rather than one rate.
Do provinces use the same income definition?
Yes, outside Quebec provincial tax is based on the same taxable income as federal tax, but credits, surtaxes and low-income reductions differ by province.
Why is my province's credit worth less than the federal one?
Provincial non-refundable credits are calculated at the lowest provincial rate. In Ontario that is 5.05%, so the $12,989 basic personal amount is worth about $656, compared with $2,303 for the federal amount at 14%.
Where do I find my province's 2026 credit amounts?
On the provincial Form 428 in the 2026 tax package, and in the CRA payroll formulas (T4127) published each January.
Official sources
- CRA: tax rates and income brackets for 2026 — federal, provincial and territorial rates
- CRA: 2026 indexation and benefit amounts — federal credit amounts
- Government of Ontario — Ontario tax credits and the Health Premium
- Revenu Québec — Quebec rates (not on the CRA page)
