Taxes are an inescapable part of life in Canada. Many people don’t closely track the federal and provincial tax brackets that determine how much tax they owe. Yet knowing which brackets apply to your income is essential for estimating your 2023 tax liability—especially if you’re self-employed or earning money from a side gig and responsible for calculating your own payments.
Understanding federal and provincial tax brackets can also help you decide whether to increase registered retirement savings plan (RRSP) contributions. Higher RRSP contributions can reduce your taxable income and may eliminate any balance owing on your notice of assessment or even produce a refund.
How do tax brackets work in Canada?
Tax brackets specify the percentage of tax applied to different slices of annual taxable income. Canada uses a progressive tax system: lower-income earners pay a lower tax rate on the first portion of their income, and tax rates increase for successive portions. In practice, you pay the rate associated with each bracket only on the income that falls within that bracket.
There are five federal tax brackets for 2023 and separate tax brackets for each province and territory. Below you’ll find the federal brackets and a full set of provincial and territorial brackets to help you estimate your tax obligations.
Federal tax brackets in Canada for 2023
Use this table to find the federal bracket that applies to your taxable income:
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Total Tax |
|---|---|---|---|---|
| Up to $53,359 | The first $53,359 | 15% | $8,003.85 | $8,003.85 |
| $53,359 to $106,717 | The next $53,358 | 20.5% | $10,938.39 | $18,942.24 ($8,003.85 + $10,938.39) |
| $106,717 to $165,430 | The next $58,713 | 26% | $15,265.38 | $34,207.62 ($18,942.24 + $15,265.38) |
| $165,430 to $235,675 | The next $70,245 | 29% | $20,371.05 | $54,578.67 ($34,207.62 + $20,371.05) |
| Over $235,675 | Over $235,675 | 33% | n/a | n/a |
How Canada’s federal tax brackets work
Federal tax rates apply only to the portion of income that falls within each bracket. For example, if your total taxable income for 2023 is $50,000, all of that income would fall within the first federal bracket (up to $53,359), and you would pay 15% federal tax on $50,000 (before deductions and credits).
If your annual taxable income is $65,242.32 (the approximate average annual wage based on average weekly earnings for 2023), you would pay 15% on the first $53,359 and 20.5% on the remaining amount above $53,359.
How to use the federal tax bracket table
To estimate your federal taxes:
- Find the bracket containing your annual taxable income.
- If your income is in the first bracket, multiply the income by that bracket’s rate.
- If your income is in a higher bracket, subtract the lower bound of that bracket from your income, multiply the remainder by the bracket’s rate, then add the cumulative tax from the previous brackets (shown in the table as the “Maximum Total Tax”).
Example: For taxable income of $60,000 in 2023:
- Identify the bracket: $60,000 falls in the second federal tier ($53,359–$106,717).
- Amount within the tier: $60,000 − $53,359 = $6,641.
- Tax rate for that tier: 20.5%.
- Tax on the portion in that tier: $6,641 × 0.205 = $1,361.05.
- Add tax from the first tier: $8,003.85 + $1,361.05 = $9,364.90 estimated federal tax (before deductions and credits).
These calculations do not account for deductions and credits (for example, RRSP contributions or the basic personal amount). The final tax owing will be confirmed when you file your income tax return.
Provincial and territorial tax brackets in Canada (2023)
After estimating federal tax, calculate your provincial or territorial tax using a similar method. Each province and territory sets its own rates and bracket thresholds, and those figures may change from year to year. Below are the 2023 tax brackets for each province and territory. These tables show taxable income ranges, rates, and the maximum tax in each bracket to help you estimate provincial/territorial tax owing (before credits, deductions and any surtaxes).
Alberta tax brackets 2023
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Total Tax |
|---|---|---|---|---|
| Up to $142,292 | The first $142,292 | 10% | $14,229.20 | $14,229.20 |
| $142,292 to $170,751 | The next $28,459 | 12% | $3,415.08 | $17,644.28 ($14,229.20 + $3,415.08) |
| $170,751 to $227,668 | The next $56,917 | 13% | $7,399.21 | $25,043.49 ($17,644.28 + $7,399.21) |
| $227,668 to $341,502 | The next $113,834 | 14% | $15,936.76 | $40,980.25 ($25,043.49 + $15,936.76) |
| More than $341,502 | Over $341,502 | 15% | n/a | n/a |
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British Columbia tax brackets 2023
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Total Tax |
|---|---|---|---|---|
| Up to $45,654 | The first $45,654 | 5.06% | $2,310.09 | $2,310.09 |
| $45,654 to $91,310 | The next $45,656 | 7.7% | $3,515.51 | $5,825.60 ($2,310.09 + $3,515.51) |
| $91,310 to $104,835 | The next $13,525 | 10.5% | $1,420.12 | $7,245.72 ($5,825.60 + $1,420.12) |
| $104,835 to $127,299 | The next $22,464 | 12.29% | $2,760.83 | $10,006.55 ($7,245.72 + $2,760.83) |
| $127,299 to $172,602 | The next $45,303 | 14.7% | $6,659.54 | $16,666.09 ($10,006.55 + $6,659.54) |
| $172,602 to $240,716 | The next $68,114 | 16.8% | $11,443.15 | $28,109.24 ($16,666.09 + $11,443.15) |
| More than $240,716 | Over $240,716 | 20.5% | n/a | n/a |
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Manitoba tax brackets 2023
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Total Tax |
|---|---|---|---|---|
| Up to $36,842 | The first $36,842 | 10.8% | $3,978.94 | $3,978.94 |
| $36,842 to $79,625 | The next $42,783 | 12.75% | $5,454.83 | $9,433.77 ($3,978.94 + $5,454.83) |
| More than $79,625 | Over $79,625 | 17.4% | n/a | n/a |
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New Brunswick tax brackets 2023
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Total Tax |
|---|---|---|---|---|
| Up to $47,715 | The first $47,715 | 9.4% | $4,485.21 | $4,485.21 |
| $47,715 to $95,431 | The next $47,716 | 14% | $6,680.24 | $11,165.45 ($4,485.21 + $6,680.24) |
| $95,431 to $176,756 | The next $81,325 | 16% | $13,012 | $24,177.45 ($11,165.45 + $13,012) |
| More than $176,756 | Over $176,756 | 19.5% | n/a | n/a |
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Newfoundland and Labrador tax brackets 2023
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
|---|---|---|---|---|
| Up to $41,457 | The first $41,457 | 8.7% | $3,606.76 | $3,606.76 |
| $41,457 to $82,913 | The next $41,456 | 14.5% | $6,011.12 | $9,617.88 ($3,606.76 + $6,011.12) |
| $82,913 up to $148,027 | The next $65,114 | 15.8% | $10,288.01 | $19,905.89 ($9,617.88 + $10,288.01) |
| $148,027 up to $207,239 | The next $59,212 | 17.8% | $10,539.74 | $30,445.63 ($19,905.89 + $10,539.74) |
| $207,239 up to $264,750 | The next $57,511 | 19.8% | $11,387.18 | $41,832.81 ($30,445.63 + $11,387.18) |
| $264,750 up to $529,500 | The next $264,750 | 20.8% | $55,068.00 | $96,900.81 ($41,832.81 + $55,068.00) |
| $529,500 up to $1,059,000 | The next $529,500 | 21.3% | $112,783.50 | $209,684.31 ($96,900.81 + $112,783.50) |
| More than $1,059,000 | Over $1,059,000 | 21.8% | n/a | n/a |
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Northwest Territories tax brackets 2023
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
|---|---|---|---|---|
| Up to $48,326 | The first $48,326 | 5.9% | $2,851.23 | $2,851.23 |
| $48,326 to $96,655 | The next $48,329 | 8.6% | $4,156.29 | $7,007.52 ($2,851.23 + $4,156.29) |
| $96,655 to $157,139 | The next $60,484 | 12.2% | $7,379.05 | $14,386.57 ($7,007.52 + $7,379.05) |
| More than $157,139 | Over $157,139 | 14.05% | n/a | n/a |
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Nova Scotia tax brackets 2023
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
|---|---|---|---|---|
| Up to $29,590 | The first $29,590 | 8.79% | $2,601 | $2,601 |
| $29,590 to $59,180 | The next $29,590 | 14.95% | $4,424 | $7,025 ($2,601 + $4,424) |
| $59,180 to $93,000 | The next $33,820 | 16.67% | $5,638 | $12,663 ($7,025 + $5,638) |
| $93,000 to $150,000 | The next $57,000 | 17.5% | $9,975 | $22,638 ($12,663 + $9,975) |
| More than $150,000 | Over $150,000 | 21% | n/a | n/a |
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Nunavut tax brackets 2023
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
|---|---|---|---|---|
| Up to $50,877 | The first $50,877 | 4% | $2,035.08 | $2,035.08 |
| $50,877 to $101,754 | The next $50,877 | 7% | $3,561.39 | $5,596.47 ($2,035.08 + $3,561.39) |
| $101,754 to $165,429 | The next $63,675 | 9% | $5,730.75 | $11,327.22 ($5,596.47 + $5,730.75) |
| More than $165,429 | Over $165,429 | 11.5% | n/a | n/a |
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Ontario tax brackets 2023
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
|---|---|---|---|---|
| Up to $49,231 | The first $49,231 | 5.05% | $2,486.17 | $2,486.17 |
| $49,231 to $98,463 | The next $49,232 | 9.15% | $4,504.73 | $6,990.90 ($2,486.17 + $4,504.73) |
| $98,463 to $150,000 | The next $51,537 | 11.16% | $5,751.53 | $12,742.43 ($6,990.90 + $5,751.53) |
| $150,000 to $220,000 | The next $70,000 | 12.16% | $8,512 | $21,254.43 ($12,742.43 + $8,512) |
| More than $220,000 | Over $220,000 | 13.16% | n/a | n/a |
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Prince Edward Island tax brackets 2023
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
|---|---|---|---|---|
| Up to $31,984 | The first $31,984 | 9.8% | $3,134.43 | $3,134.43 |
| $31,984 to $63,969 | The next $31,985 | 13.8% | $4,414.93 | $7,548.36 ($3,134.43 + $4,414.93) |
| More than $63,969 | Over $63,969 | 16.7% | n/a | n/a |
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Quebec tax brackets 2023
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
|---|---|---|---|---|
| Up to $49,275 | The first $49,275 | 14% | $6,898.50 | $6,898.50 |
| $49,275 to $98,540 | The next $49,265 | 19% | $9,360.35 | $16,258.85 ($6,898.50 + $9,360.35) |
| $98,540 to $119,910 | The next $21,370 | 24% | $5,128.80 | $21,387.65 ($16,258.85 + $5,128.80) |
| More than $119,910 | Over $119,910 | 25.75% | n/a | n/a |
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Saskatchewan tax brackets 2023
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
|---|---|---|---|---|
| Up to $49,720 | The first $49,720 | 10.5% | $5,220.60 | $5,220.60 |
| $49,720 to $142,058 | The next $92,338 | 12.5% | $11,542.25 | $16,762.85 ($5,220.60 + $11,542.25) |
| More than $142,058 | Over $142,058 | 14.5% | n/a | n/a |
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Yukon tax brackets 2023
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
|---|---|---|---|---|
| Up to $53,359 | The first $53,359 | 6.4% | $3,414.98 | $3,414.98 |
| $53,359 to $106,717 | The next $53,358 | 9% | $4,802.22 | $8,217.20 ($3,414.98 + $4,802.22) |
| $98,040 to $165,430 | The next $67,390 | 10.9% | $7,345.51 | $15,562.71 ($8,217.20 + $7,345.51) |
| $165,430 to $500,000 | The next $334,570 | 12.8% | $42,824.96 | $58,387.67 ($15,562.71 + $42,824.96) |
| More than $500,000 | Over $500,000 | 15% | n/a | n/a |
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Who pays the surtax in Canada?
Some provinces apply surtaxes on top of provincial tax. Prince Edward Island and Ontario both use surtax rules that can increase the effective provincial tax burden for higher provincial tax amounts.
Prince Edward Island surtax
In Prince Edward Island a 10% surtax applies to provincial tax owing, except when the basic provincial tax payable is $12,500 or less, in which case no surtax is applied.
Ontario surtax
Ontario’s surtax is tiered. For 2023:
| Provincial Tax Owed | Surtax Rates |
|---|---|
| Up to $5,315 | 0% |
| $5,315 to $6,802 | 20% on the portion above $5,315 |
| More than $6,802 | 20% on portion above $5,315, plus 36% on portion above $6,802 |
How to lower your income tax
Knowing your brackets helps you estimate whether you’ll owe tax or expect a refund and allows you to plan before the tax-filing deadlines to avoid interest or penalties. One common strategy to reduce taxable income is contributing to an RRSP. Contributions made before the RRSP deadline can be deducted from taxable income and may lower your tax bill or increase a refund.
To estimate the tax savings from an RRSP contribution, determine your marginal tax rate (federal plus provincial rate for the highest portion of your income) and multiply your planned contribution by that rate to approximate the tax reduction.
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Further reading
- How to fill out a personal tax return
- How to file your taxes online in Canada
- Filing multiple years of income tax returns
- How severance pay is taxed