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Estimating the tax you’ll owe on 2025 income begins with understanding the federal and provincial or territorial tax brackets that apply to you.
How do tax brackets work in Canada?
Canada uses a progressive income tax system: tax rates rise as taxable income increases. Rather than taxing all income at a single rate, income is divided into ranges or brackets. Each bracket has its own rate, and only the portion of income within a given bracket is taxed at that rate.
Moving into a higher bracket does not mean all your income is taxed at the higher rate. Everyone pays the lowest rate on the first portion of their income. Only additional dollars above each bracket threshold are taxed at the higher rates.
The highest bracket that applies to your income determines your marginal tax rate — the rate on your last dollar of income. Your average (or effective) tax rate is the total tax paid divided by total income; for most Canadians the average rate is much lower than the marginal rate.
For example, using average pay figures: as of October 2025, the average weekly wage in Canada was $1,312, which works out to about $68,224 annually. At that level of taxable income, a taxpayer would fall into the second federal bracket, paying 14.5% on the first $57,375 and 20.5% on the remaining $10,849. That produces roughly $10,543 in federal tax before credits and deductions — showing how only the income above each threshold is taxed at the higher rate.
Find your Canadian federal, provincial, and territorial tax brackets
- Canadian federal tax brackets
- Alberta tax brackets
- British Columbia tax brackets
- Manitoba tax brackets
- New Brunswick tax brackets
- Newfoundland tax brackets
- Northwest Territories tax brackets
- Nova Scotia tax brackets
- Nunavut tax brackets
- Ontario tax brackets
- Prince Edward Island tax brackets
- Quebec tax brackets
- Saskatchewan tax brackets
- Yukon tax brackets
Also read
Income Tax Guide for Canadians
Deadlines, tax tips and more
What are the federal tax brackets in Canada?
At the federal level, Canada uses five income tax brackets, each with a distinct rate. The table below summarizes the 2025 federal brackets and the tax rates that apply to taxable income.
What are the federal tax brackets in Canada for 2025 income?
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum total tax |
|---|---|---|---|---|
| Up to $57,375 | The first $57,375 | 14.5%* | $8,319.38 | $8,319.38 |
| $57,375 to $114,750 | The next $57,375 | 20.5% | $11,761.88 | $20,081.26 |
| $114,750 to $177,882 | The next $63,132 | 26% | $16,414.32 | $36,495.58 |
| $177,882 to $253,414 | The next $75,532 | 29% | $21,904.28 | $58,399.86 |
| Over $253,414 | Over $253,414 | 33% | n/a | n/a |
How to use the federal tax bracket table
Find the bracket(s) that include your taxable annual income. For any bracket above the first, subtract the lower boundary of that range from your income, multiply the difference by the bracket’s tax rate, and add the total tax from all lower brackets. This gives an estimate of federal tax payable before non-refundable credits and deductions.
Example: If your 2025 taxable income is $60,000:
- Identify the tier: $60,000 falls in the second tier ($57,375–$114,750).
- Amount within the tier: $60,000 − $57,375 = $2,625.
- Tax rate for that tier: 20.5%.
- Tax for this tier: $2,625 × 0.205 = $538.13.
- Estimate total federal tax: Add $538.13 to the first-tier tax ($8,319.38) for a subtotal of $8,857.51 before credits and deductions.
Note on deductions: These calculations use taxable income before deductions. Common deductions include the basic personal amount ($16,129 for 2025), RRSP contributions and other allowable reductions, which will lower taxable income and reduce tax payable.
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How tax brackets work for Canadian provinces and territories
In Canada, income tax is collected by both the federal government and provincial or territorial governments. Provinces and territories fund services such as health care and education, while the federal government covers national responsibilities. Each jurisdiction sets its own tax brackets and rates, which vary and can change annually.
To estimate provincial or territorial tax, find the table for the jurisdiction where you lived on December 31, 2025, locate your taxable income within that table and perform the same marginal calculations used for federal tax. Many provinces apply surtaxes or additional levies based on provincial tax payable; these are applied after basic provincial tax is calculated.
The figures below show tax payable before non-refundable credits, surtaxes and any provincial reductions.
Here are the 2025 tax brackets for all provinces and territories:
- Alberta tax brackets
- British Columbia tax brackets
- Manitoba tax brackets
- New Brunswick tax brackets
- Newfoundland and Labrador tax brackets
- Northwest Territories tax brackets
- Nova Scotia tax brackets
- Nunavut tax brackets
- Ontario tax brackets
- Prince Edward Island tax brackets
- Quebec tax brackets
- Saskatchewan tax brackets
- Yukon tax brackets
Alberta tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum total tax |
|---|---|---|---|---|
| Up to $60,000 | The first $60,000 | 8% | $4,800 | $4,800 |
| $60,000 to $151,234 | The next $91,234 | 10% | $9,123.40 | $13,923.40 |
| $151,234 to $181,481 | The next $30,247 | 12% | $3,629.64 | $17,553.04 |
| $181,481 to $241,974 | The next $60,493 | 13% | $7,864.09 | $25,417.13 |
| $241,974 to $362,961 | The next $120,987 | 14% | $16,938.18 | $42,355.31 |
| More than $362,961 | Over $362,961 | 15% | n/a | n/a |
British Columbia tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum total tax |
|---|---|---|---|---|
| Up to $49,279 | The first $49,279 | 5.06% | $2,493.52 | $2,493.52 |
| $49,279 to $98,560 | The next $49,281 | 7.7% | $3,794.64 | $6,288.16 |
| $98,560 to $113,158 | The next $14,598 | 10.5% | $1,532.79 | $7,820.95 |
| $113,158 to $137,407 | The next $24,249 | 12.29% | $2,980.20 | $10,801.15 |
| $137,407 to $186,306 | The next $48,899 | 14.7% | $7,188.15 | $17,989.30 |
| $186,306 to $259,829 | The next $73,523 | 16.8% | $12,351.86 | $30,341.16 |
| More than $259,829 | Over $259,829 | 20.5% | n/a | n/a |
Manitoba tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum total tax |
|---|---|---|---|---|
| Up to $47,564 | The first $47,564 | 10.8% | $5,076 | $5,136 |
| $47,654 to $101,200 | The next $53,546 | 12.75% | $6,827.15 | $11,963.15 |
| More than $101,200 | Over $101,200 | 17.4% | n/a | n/a |
New Brunswick tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum total tax |
|---|---|---|---|---|
| Up to $51,305 | The first $51,306 | 9.4% | $4,822.76 | $4,822.76 |
| $51,306 up to $102,614 | The next $51,308 | 14% | $7,183.12 | $12,005.88 |
| $102,614 to $190,060 | The next $87,446 | 16% | $13,991.36 | $25,997.24 |
| More than $190,060 | Over $190,060 | 19.5% | n/a | n/a |
Newfoundland and Labrador tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $44,192 | The first $44,192 | 8.7% | $3,844.70 | $3,844.70 |
| $44,192 to $88,382 | The next $44,190 | 14.5% | $6,407.55 | $10,252.25 |
| $88,382 to $157,792 | The next $69,410 | 15.8% | $10,966.78 | $21,219.03 |
| $157,792 to $220,910 | The next $63,118 | 17.8% | $11,235 | $32,453.03 |
| $220,910 to $282,214 | The next $61,304 | 19.8% | $11,235 | $43,688.03 |
| $282,214 to $564,429 | The next $282,215 | 20.8% | $58,700 | $102,388 |
| $564,429 up to $1,128,858 | The next $564,429 | 21.3% | $120,223.37 | $222,611.37 |
| More than $1,128,858 | Over $1,128,858 | 21.8% | n/a | n/a |
Northwest Territories tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $51,964 | The first $51,964 | 5.9% | $3,065.87 | $3,065.87 |
| $51,964 to $103,930 | The next $50,601 | 8.6% | $51,966 | $55,031.87 |
| $103,930 to $168,967 | The next $65,037 | 12.2% | $7,934.51 | $62,966.38 |
| More than $168,967 | Over $168,967 | 14.05% | n/a | n/a |
Nova Scotia tax brackets 2025
| Annual income (Taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum |
|---|---|---|---|---|
| Up to $30,507 | The first $30,507 | 8.79% | $2,681.56 | $2,681.56 |
| $30,507 to $61,015 | The next $30,508 | 14.95% | $4,545.69 | $7,227.25 |
| $61,015 to $95,883 | The next $34,868 | 16.67% | $5,812.49 | $13,039.74 |
| $95,883 to $154,650 | The next $58,767 | 17.5% | $10,284.22 | $23,323.96 |
| More than $154,650 | Over $154,650 | 21% | n/a | n/a |
Nunavut tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $54,707 | The first $54,707 | 4% | $2,188.28 | $2,188.28 |
| $54,707 up to $109,413 | The next $54,706 | 7% | $3,829.42 | $6,017.70 |
| $109,413 to $177,881 | The next $68,468 | 9% | $6,162.12 | $12,179.82 |
| More than $177,881 | Over $177,881 | 11.5% | n/a | n/a |
Ontario tax brackets 2025
| Annual income (taxable) | Tax Brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $52,886 | The first $52,886 | 5.05% | $2,670.74 | $2,670.74 |
| $52,886 to $105,775 | The next $52,889 | 9.15% | $4,839.34 | $7,510.08 |
| $105,775 up to $150,000 | The next $44,225 | 11.16% | $4,935.51 | $12,445.59 |
| $150,000 up to $220,000 | The next $70,000 | 12.16% | $8,512 | $20,957.59 |
| More than $220,000 | Over $220,000 | 13.16% | n/a | n/a |
Ontario surtax: Ontario also applies a surtax on provincial tax payable for higher-income taxpayers; this surcharge is calculated on provincial tax, not on income, and can raise the effective provincial rate.
Prince Edward Island tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $33,328 | The first $33,328 | 9.5% | $3,166.16 | $3,166.16 |
| $33,328 to $64,656 | The next $31,328 | 13.47% | $4,219.88 | $7,386.04 |
| $64,656 to $105,000 | The next $40,344 | 16.6% | $6,697.10 | $14,083.14 |
| $105,000 to $140,000 | The next $35,000 | 17.62% | $6,167 | $20,250.14 |
| More than $140,000 | Over $140,000 | 19% | n/a | n/a |
Prince Edward Island surtax: PEI applies a surtax based on provincial tax payable rather than on income; this increases effective provincial tax for higher earners once basic provincial tax exceeds set thresholds.
Quebec tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $53,255 | The first $53,255 | 14% | $7,455.70 | $7,455.70 |
| $53,255 to $106,495 | The next $53,240 | 19% | $10,115.60 | $17,571.30 |
| $106,495 to $129,590 | The next $23,095 | 24% | $5,542.80 | $23,114.10 |
| More than $129,590 | Over $129,590 | 25.75% | n/a | n/a |
Quebec tax note: Quebec does not use a provincial surtax. Instead, residents receive a federal tax abatement that reduces federal tax to reflect Quebec’s distinct tax system.
Saskatchewan tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $53,463 | The first $53,463 | 10.5% | $5,613.61 | $5,613.61 |
| $53,463 to $152,750 | The next $99,287 | 12.5% | $99,287 | $104,900.61 |
| More than $152,750 | Over $152,750 | 14.5% | n/a | n/a |
Yukon tax brackets 2025
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum tax total |
|---|---|---|---|---|
| Up to $57,375 | The first $57,375 | 6.4% | $3,672 | $3,672 |
| $57,375 up to $114,750 | The next $57,375 | 9% | $5,163.75 | $8,935.75 |
| $114,750 up to $177,882 | The next $63,132 | 10.9% | $6,881.38 | $15,817.13 |
| $177,882 up to $500,000 | The next $322,118 | 12.8% | $38,654.16 | $54,471.29 |
| More than $500,000 | Over $500,000 | 15% | n/a | n/a |
How to lower your income tax
Knowing your marginal and effective tax rates helps you plan for tax season and avoid interest or penalties on overdue payments. To reduce your 2025 tax bill, consider strategies like regular RRSP contributions. You have until March 2, 2026, to contribute to an RRSP and claim the deduction on your 2025 return.
To estimate the tax impact of RRSP contributions, multiply the contribution amount by your marginal tax rate to approximate the tax savings or refund potential. Other common options to reduce tax include claiming eligible deductions, using tax-efficient accounts and timing capital gains or charitable donations.
FAQs
Generally, surtaxes are paid by higher-income earners in provinces that use them. A surtax is an additional charge calculated as a percentage of your basic provincial tax payable rather than a separate tax on income. Ontario and Prince Edward Island are examples of jurisdictions that apply surtaxes based on provincial tax payable, not income. You only pay a surtax if your provincial tax payable exceeds the specified threshold.
Take-home pay on a $100,000 salary varies by province and personal deductions, but for many Canadians it typically falls in the $70,000–$75,000 range assuming a single filer with no major deductions. Exact net pay depends on provincial tax, contributions (CPP, EI) and any deductions or credits claimed.
Most Canadians do not pay 40% in overall taxes. Canada’s progressive system means only the top portion of income is taxed at the highest marginal rates. Combined federal and provincial top marginal rates can be high on paper, but those rates apply only to income above very high thresholds. Typical effective tax rates for many Canadians range around 20–30%.
The Quebec tax abatement reduces federal tax for Quebec residents by a specified percentage applied to basic federal tax or minimum tax. The abatement reflects Quebec’s separate tax collection arrangements and lowers the federal tax burden for residents of the province.
Rankings
Compare the best RRSP rates in Canada
Read more about taxes:
- How to fill out a personal tax return
- How to file your taxes online in Canada
- Can you file multiple years of income taxes together in Canada?
- How to avoid tax on severance pay in Canada