Marginal tax rate 2026: how much tax on your next dollar?
Enter your province and taxable income: the calculator shows the combined rate on the next dollar, its federal and provincial parts, and the income levels where it changes.
2026 combined marginal rate, Ontario
29.6%
Next change at $94,901: 31.5%.
| Federal share | 20.5% |
| Provincial share | 9.1% |
| Total tax on this income | $13,265 |
| Average rate | 17.7% |
Ordinary income (salary, interest, RRSP withdrawals). Dividends and capital gains have their own rates.
| From | Combined marginal rate |
|---|---|
| $0 | 0.0% |
| $53,891 | 23.1% |
| $58,523 | 29.7% |
| $94,901 | 31.5% |
| $107,785 | 33.9% |
| $111,810 | 37.9% |
| $117,045 | 43.4% |
| $150,000 | 45.0% |
| $181,440 | 48.3% |
| $220,000 | 49.8% |
| $258,482 | 53.5% |
Prepared by Radif Partners · How we calculate · limits and tax tables read on canada.ca · estimates only, not a notice of assessment
Your marginal tax rate is the tax, federal and provincial combined, that you pay on your next dollar of income. It is not the rate on all your income: that one is the average rate, and it is always lower. In Ontario, at $75,000 of taxable income, the marginal rate is 29.6% in 2026, while total tax of $13,265 is only 17.7% of income. The combined marginal rate varies a lot between provinces: at $100,000 it runs from 27.5% in Nunavut to 38.0% in Nova Scotia. It is the rate that sets the value of an RRSP or FHSA deduction and the cost of an RRSP withdrawal: each dollar deducted saves you that rate, as long as the deduction does not drop you into a lower bracket. The table below gives the rates for all 13 provinces and territories at four income levels.
Marginal and average: two rates for two questions
Canadian income tax is progressive: income is cut into brackets, each with its own rate. Your marginal rate is the rate of the bracket your next dollar falls into, federal and provincial added together. Your average rate is total tax divided by income. In Ontario, at $75,000 of taxable income, 2026 tax comes to $13,265, an average rate of 17.7%. But one more dollar is taxed at 29.6%. The calculator measures that rate on the next $100, using the brackets published by the Canada Revenue Agency.
Federally, 2026 rates run from 14% up to $58,523 to 33% above $258,482. Each province and territory adds its own schedule with its own thresholds, which is why the combined rate often changes at income levels that match no federal bracket.
Combined 2026 rates in all 13 jurisdictions
| Province or territory | $50,000 | $75,000 | $100,000 | $150,000 |
|---|---|---|---|---|
| Quebec | 25.7% | 36.1% | 36.1% | 47.5% |
| Ontario | 19.0% | 29.6% | 31.5% | 45.0% |
| British Columbia | 19.6% | 28.2% | 28.2% | 40.7% |
| Alberta | 22.0% | 30.5% | 30.5% | 36.0% |
| Manitoba | 26.8% | 33.3% | 37.9% | 43.4% |
| Saskatchewan | 24.5% | 33.0% | 33.0% | 38.5% |
| Nova Scotia | 28.9% | 37.2% | 38.0% | 43.5% |
| New Brunswick | 23.4% | 34.5% | 34.5% | 42.0% |
| Newfoundland and Labrador | 28.5% | 35.0% | 36.3% | 41.8% |
| Prince Edward Island | 27.5% | 37.1% | 37.1% | 45.0% |
| Yukon | 20.4% | 29.5% | 29.5% | 36.9% |
| Northwest Territories | 19.9% | 29.1% | 29.1% | 38.2% |
| Nunavut | 18.0% | 27.5% | 27.5% | 35.0% |
At $100,000, the gap between Nunavut and Nova Scotia is more than 10 points. Quebec thresholds come from Revenu Québec; those of the other provinces from guide T4127 and the CRA rates page.
What your marginal rate is worth on a contribution
Refund or tax saved
$1,483
| Federal tax saved | $1,025 |
| Provincial tax saved | $458 |
| Taxable income after the deduction | $70,000 |
| Total tax before / after | $13,265 / $11,782 |
Two special cases: the Quebec abatement and the Ontario surtax
Quebec residents get an abatement of 16.5% of their basic federal tax. Their federal rate is reduced by that much: at $100,000, the federal part of the marginal rate is 17.1% instead of 20.5%, and the Quebec part is 19.0%. The combined rate is still among the highest because Quebec's own rates are higher than other provinces'.
In Ontario, a surtax is added when basic Ontario tax goes over two thresholds: 20% of the tax above the first and 36% above the second. It is triggered by tax, not by income, so the marginal rate climbs without any change of bracket. At $100,000, the Ontario bracket rate is still 9.15%, but the provincial part of the marginal rate reaches 11.0%, surtax included.
Why the marginal rate decides what an RRSP contribution is worth
An RRSP deduction takes dollars off the top of your income, where the marginal rate applies. In Ontario, $5,000 deducted saves $953 at $50,000 of income and $1,574 at $100,000. The same logic runs in reverse for a withdrawal: it is taxed at the marginal rate of the year it is made. The real gain from an RRSP therefore depends on the gap between your rate when you contribute and your rate when you withdraw; the RRSP vs TFSA page runs that comparison, and the RRSP refund page details the saving for the year.
A large deduction can cross a threshold, and the part below it is only recovered at the lower rate. The basic personal amount plays a role too: federally it shrinks between $181,440 and $258,482, which raises the marginal rate in that range; in Alberta at $200,000, the combined rate is 42.3%. In Manitoba, the provincial basic amount also phases out at high incomes.
What the calculation leaves out
The calculator applies brackets, basic personal amounts, the Quebec abatement and the Ontario surtax. It leaves out the credits for CPP or QPP and EI contributions, the Canada employment amount, the age and pension income amounts, the low-income tax reductions in Ontario and British Columbia, the Ontario Health Premium and the alternative minimum tax. These matter mostly below $30,000 of income. Nor does it count the loss of income-tested benefits, which works like an extra tax; see RRSP and the Canada child benefit.