Canada 2026 Tax Brackets — 14% Bottom Rate, $16,452 BPA, New CPP and EI Caps
Published: 2026-08-26 · Canada Revenue Agency 2026 indexation
2026 is the first full year at the reduced bottom federal rate of 14% (it was 15% through mid-2025 and blended at 14.5% for the 2025 tax year). Add indexed brackets, a higher basic personal amount and new CPP/EI ceilings, and almost every line on a Canadian pay stub changed.
Lowest federal rate
14%
Basic Personal Amount
$16,452
CPP ceiling (YMPE)
$74,600
1. Federal brackets for 2026
| Taxable income | Federal rate |
|---|---|
| First $58,523 | 14% |
| $58,523 – $117,045 | 20.5% |
| $117,045 – $181,440 | 26% |
| $181,440 – $258,482 | 29% |
| Above $258,482 | 33% |
The Basic Personal Amount rises to $16,452, claimed as a non-refundable credit at the lowest rate — worth about $2,303 in 2026. It phases down to $14,829 for the highest earners.
2. CPP, CPP2 and EI for 2026
| Contribution | Rate (employee) | Earnings range | Max |
|---|---|---|---|
| CPP | 5.95% | $3,500 – $74,600 | $4,230.45 |
| CPP2 (second ceiling) | 4% | $74,600 – $85,000 | $416.00 |
| EI (outside Quebec) | 1.63% | up to $68,900 | $1,123.07 |
Note the EI rate actually fell from 1.64% to 1.63%, but the maximum insurable earnings rose from $65,700 to $68,900 — so anyone earning above the old cap still pays more in dollar terms.
🇨🇦 Check your 2026 net pay
Pick your province and see federal tax, provincial tax, CPP, CPP2 and EI on your salary using 2026 rates.
Canada Salary Calculator →3. Example: take-home pay in Ontario (2026)
| Salary | Federal | Ontario | CPP + EI | Net annual | Effective rate |
|---|---|---|---|---|---|
| $50,000 | $4,697 | $1,869 | $3,582 | $39,852 | 20.3% |
| $75,000 | $9,268 | $3,997 | $5,369 | $56,366 | 24.8% |
| $100,000 | $14,393 | $6,284 | $5,769 | $73,554 | 26.4% |
| $150,000 | $26,456 | $11,708 | $5,769 | $106,067 | 29.3% |
Ontario 2026 brackets: 5.05% to $53,891, 9.15% to $107,785, 11.16% to $150,000, 12.16% to $220,000, 13.16% above. The Ontario Health Premium and surtaxes are not included in this simplified view.
4. TFSA and other 2026 numbers
- TFSA annual limit: $7,000 for 2026 — unchanged for a third year. Cumulative room for someone eligible since 2009 reaches $109,000.
- Automatic tax filing: from the 2026 tax year the CRA begins auto-filing for roughly 5.5 million lower-income Canadians, so benefits such as the GST/HST credit flow without a manual return.
- Quebec: QPP and QPIP replace CPP and part of EI; the rates above apply outside Quebec.
Related calculators
Sources: Canada Revenue Agency (2026 indexation and payroll deduction figures), Employment and Social Development Canada (2026 EI premium rate and maximum insurable earnings).