Understanding your 2025 federal and provincial income tax brackets: A guide for the 2026 filing season.
March 3, 2026|Updated: March 4, 2026
Filing your 2025 taxes in 2026 comes with a few changes, and some might actually save you money. This year, there’s a new federal tax cut, updated tax brackets, and inflation adjustments that could help lower your tax bill. But with terms like blended tax rate, Basic Personal Amount, and top‑up credits, it can be hard to know what you really owe.
This guide explains the new 2025 federal tax brackets in Canada, why the lowest rate is now 14.5%, and how your province or territory affects what you pay.
The big change: The middle-class tax cut & the 14.5% blended tax rate.
If you’ve opened your tax software and seen a 14.5% blended tax rate where a 15% rate used to be, don't worry – your computer isn't glitching!
On July 1, 2025, the federal government introduced a "Middle-Class Tax Cut," reducing the lowest tax rate from 15% to 14%. Because this change happened exactly halfway through the year, the Canada Revenue Agency (CRA) uses a "blended" rate of 14.5% for the entire 2025 tax year.
For 2025 (filing now in 2026): The rate is 14.5%.
For 2026 (filing in 2027): The rate will be a flat 14%.
The result: This means you’re paying less on your first "bucket" of income compared to last year. It’s a small win that adds up!
Federal tax brackets in Canada for 2025.
When you file your taxes in 2026, these are the official federal brackets you’ll use. Remember, Canada uses a progressive tax system, so you only pay the higher rate on the portion of your income that falls into that specific bracket.
| 2025 Taxable Income | 2025 Federal Tax Rate |
| $57,375 or less | 14.5% (Blended) |
| $57,375 to $114,750 | 20.5% |
| $114,750 to $177,882 | 26% |
| $177,882 to $253,414 | 29% |
| More than $253,414 | 33% |
Note: You’ll also need to add your provincial or territorial tax rates to these federal ones to get your total tax bill.
The "tax-free" zone: Basic Personal Amount 2025.
The Basic Personal Amount is the portion of income every Canadian can earn before paying any federal income tax. For the 2025 tax year, the maximum federal Basic Personal Amount is $16,129.
If you earned less than this amount in 2025, you generally won’t owe any federal income tax. If you earned more, you only pay tax on the amount above this threshold. It’s a vital tool for keeping more money in the pockets of students, part-time workers, and seniors.
Provincial and territorial tax brackets in Canada for 2025.
While the federal government takes its share, each province and territory also sets its own tax brackets. When you file in 2026, your tax software (or your H&R Block Tax Expert) will combine these with the federal rates to calculate your total balance.
Alberta
| 2025 Tax Bracket | Tax Rate |
| Less than $60,000 | 8% |
| $60,001 – $151,234 | 10% |
| $151,235 – $181,481 | 12% |
| $181,482 – $241,974 | 13% |
| $241,975 – $362,961 | 14% |
| More than $362,961 | 15% |
British Columbia
| 2025 Tax Bracket | Tax Rate |
| Up to $49,279 | 5.06% |
| $49,279.01 – $98,560 | 7.7% |
| $98,560.01 – $113,158 | 10.5% |
| $113,158.01 – $137,407 | 12.29% |
| $137,407.01 – $186,306 | 14.7% |
| $186,306.01 – $259,829 | 16.8% |
| Over $259,829 | 20.5% |
Manitoba
| 2025 Tax Bracket | Tax Rate |
| Up to $47,564 | 10.8% |
| $47,564.01 – $101,200 | 12.75% |
| Over $101,200 | 17.4% |
New Brunswick
| 2025 Tax Bracket | Tax Rate |
| Up to $51,306 | 9.4% |
| $51,306.01 – $102,614 | 14% |
| $102,614.01 – $190,060 | 16% |
| Over $190,060 | 19.5% |
Newfoundland & Labrador
| 2025 Tax Bracket | Tax Rate |
| Up to $44,192 | 8.7% |
| $44,192.01 – $88,382 | 14.5% |
| $88,382.01 – $157,792 | 15.8% |
| $157,792.01 – $220,910 | 17.8% |
| $220,910.01 – $282,214 | 19.8% |
| $282,214.01 – $564,429 | 20.8% |
| $564,429.01 – $1,128,858 | 21.3% |
| Over $1,128,858 | 21.8% |
Northwest Territories
| 2025 Tax Bracket | Tax Rate |
| Up to $51,964 | 5.9% |
| $51,964.01 – $103,930 | 8.6% |
| $103,930.01 – $168,967 | 12.2% |
| Over $168,967 | 14.05% |
Nova Scotia
| 2025 Tax Bracket | Tax Rate |
| Up to $30,507 | 8.79% |
| $30,507.01 – $61,015 | 14.95% |
| $61,015.01 – $95,883 | 16.67% |
| $95,883.01 – $154,650 | 17.5% |
| Over $154,650 | 21% |
Nunavut
| 2025 Tax Bracket | Tax Rate |
| Up to $54,707 | 4% |
| $54,707.01 – $109,413 | 7% |
| $109,413.01 – $177,881 | 9% |
| Over $177,881 | 11.5% |
Ontario
| 2025 Tax Bracket | Tax Rate |
| Up to $52,886 | 5.05% |
| $52,886.01 – $105,775 | 9.15% |
| $105,775.01 – $150,000 | 11.16% |
| $150,000.01 – $220,000 | 12.16% |
| Over $220,000 | 13.16% |
Prince Edward Island
| 2025 Tax Bracket | Tax Rate |
| Up to $33,328 | 9.5% |
| $33,328.01 – $64,656 | 13.47% |
| $64,656.01 – $105,000 | 16.6% |
| $105,000.01 – $140,000 | 17.62% |
| Over $140,000 | 19% |
Quebec
| 2025 Tax Bracket | Tax Rate |
| Up to $53,255 | 14% |
| $53,255.01 – $106,495 | 19% |
| $106,495.01 – $129,590 | 24% |
| Over $129,590 | 25.75% |
Saskatchewan
| 2025 Tax Bracket | Tax Rate |
| Up to $53,463 | 10.5% |
| $53,463.01 – $152,750 | 12.5% |
| Over $152,750 | 14.5% |
Yukon
| 2025 Tax Bracket | Tax Rate |
| Up to $57,375 | 6.4% |
| $57,375.01 – $114,750 | 9% |
| $114,750.01 – $177,882 | 10.9% |
| $177,882.01 – $500,000 | 12.8% |
| Over $500,000 | 15% |
Pro-tip: If you moved between provinces in 2025, you generally pay the tax rates for the province where you lived on December 31, 2025. So, if you moved from Toronto to Calgary on New Year's Eve, hello Alberta tax rates!
What could change your tax bracket?
It’s a common myth that a raise can actually leave you with less money because it "pushes you into a higher bracket." Because of our progressive system, only the extra dollars are taxed at the higher rate, never your whole income. However, your bracket isn't set in stone. Your taxable income (the number that determines your bracket) can be lowered by taking advantage of tax deductions like RRSP contributions, childcare expenses, or moving costs.
Conversely, things like a significant bonus, selling a taxable investment for a capital gain, or even a side hustle can increase your taxable income.
Protecting your credits: The CRA Top-Up Tax Credit 2025.
Here’s where it gets a little technical (but stay with us!). Most "non-refundable" tax credits (like the ones for medical expenses or tuition) are calculated using the lowest tax rate.
When the government cut that rate from 15% to 14%, it created a weird side effect: those credits would technically be worth less money. To fix this, the government introduced the CRA Top-Up Tax Credit 2025.
What it does: It effectively "tops up" the value of certain credits back to 15% for people whose income falls in the second tax bracket or higher.
The goal: To make sure the middle-class tax cut in Canada doesn't accidentally reduce the value of your other hard-earned credits.
The bottom line: How much will you save?
By the time you finish your 2026 paycheques, the middle-class tax cut in Canada 2026 (at the full 14% rate) is expected to save individuals up to $420 per year and two-income families up to $840 per year.
While $400 might not buy a private island, it certainly helps with the grocery bill or a well-deserved weekend getaway.
Frequently asked questions.
Want to get a rough estimate before you file?
You can use our 2025 Income Tax Calculator to see your expected refund or balance owing. It’s available for every province and territory, so you can easily compare your federal and provincial tax brackets and get a clearer picture of what you’ll owe or get back. It’s a quick, simple way to plan ahead and avoid surprises at tax time.
Ready to get your maximum refund?
Tax brackets and "top-up" credits can be confusing, but you don't have to navigate them alone. Whether you want to file online yourself or sit down with a Tax Expert, H&R Block is here to help.
Choose from one of four convenient ways to file.
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From home
Connect with your Tax Expert remotely and upload your documents from any device.
Do it yourself with our tax software
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