Know the rate your next dollar is taxed at — it drives RRSP decisions, raises, and bonus timing. Enter your province and income to see your combined marginal tax rate, your federal and provincial marginal rates, your average (effective) tax rate, and your total estimated tax.
General information only — not financial advice. Employment/other income only; only the basic personal amount credit is applied (no CPP/EI, age, pension or other credits); Ontario Health Premium included in total tax for Ontario (not in the marginal rate); 2026 figures, verified November 8, 2026. Excludes BC’s tax reduction credit, which phases out by ~$45,000 of income.
Frequently asked questions
What is a marginal tax rate?
Your marginal tax rate is the tax on your next dollar of income. Canada taxes income in brackets, so only the dollars inside a bracket pay that bracket’s rate. Your marginal rate is the combined federal and provincial rate on the bracket your next dollar falls into.
What is the highest tax rate in Canada in 2026?
54.80% in Newfoundland and Labrador, on income above $1,141,275 — 33% federal plus 21.8% provincial. No other province is higher.
Why does my marginal rate matter for RRSPs?
An RRSP contribution saves tax at your marginal rate today, and you pay tax at your marginal rate when you withdraw the money in retirement. If your rate today is higher than it will be in retirement, the RRSP wins; if it is lower, the TFSA usually wins. That is why the RRSP vs TFSA decision starts with your rate.
Is the Ontario Health Premium included?
Yes — in your total tax. For Ontario, the calculator includes the Ontario Health Premium (up to $900 a year) in your total tax and average rate, and the Ontario surtax in all figures. The premium itself is not counted in the marginal rate: it is a capped levy rather than a percentage of income, and its phase-in steps would make the marginal rate spike misleadingly over a few hundred dollars of income
Does a raise ever make you take home less?
No. Only the dollars above a bracket threshold are taxed at the higher rate — the dollars below it keep their lower rate. A raise always increases your after-tax pay; it just increases it by less than the full raise once you cross into a higher bracket.
See what your rate means for the RRSP vs TFSA choice. To work out the tax on a capital gain at your marginal rate, use the Capital Gains Tax Calculator.