2025 Federal Income Tax Brackets
| Taxable Income | Federal Rate | Tax on Bracket |
|---|---|---|
| $0 – $57,375 | 15% | Up to $8,606 |
| $57,376 – $114,750 | 20.5% | $8,606 + 20.5% on excess |
| $114,751 – $158,519 | 26% | $20,371 + 26% on excess |
| $158,520 – $220,000 | 29% | $31,762 + 29% on excess |
| Over $220,000 | 33% | $49,645 + 33% on excess |
Basic Personal Amount (federal): $16,129 — federal tax is zero on this amount.
Combined Federal + Provincial Rates (Top Marginal Rates 2025)
| Province | Top Provincial | Federal Top | Combined Max | Income Threshold |
|---|---|---|---|---|
| Ontario | 13.16% | 33% | 53.53% | Over $220,000 |
| British Columbia | 20.50% | 33% | 53.50% | Over $240,716 |
| Quebec | 25.75% | 33% | 53.31%* | Over $126,000 |
| Nova Scotia | 21.00% | 33% | 54.00% | Over $150,000 |
| PEI | 18.75% | 33% | 51.37% | Over $140,000 |
| Manitoba | 17.40% | 33% | 50.40% | Over $100,000 |
| Saskatchewan | 14.50% | 33% | 47.50% | Over $49,720 |
| Alberta | 15.00% | 33% | 48.00% | Over $355,845 |
| New Brunswick | 19.50% | 33% | 52.50% | Over $185,064 |
| Newfoundland | 21.30% | 33% | 54.80% | Over $1,000,000 |
*Quebec residents receive a 16.5% federal tax abatement to offset the fact that Quebec provides some services that the federal government provides in other provinces.
Ontario Provincial Tax Brackets 2025
| Taxable Income | Ontario Rate |
|---|---|
| $0 – $51,446 | 5.05% |
| $51,447 – $102,894 | 9.15% |
| $102,895 – $150,000 | 11.16% |
| $150,001 – $220,000 | 12.16% |
| Over $220,000 | 13.16% |
BC Provincial Tax Brackets 2025
| Taxable Income | BC Rate |
|---|---|
| $0 – $45,654 | 5.06% |
| $45,655 – $91,310 | 7.70% |
| $91,311 – $104,835 | 10.50% |
| $104,836 – $127,299 | 12.29% |
| $127,300 – $172,602 | 14.70% |
| $172,603 – $240,716 | 16.80% |
| Over $240,716 | 20.50% |
Alberta Provincial Tax Brackets 2025
| Taxable Income | Alberta Rate |
|---|---|
| $0 – $148,269 | 10% |
| $148,270 – $177,922 | 12% |
| $177,923 – $237,230 | 13% |
| $237,231 – $355,845 | 14% |
| Over $355,845 | 15% |
Quebec Provincial Tax Brackets 2025
| Taxable Income | Quebec Rate |
|---|---|
| $0 – $51,780 | 14% |
| $51,781 – $103,545 | 19% |
| $103,546 – $126,000 | 24% |
| Over $126,000 | 25.75% |
CPP and EI Contributions 2025
- CPP (Canada Pension Plan): 5.95% on earnings between $3,500 and $68,500. Maximum contribution: $3,867.50
- CPP2 (enhanced): 4% on earnings between $68,500 and $73,200. Maximum: $188
- EI (Employment Insurance): 1.66% on insurable earnings up to $63,200. Maximum premium: $1,049.12
Frequently Asked Questions
How does Canada's marginal tax rate work?
Canada uses a progressive (marginal) tax system. You pay the stated rate only on the portion of income within each bracket — not on all your income. For example, if you earn $70,000, you pay 15% on the first $57,375, and 20.5% only on the remaining $12,625. Your overall effective rate will be lower than your top marginal rate.
Do newcomers to Canada pay income tax?
Yes. Once you become a Canadian resident for tax purposes, you must file a Canadian tax return and pay tax on your worldwide income. In your first year, you may only owe tax from your date of arrival. You'll also be eligible for various credits and deductions from your first year of Canadian residence.
Which province has the lowest income tax in Canada?
Alberta has the lowest combined federal + provincial top marginal rate for most income levels, largely because its top provincial rate (15%) doesn't kick in until $355,845. For typical incomes under $148,269, Alberta charges a flat 10% provincial rate. Saskatchewan is competitive for lower incomes.
What is the basic personal amount for 2025?
The federal basic personal amount for 2025 is $16,129. This is a non-refundable tax credit that effectively means you pay no federal income tax on the first $16,129 of income. Each province also has its own basic personal amount (typically $100–$21,000 depending on the province).
When do I need to file my Canadian tax return?
The standard deadline for filing your Canadian personal income tax return (T1) is April 30 each year for the previous tax year. If you or your spouse are self-employed, you have until June 15 to file, but any taxes owed are still due April 30. Your first return covers income from your date of arrival to December 31.