What is the Basic Personal Amount?

A non-refundable tax credit worth 14% of $16,452 for most taxpayers in 2026, effectively making federal tax on your first ~$16,452 of income $0. It phases down to $14,829 for income between $181,440 and $258,482.

Why is my credit a percentage of the BPA rather than the BPA subtracted directly?

Canada's BPA is structured as a tax credit, not a deduction — so it's worth BPA × 14%, not the full BPA amount, in tax saved.

Does this include CPP or EI premiums?

No — Canada Pension Plan and Employment Insurance premiums are separate payroll deductions this calculator doesn't include.

How often are the brackets updated?

CRA indexes federal brackets and the BPA to inflation annually — the 2026 figures here reflect a 2.0% indexation increase over 2025.

Which province has the highest total tax burden?

It varies by income level, but Quebec and the Atlantic provinces generally have higher combined top rates, while Alberta tends to have one of the lower combined burdens.

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Canada Income Tax Calculator

2026 federal tax owed and after-tax income, using CRA brackets and the Basic Personal Amount.

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Last reviewed 2026-08-30

About the Canada Income Tax Calculator

Calculates 2026 Canadian federal income tax and after-tax income from an annual taxable income, using CRA's federal brackets and the Basic Personal Amount non-refundable credit. Federal tax only — provincial or territorial tax is a separate additional layer not modeled here.

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How to use it

Enter your annual taxable income.
Read your federal tax owed and income after federal tax in the result panel.
Add your own province or territory's tax to get your true total tax burden.

Formula

Gross federal tax is computed progressively across 5 brackets (14% to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482, 33% above). The Basic Personal Amount (BPA, $16,452 for income up to $181,440, tapering to $14,829 by $258,482) is converted into a non-refundable tax credit worth BPA × 14% and subtracted from gross tax.

Worked example

$70,000 of taxable income: gross federal tax of about $10,546, less the $16,452 × 14% = $2,303 Basic Personal Amount credit, for a net federal tax of about $8,243 — leaving roughly $61,757 after federal tax alone (before any provincial tax).

2026 CRA federal tax brackets

2026 CRA federal tax brackets
Bracket	Taxable income	Rate
1st bracket	Up to $58,523	14%
2nd bracket	$58,523 – $117,045	20.5%
3rd bracket	$117,045 – $181,440	26%
4th bracket	$181,440 – $258,482	29%
5th bracket	Over $258,482	33%

Interpreting your result

Models federal tax only. Every Canadian province and territory levies its own additional income tax with its own brackets — your real total tax bill will be higher. Also excludes CPP/EI premium deductions and other credits. Not tax advice.

Recommendations

• Add your province's own tax brackets on top of this federal-only figure for your true total — provincial rates and thresholds vary significantly.
• The Basic Personal Amount phases down (not out) between $181,440 and $258,482 — very high earners still get a reduced $14,829 credit, not zero.
• CRA brackets are indexed to inflation each year (2.0% for 2026) — re-check current figures if using this for a future tax year.

Frequently asked questions

No — this calculates federal tax only. Every province and territory levies its own additional income tax with different brackets.