Canadian Income Tax Calculator 2026

How this is worked out, and what it leaves out

The basics. Income is added up (employment, self-employment, other income, 50% of capital gains, and dividends grossed up by 38% for eligible and 15% for other dividends). Deductions are subtracted, the OAS recovery tax is deducted if it applies, and federal and provincial tax are worked out on their own brackets. Credits are then subtracted: the basic personal amount (the federal one is reduced for incomes between $181,440 and $258,482, and Manitoba's between $200,000 and $400,000), the Canada employment amount, CPP or QPP and EI, and, for people 65 and over, the federal and provincial age and pension income amounts. Medical expenses use the 3% rule (or the dollar cap if lower) federally and in each province. Donations get the first-$200 rate, the higher rate above it, and the top rate where one applies (federal 33% and British Columbia 20.5% on the part of a gift that falls in the top bracket; Quebec 25.75%). Dividend credits, the Ontario surtax and Ontario Health Premium are included.

Quebec. Quebec residents file a separate provincial return, get a 16.5% federal abatement, pay QPP, QPIP and a lower EI premium, and use Quebec’s credits: the age and retirement income amounts (reduced by family net income), the 20% medical credit, and the deduction for workers (the 2026 maximum is an estimate). Quebec’s own alternative minimum tax and its refundable credits (solidarity credit, work premium) are not included.

Pension splitting. For a couple, the calculator tries every split from 1% to 50% of one spouse’s pension, RRIF or annuity income (age 65 and over) and shows the one with the lowest combined tax. The split also changes the age and pension credits and the OAS recovery tax, which is built in.

Alternative minimum tax (federal, since 2024). 20.5% of adjusted taxable income above $181,440, where 100% of capital gains count, dividends count at their cash amount with no credit, and only half of most credits (80% of the donation credit) are allowed. If it is higher than regular federal tax, the difference is added. The provincial AMT is estimated at 33.7% of the federal AMT; provinces use different percentages. AMT paid can be recovered against regular tax in the next seven years, which is not modelled.

Refundable benefits. The Canada Workers Benefit (2025 CRA amounts indexed by 2.0%), the Canada Groceries and Essentials Benefit (the enriched GST/HST credit, July 2026 to June 2027) and the Canada Child Benefit (July 2026 to June 2027) are shown separately because the CRA bases them on last year’s family net income.

Not included: the spousal, caregiver, disability, tuition and other less common credits; provincial low-income tax reductions and provincial benefits; foreign income and credits; business expenses beyond the net figure you enter; tax on split income and corporate planning; and instalments. Use it to compare options, then confirm with tax software or a CPA.

How the figures were checked. The tax tables were checked against the CRA indexation notice, provincial finance ministries and published provincial tables. The engine reproduces the published top combined federal and provincial rate for ordinary income, capital gains, eligible dividends and other dividends in all 13 jurisdictions (KPMG and other published 2026 tables), which also confirms the dividend tax credits and the Ontario surtax.