This estimate is for informational purposes only. This tool provides a rough estimate and is not a substitute for the advice of an accountant. For advice tailored to your situation, Bankeo will find you the ideal accountant for free, with no obligation.
Find an AccountantEnter your annual taxable income and specify whether it is from employment or self-employment.
The tool applies the 2026 tax brackets for the province you select and combines federal and provincial or territorial taxes.
Total tax, marginal rate, effective rate, and take-home pay.
Two tax scales are stacked: federal tax and your provincial or territorial tax (13 jurisdictions).
The marginal rate is the rate that applies to your next dollar of income; the average effective rate is the average rate paid on your total income. Since the tax system is progressive, the effective rate is always lower than the marginal rate. The exact thresholds and rates depend on your province: the calculator uses those for the selected province and displays both rates.
…pay both the employee and employer portions of their contributions (QPP, and QPIP in Quebec), whereas employees pay only their share.
| Jurisdiction | Federal Tax | Provincial or Territorial Tax | What the tool displays |
|---|---|---|---|
| Canada (13 provinces and territories) | Federal tax brackets (1st rate for 2026: 14%) | Provincial or Territorial Tax Brackets | Combined Marginal and Effective Rates |
| Quebec | Progressive federal tax brackets (first 2026 rate: 14%) | Quebec tax brackets and the 16.5% Quebec abatement | Combined Tax, Marginal Tax Rate, and Average Tax Rate |
| Ontario | Progressive federal tax brackets (first 2026 rate: 14%) | Ontario tax rates, surtax, and health premium | Combined Tax, Marginal Tax Rate, and Average Tax Rate |
| Progressive Tax System | By income bracket | By income bracket | Marginal Rate vs. Effective Rate |
| Type of Income | Employee or Self-Employed | Employee or Self-Employed | Calculation adjusted to your employment status |
| Update | 2026 parameters | 2026 parameters | Based on the selected province |
The exact tax brackets, thresholds, and rates are displayed in the tool based on the selected province.
Income tax is progressive: taxable income is divided into brackets, and each bracket is taxed at its own rate. Only the portion that exceeds a threshold is taxed at the higher rate. In Canada, the number of brackets and the thresholds depend on your province: the first federal tax rate for 2026 is 14%, to which the provincial tax rate is added. The calculator applies the 2026 brackets for the province you select and combines federal and provincial or territorial taxes.
The marginal tax rate applies to your next dollar of income, not to your total income. Since the tax system is progressive, the higher your income, the higher the tax rate on the next dollar. The marginal rate is therefore always higher than the effective average rate, which is the total tax as a percentage of your total income. The calculator displays both.
Tax is calculated in brackets based on your taxable income: the rate for each bracket is applied to the corresponding portion of your income, and then federal and provincial taxes are added together. The basic personal amount (federal and provincial) and various credits reduce the amount owed. This calculator uses the 2026 parameters for the selected province to estimate your tax liability, marginal tax rate, and net income. Other credits and deductions are not included.
A self-employed person generally reports their net income (income minus expenses), which is added to their other income and taxed according to federal and provincial tax brackets. They are responsible for paying all of their social insurance contributions (QPP and QPIP in Quebec) and may be required to make tax instalments. The exact rules and thresholds depend on your province: an accountant can clarify them based on your specific situation.
The Canadian tax system provides for deductions and credits that reduce your tax liability: basic personal amount (federal and provincial), RRSPs, medical expenses, charitable donations, tuition fees, child care expenses, and expenses related to self-employment or a home office. Some credits vary from province to province. This calculator estimates the base tax; other credits and deductions are not included.
In Canada, tax returns are generally due by April 30 (June 15 for self-employed individuals, but the tax due is still payable by April 30). Late payments accrue interest, and tax instalments may be required if your tax liability exceeds a certain amount. Check the applicable tax calendar or consult an accountant.
Bankeo helps individuals, entrepreneurs, and self-employed people find the ideal accountant who specializes in personal taxes. The service is free for you. We understand your situation, then connect you with vetted accountants who can optimize your tax return and annual planning, and we’re here to support you every step of the way.
The basics for understanding your personal taxes.
Read the article →Tax implications based on your employment status.
Read the article →A simple way to file your taxes with peace of mind.
Read the article →Find an accountant to help with your T1 and TP1 tax returns.
Read the article →Bankeo helps individuals and business owners find the ideal accountant specializing in personal taxes. It’s a free, no-obligation service, and we’re here to support you every step of the way.
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