Canada Income Tax Calculator 2025/2026
Compare 2025 vs 2026 tax years side-by-side. Updated with CRA's latest rates: federal lowest bracket drops to 14% (2026), CPP YMPE $74,600, EI rate 1.61%. See exactly how much you'll save in 2026.
How to Use This Multi-Year Calculator
- Select tax year β Toggle between 2025 and 2026 to compare rates. The 2026 lowest bracket dropped to 14%.
- Choose your province β Rates updated for all provinces based on CRA and provincial budget releases.
- Enter income β See instant calculation with accurate brackets and deductions.
- Add RRSP β 2026 limit is $33,810; see your tax savings in real-time.
- Review comparison β The green note shows exactly how much you save in 2026 vs 2025.
Frequently Asked Questions: 2025 vs 2026 Tax Changes
2026 federal brackets [citation:6]: 14% on $0-$58,523; 20.5% on $58,523-$117,045; 26% on $117,045-$181,440; 29% on $181,440-$258,482; 33% over $258,482. The lowest rate dropped from 14.5% in 2025 to 14% in 2026 [citation:5].
The 2026 Year's Maximum Pensionable Earnings (YMPE) is $74,600 [citation:3]. The second earnings ceiling (YAMPE) is $85,000 [citation:7]. Base CPP contribution is 5.95% on earnings between $3,500 and $74,600. CPP2 is 4% on earnings between $74,600 and $85,000. Maximum total employee contribution: $4,230.45 (base) + $416 (CPP2) = $4,646.45 [citation:3].
The 2026 EI premium rate is 1.61% (down from 1.64% in 2025) [citation:4]. Maximum insurable earnings are $68,900 [citation:8]. Maximum annual premium: approximately $1,109. For Quebec residents, the rate is 1.28% due to QPIP [citation:4].
The 2026 RRSP contribution limit is $33,810 (up from $32,490 in 2025) [citation:7]. The TFSA dollar limit remains at $7,000 for 2026 [citation:7].
Alberta continues to have the lowest provincial rates for 2026: 8% on first $61,200, 10% to $154,259, 12% to $185,111, 13% to $246,813, 14% to $370,220, and 15% over $370,220 [citation:2]. Nunavut also has low rates starting at 4%.
