Taxation Statistics in Canada

Disclaimer: The information provided in this article is for informational purposes only, may not be up to date, and should not be construed as financial, tax, or legal advice. It is always recommended to consult with a qualified financial advisor or tax professional before making any financial decisions.

Every country has its own taxation system based on a range of factors such as economic considerations, social and equity concerns, politics, and international agreements. In some countries, such as Canada with 13 provinces and territories, taxation is a little more complex with each province and territory adding their taxes on top of the federal taxes.

Understanding how you will be taxed is crucial when starting work or considering a new place to live. If you are moving to a different province or territory, you may be looking at a higher salary, but you could also be looking at a higher tax bracket. Not doing your homework on taxes could leave you worse off if you move to a province or territory with higher taxes.

In this article, we look at the current federal taxes in Canada as well as the tax brackets in all provinces and territories. We also look at other taxes that Canadians have to pay and how Canada ranks for taxes compared to other countries.

Taxation Statistics for Canadians

• The federal income tax in 2026 is between 15% and 33%.
• The lowest provincial/territorial tax percentage varies from 4% in Nunavut to 10% in Alberta.
• Quebec has the highest top tax percentage with anything above $119,910 taxed at 25.75%.
• The average tax percentage in Canada is 25.4%.
• The sales tax in Canada ranges from 5% to 15% depending on the province/territory.
• Based on the highest federal tax bracket, Canada ranks 25th highest for personal income tax in the world.
• The Ivory Coast has the highest personal income tax in the world at 60%.
• Guatemala’s income tax, at 7%, is the lowest in the world when you exclude countries with 0% income tax.
• 12 countries have no personal income tax as of 2025/2026.

Taxation in Canada

Because Canada has both federal and provincial/ territorial taxes, you need to deduct both from your wages to know how much you will get at the end of the week or a month. Below, you will find details of the federal income tax followed by the income tax brackets for the Canadian provinces and territories.

Federal Income Tax Brackets

The federal income tax rates apply to anyone living in Canada regardless of the province or territory they live in. There are different tax brackets and how much federal tax you pay depends on your income. Below are the tax brackets in 2026.

• Up to $58,523: 14%
• $58,523 – $117,045: 20.5%
• $117,045 – $181,440: 26%
• $181,440 – $258,482: 29%
• Over $258,482: 33%

How to Calculate Federal Tax

When you calculate your federal taxes, you do not deduct the same percentage of your whole earnings unless you earn less than $58,523. If your income is below that, you deduct 14% of your income.

When you make more than $58,523, for example, if your income is $75,000, you will be taxed at 14% up to $58,523 and then 20.5% on the remaining income.

If your income is $120,000, you would pay 14% on the first $58,523, then 20.5% up to $117,045, and then 26% on the remaining income.

If your income is $200,000, you would pay 14% on the first $58,523, 20.5% up to $117,045, 26% up to $181,440, and then 29% on the remaining income.

If your income is $300,000, you would pay 14% on the first $58,523, 20.5% up to $117,045, 26% up to $181,440, 29% up to $258,482, and then 33% on the remaining income.

Provincial and Territorial Income Tax Brackets

As mentioned above, Canadians pay provincial or territorial taxes on top of the federal income taxes. The income tax thresholds and the number of tax brackets variest between the provinces and territories. Below is a list of the income brackets for provinces and territories in Canada.

Alberta

• up to $61,200: 8%
• between $61,200 and $154,259: 10%
• between $154,259 and $185,111: 12%
• between $185,111 and $246,813: 13%
• between $246,813 and $370,220: 14%
• above $370,220: 15%

British Columbia

• up to $50,363: 5.06%
• between $50,363 and $100,728: 7.7%
• between $100,728 and $115,648: 10.5%
• between $115,648 and $140,430: 12.29%
• between $140,430 and $190,405: 14.7%
• between $190,405 and $265,545: 16.8%
• above $265,545: 20.5%

Manitoba

• up to $47,000: 10.8%
• between $47,000 and $100,000: 12.75%
• above $100,000: 17.4%

New Brunswick

• up to $52,333: 9.4%
• between $52,333 and $104,666: 14.0%
• between $104,666 and $193,861: 16.0%
• above $193,861: 19.5%

Newfoundland and Labrador

• up to $44,678: 8.7%
• between $44,678 and $89,354: 14.5%
• between $89,354 and $159,528: 15.8%
• between $159,528 and $223,340: 17.8%
• between $223,340 and $285,319: 19.8%
• between $285,319 and $570,638: 20.8%
• between $570,638 and $1,141,275: 21.3%
• above $1,141,275: 21.8%

Northwest Territories

• up to $53,003: 5.9%
• between $53,003 and $106,009: 8.6%
• between $106,009 and $172,346: 12.2%
• above $172,346: 14.05%

Nova Scotia

• up to $30,995: 8.79%
• between $30,995 and $61,991: 14.95%
• between $61,991 and $97,417: 16.67%
• between $97,417 and $157,124: 17.5%
• above $157,124: 21.0%

Nunavut

• up to $55,801: 4%
• between $55,801 and $111,602: 7%
• between $111,602 and $181,439: 9%
• above $181,439: 11.5%

Ontario

• up to $53,891: 5.05%
• between $53,891 and $107,785: 9.15%
• between $107,785 and $150,000: 11.16%
• between $150,000 and $220,000: 12.16%
• above $220,000: 13.16%

Prince Edward Island

• up to $33,928: 9.50%
• between $33,929 and $65,820: 13.47%
• between $65,821 and $106,890: 16.60%
• between $106,891 and $142,520: 17.62%
• above $142,520: 19.00%

Quebec

• up to $54,345: 14%
• between $54,345 and $108,680: 19%
• between $108,680 and $132,245: 24%
• above $132,245: 25.75%

Saskatchewan

• up to $54,532: 10.5%
• between $54,532 and $155,805: 12.5%
• above $155,805: 14.5%

Yukon

• up to $58,523: 6.40%
• between $58,523 and $117,045: 9.00%
• between $117,045 and $181,440: 10.90%
• between $181,440 and $500,000: 12.80%
• above $500,000: 15.00%

How Much Taxes Do Canadians Pay on Average?

Based on the most recent available data (tax year 2023), the average tax percentage in Canada is around 25.8% of gross annual income when federal and provincial/territorial taxes are combined. This is the average tax across all income levels and regions. On average, Canadians take home about 74.2% of their gross income after paying income taxes.

However, for most people, the combined taxes are higher or lower than the average, depending on how much they earn and which province or territory they pay taxes in.

What Other Taxes Are There in Canada?

In addition to your income, you may be liable to pay other taxes in Canada. Each province and territory applies these taxes differently.

GST

The Goods and Services Tax, GST for short, is a 5% levy, which is added by the federal government to most goods and services. This tax applies in all provinces and territories. Some provinces and territories will also have additional sales taxes, while others use GST only.

PST

The PST stands for Provincial Sales Tax and is used in some provinces and territories in addition to GST. The rate of the PST depends on the territory or province you are in.

HST

HST is short for Harmonized Sales Tax. This tax combines GST and PST and is used by some provinces and territories instead of the two separate sales taxes. In most provinces/ territories where HST is in use, the percentage is 15% except in Ontario where it is 13%.

QST

QST or the Quebec Sales Tax is only used in Quebec. This provincial sales tax is set at 9.975%.
Below you will find a summary of sales taxes used in each province/ territory in Canada.

• Alberta: GST 5%
• British Columbia: GST 5% and PST 7%
• Manitoba: GST 5% and PST 7%
• New Brunswick: HST 15%
• Newfoundland and Labrador: HST 15%
• Northwest Territories: GST 5%
• Nova Scotia: HST 14%
• Nunavut: GST 5%
• Ontario: HST 13%
• Prince Edward Island: HST 15%
• Quebec: QST 9.975%
• Saskatchewan: GST 5% and PST 6%
• Yukon: GST 5%

The Lowest and Highest Taxes in Canada

It can be quite confusing trying to work out which province/ territory has the lowest and highest taxes because of the varying thresholds and rates. However, for overall taxation, Alberta is the cheapest, while Quebec has the highest taxes. This is because the government of Quebec finances things that are not financed in other provinces/ territories.

How Do Canada’s Tax Rates Compare Internationally?

Canada is seen as a country with high tax rates and ranks 25th out of 172 countries for the highest income taxes based on the highest federal income bracket. However, if countries were compared based on the average taxes paid by the residents, Canada would rank lower.

Countries with the Highest Income Taxes

According to global tax rankings based on the highest marginal personal income tax rates, the country with the highest tax rate is the Ivory Coast, which has one of the strongest economies in West Africa and a top tax rate of 60%. The sales tax there is around 18% and the corporate income tax for businesses is 25%. The 60% income tax rate applies at the highest tier of income.

Following the Ivory Coast are Finland and Japan. Finland has a top income tax rate of about 56–57% although most people do not pay anywhere near that. The sales tax is 24% and the corporate tax is 20% in Finland. Japan’s top combined personal income tax rate is about 55.9%, with a sales tax of 10% and corporate tax around 30%.

Austria and Denmark also have high personal income tax rates. Austria’s top rate is 55%, and Denmark’s rate is around 55.9%, placing them near the top of global personal income tax rankings.

Countries with the Lowest Income Taxes

If we exclude countries with no personal income tax, one of the countries with one of the lowest top personal income tax rates is Guatemala with about 7%. The sales tax in Guatemala is around 12% and the corporate tax is about 25%. The 7% income tax rate applies to the highest bracket of income in that country.

Montenegro has one of the second‑lowest flat personal income tax rates at 9%, while the sales tax is about 21% and the corporate tax is around 9% (often with additional local taxes). Several countries have a personal income tax rate of 10%, including Bulgaria and Romania.

Countries with 0% personal income tax

There are some countries in the world where individual income is not taxed at all. These countries include the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, the Cayman Islands, Brunei, Bermuda, Bahrain, the Bahamas, Turks and Caicos Islands, and Vanuatu, all of which do not impose a personal income tax on residents.

Conclusion

Canada has a more complex taxation system than many other countries because there is no single system that applies across the whole country. Canadians are taxed at the federation tax rate as well as the provincial/ territorial tax rate. Each province and territory has its own tax brackets and tax rates. When working out your total income tax, you need to include both federal and provincial/territorial taxes.