Marginal Tax Rate Calculator

Your marginal tax rate is the share of your next dollar of taxable income that goes to income tax. This calculator finds it for any province or territory, along with your federal and provincial tax and your average rate, using the 2026 figures in this site’s tax bracket data. It is part of the income tax hub.

How the calculator works

Enter your taxable income (income after deductions such as RRSP contributions) and your province or territory. The calculator works out your federal and provincial or territorial income tax with the basic personal amounts, then adds $100 to your income and works it out again: the extra tax is your marginal rate. Done that way, the rate includes everything that changes with income, not only the bracket rates:

• the Ontario surtax and Health Premium;
• the federal basic personal amount shrinking between $181,440 and $258,482 of net income;
• the phase-out of Manitoba’s basic personal amount (Since the 2025 tax year, Manitoba's basic personal amount is phased out over net income from $200,000 to $400,000, so someone with net income of $400,000 or more gets none.);
• the low-income tax reductions in British Columbia and New Brunswick;
• the Quebec abatement, which lowers the federal rate for Quebec residents.

It claims no credits besides the basic personal amounts, so CPP, EI and other credits are not in the figures. For tax on a salary with CPP and EI, use the salary after tax calculator or the income tax calculator.

Why your marginal rate rises in steps

Each tax rate applies only to the part of your taxable income that falls in its bracket, not to all of it, so moving into a higher bracket raises the tax only on the income above that threshold; provincial or territorial tax applies in addition to federal tax. Your average rate (total tax divided by income) is therefore generally lower than your marginal rate. The full federal and provincial bracket tables are on the tax brackets page.

Marginal rates by province

These come from the same data as the calculator. Quebec’s federal rate is lower because of the abatement: Quebec residents file a separate Quebec return with Revenu Québec, and their federal tax is reduced by the refundable Quebec abatement of 16.5% of basic federal tax; someone with a business establishment outside Quebec calculates it on Form T2203. Ontario’s provincial rate includes the surtax: Ontario adds a surtax on top of its basic provincial tax: 20% of Ontario tax above $5,818 plus 36% of Ontario tax above $7,446 (2026 thresholds), which raises Ontario's top marginal rates above the bracket rates.

Marginal rates at a very high income

At that income the federal part is the top federal rate, 33% of each extra dollar, except in Quebec, where the abatement reduces it. The rest is the province’s or territory’s own rate at that income, plus the surtax in Ontario. The thresholds where each provincial rate starts are on the tax brackets page, and the Ontario and Quebec pages explain the surtax and the abatement.

Using your marginal rate

RRSP deductions. A deduction saves tax at your marginal rate, and at a lower rate for any part of it that reaches into a lower bracket. For an Ontario resident with $100,000 of taxable income, a $10,000 RRSP deduction lowers income tax by $3,058. The RRSP calculator and the RRSP vs TFSA calculator build on this.

Raises, overtime and side income. Extra income is taxed at your marginal rate, and on a salary CPP and EI also come off until you reach their yearly maximums. A $5,000 raise on an $80,000 Ontario salary adds $3,377 to take-home pay after income tax, CPP and EI. See the raise calculator, the overtime calculator and the side hustle tax calculator.

Bonuses. A bonus is employment income taxed at your marginal rate, or at a higher one on any part that crosses into the next bracket; the bonus tax calculator shows what one adds to your tax.

Related calculators

• Income tax calculator: full tax, CPP and EI on your income
• Salary after tax calculator: take-home pay by pay period
• Withholding tax calculator: tax taken off each paycheque
• Bonus tax calculator: tax on a bonus
• Capital gains tax calculator: tax on investment gains