📐 Marginal Tax Rate Calculator
Your marginal rate is what the next dollar costs. Your average rate is what your whole income costs. They are very different numbers, and confusing them is why people believe a raise can leave them worse off.
Marginal rate
29.65%
What the next dollar is taxed at. 20.50% federal + 9.15% provincial.
Average rate
19.73%
What your whole income is taxed at — $17,757 on $90,000.
The next $1,000 you earn
$704
you keep
$297
goes to tax
$852
you keep if it were a capital gain (14.82% rate)
Your next threshold
At $94,410 — $4,410 away — you cross the Ontario surtax and your marginal rate goes from 29.65% to 31.48%.
Only the dollars above that line are taxed at the higher rate. Everything below it keeps being taxed exactly as it is now — which is why crossing a bracket can never reduce your take-home pay.
Marginal vs average across incomes — Ontario
The marginal line steps up at each bracket. The average line always sits below it and rises smoothly — that gap is the whole point. Dashed line marks your income.
Federal brackets
- Up to $58,52314.00%$58,523 of your income$8,193 tax
- $58,523 – $117,04520.50%$31,477 of your income$6,453 tax
- $117,045 – $181,44026.00%
- $181,440 – $258,48229.00%
- Over $258,48233.00%
Ontario brackets
- Up to $53,8915.05%$53,891 of your income$2,721 tax
- $53,891 – $107,7859.15%$36,109 of your income$3,304 tax
- $107,785 – $150,00011.16%
- $150,000 – $220,00012.16%
- Over $220,00013.16%
The same $90,000 across Canada
$7,384 separates Nunavut from Nova Scotia at this income.
| Province | Marginal | Average | Total tax | Take-home |
|---|---|---|---|---|
| Nunavut | 27.50% | 18.02% | $16,218 | $73,782 |
| British Columbia | 28.20% | 19.46% | $17,511 | $72,489 |
| Northwest Territories | 29.10% | 19.61% | $17,651 | $72,349 |
| Ontario | 29.65% | 19.73% | $17,757 | $72,243 |
| Yukon | 29.50% | 19.85% | $17,868 | $72,132 |
| Alberta | 30.50% | 20.37% | $18,333 | $71,667 |
| Saskatchewan | 33.00% | 22.85% | $20,561 | $69,439 |
| Manitoba | 33.25% | 23.55% | $21,197 | $68,803 |
| New Brunswick | 34.50% | 23.68% | $21,309 | $68,691 |
| Newfoundland and Labrador | 36.30% | 24.27% | $21,847 | $68,153 |
| Quebec | 36.12% | 24.48% | $22,036 | $67,964 |
| Prince Edward Island | 37.10% | 25.10% | $22,593 | $67,407 |
| Nova Scotia | 37.17% | 26.22% | $23,602 | $66,398 |
Sorted by total tax, lowest first. Income tax only — it ignores sales tax, health premiums, and the very different cost of living between these places.
What these numbers mean
- A raise can never make you worse off. Brackets are marginal: only the dollars above a threshold are taxed at the higher rate. Everything below keeps its old rate.
- Marginal is the number for decisions. Deciding whether to contribute to an RRSP, take overtime, or realize a capital gain? Use the marginal rate — it is what changes.
- Average is the number for budgeting. It tells you what you actually keep. It is always lower than your marginal rate.
- Capital gains are taxed at half. Only 50% of a gain is included in income, so the effective rate is half your marginal rate — 14.82% here. Canadian dividends get their own preferential treatment through the dividend tax credit, which this tool does not model.
- Benefit clawbacks are the hidden marginal rate. Losing the Canada Child Benefit, GST/HST credit, or OAS as income rises can push your real marginal rate well above what any bracket table shows. Families with young children often face effective rates above 60%.
2026 federal and provincial brackets, including the Ontario surtax and the 16.5% Quebec federal abatement. Assumes the basic personal amount is your only credit, and treats the amount entered as taxable income after deductions. Excludes CPP, EI, the Ontario Health Premium, and benefit clawbacks. Estimates for educational purposes only.