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Canadian Retirement Tools

Marginal Tax Rate in Canada

See the combined federal and provincial marginal tax rate for your province — the rate on your next dollar of income. Pick your province below for its full 2026 bracket table and a rate-lookup tool.

Choose your province or territory

Coming soon

These provinces and territories aren’t published yet — we only show brackets once verified against CRA-published rates: Quebec, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Yukon, Northwest Territories, Nunavut.

How marginal tax rates work in Canada

Canada taxes income progressively at two levels — federal and provincial. Each bracket’s rate applies only to the income that falls inside it, so earning one more dollar never raises the tax on the dollars you already earned. The rate on that next dollar is your marginal rate; your average rate (total tax ÷ total income) is always lower.

For retirees, the marginal rate is the number that matters when deciding how much to take from a RRIF or RRSP in a given year, or how much room you have before the OAS clawback begins. Our next-bracket calculator works out exactly how much you can withdraw before crossing into a higher bracket.

Frequently asked questions

What is a marginal tax rate?

Your marginal tax rate is the tax you pay on your next dollar of income — the rate of the bracket you're currently in. It's higher than your average rate because Canada taxes income progressively: each bracket's rate applies only to the income inside that bracket.

How do federal and provincial tax rates combine in Canada?

You pay both federal and provincial income tax. Your combined marginal rate is the federal rate plus your province's rate at your income level. Because the federal and provincial bracket thresholds don't line up, your combined rate steps up at each threshold you cross.

Why does the marginal rate matter for retirement?

When you withdraw from a RRIF, LIF, or RRSP, that money is taxed at your marginal rate. Knowing where the next bracket sits helps you decide how much to withdraw in a year without pushing income into a higher bracket or triggering the OAS clawback.