Marginal Tax Rate Calculator for Canada
Find the tax rate on your next dollar of income in your province: ordinary income, capital gains and dividends, using the 2026 brackets. Last reviewed October 18, 2026.
At $100,000 in Ontario
Uses the CRA's 2026 federal and Ontario brackets. Rates are for the next dollar, not an average. Credits, the alternative minimum tax and income-tested benefits are not included. An estimate, not tax advice.
See every Ontario bracketWhat a marginal tax rate is
Canada taxes income in brackets: each slice of taxable income is taxed at its own rate, federal and provincial together. Your marginal rate is the rate on the last slice, so it is what an extra dollar of salary or interest costs you, and what a deduction or a capital loss saves you. It is not your average rate, which is always lower.
What this calculator assumes
- Rates are the CRA's 2026 federal and provincial brackets, with the Ontario surtax and the Quebec federal abatement.
- Capital gains show half of the ordinary rate because 50% of a gain is taxable (the proposed increase to two-thirds was cancelled in March 2025).
- Dividend rates include the gross-up and the federal and provincial dividend tax credits, shown from $58,523 of income.
- Not included: non-refundable credits such as the basic personal amount, the alternative minimum tax, clawbacks of benefits.
Frequently asked questions
What is the difference between a marginal and an average tax rate?
The average rate is total tax divided by total income. The marginal rate is the rate on the next dollar. Because lower slices are taxed at lower rates, the average rate is below the marginal rate.
Does a raise push all my income into a higher bracket?
No. Only the income above the bracket threshold is taxed at the higher rate.
Why is the capital gains rate half of the ordinary rate?
Only half of a capital gain is added to your income, so the effective rate on the gain is half of your marginal rate.
Why are dividend rates lower than the ordinary rate?
Dividends are grossed up, then reduced by a federal and a provincial dividend tax credit that reflects tax the corporation already paid. Eligible dividends get larger credits than non-eligible ones.
Related
Educational estimates, not tax, legal or investment advice. Talk to a licensed Canadian CPA or CFP before acting.