Federal Tax Calculator (Canada)
Calculate your Canadian federal income tax with a detailed bracket-by-bracket breakdown.
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Understanding Federal Income Tax in Canada
Canada uses a progressive federal income tax system with five tax brackets. You pay a higher rate only on the portion of income that falls into each bracket.
2024 Federal Tax Brackets
| Income Range | Tax Rate |
|---|---|
| $0 - $55,867 | 15% |
| $55,867 - $111,733 | 20.5% |
| $111,733 - $173,205 | 26% |
| $173,205 - $246,752 | 29% |
| Over $246,752 | 33% |
Worked Example: $95,000 Salary in Ontario — Federal Tax Bracket Walkthrough
David earns $95,000 of T4 employment income in 2024 and wants to see exactly how the federal portion of his tax bill is built up bracket by bracket — before any provincial tax, CPP, or EI is layered on. This is the same step-by-step the calculator runs internally; doing it by hand once makes the marginal-vs-effective rate distinction concrete.
Step 1 — Net taxable income. Assume no RRSP deduction and no union dues this year, so taxable income equals gross income: $95,000. This is the number that gets sliced across federal brackets.
Step 2 — Apply each bracket only to the slice that falls inside it.The 2024 federal brackets above show that David fills the entire first bracket and a portion of the second:
- Bracket 1 (15%) — $0 to $55,867: $55,867 × 15% = $8,380.05
- Bracket 2 (20.5%) — $55,867 to $95,000: ($95,000 − $55,867) × 20.5% = $39,133 × 20.5% = $8,022.27
- Bracket 3 (26%): $0 — David's income does not reach the $111,733 threshold.
Step 3 — Sum the bracket tax. $8,380.05 + $8,022.27 = $16,402.32 in federal tax before credits.
Step 4 — Apply the Basic Personal Amount (BPA) credit. For 2024 the federal BPA is $15,705 at the 15% lowest-bracket rate, worth $15,705 × 15% = $2,355.75 in non-refundable credit. (The BPA phases down for income above $173,205, which does not affect David.)
Step 5 — Federal tax payable. $16,402.32 − $2,355.75 = $14,046.57. David's marginal federal rate is 20.5% — every extra dollar of taxable income is taxed in the second bracket. His effective federal rate is $14,046.57 / $95,000 = 14.79%. The two are very different numbers, and confusing them is the single most common mistake people make when planning RRSP contributions. Provincial tax (Ontario, in this example), CPP, and EI are calculated separately and added on top to arrive at total take-home.
Frequently Asked Questions
What are the 2024 federal tax brackets in Canada?
2024 federal brackets: 15% on first $55,867, 20.5% on $55,867-$111,733, 26% on $111,733-$173,205, 29% on $173,205-$246,752, and 33% on income over $246,752.
What is the basic personal amount?
The basic personal amount (BPA) is the amount of income you can earn tax-free. For 2024, it is $15,705. This amount is indexed to inflation and increases each year.
Do I also pay provincial tax?
Yes, Canadian residents pay both federal and provincial/territorial income tax. This calculator shows federal tax only. Your total tax burden includes both components. Use our Canadian Tax Calculator for combined estimates.