Canada tax rates
The top rates a resident individual pays on each kind of income, computed by the Sovereign tax engine from its Canada tax profile.
Tier 1 — every figure rests on a statute or a tax authority page. Sources last checked 9 November 2026. Figures last changed 3 November 2026. Profile last reviewed 2 October 2026.
Scroll across the table to see all tax rates.
| Where | Salary | Capital gains | Dividends | Interest | Rent | Crypto gains |
|---|---|---|---|---|---|---|
| National level only | 33% | 16.5% | 24.81% | 33% | 33% | 16.5% |
| Ontario | 53.53% | 26.76% | 39.34% | 53.53% | 53.53% | 26.76% |
| British Columbia | 53.5% | 26.75% | 36.54% | 53.5% | 53.5% | 26.75% |
| Quebec | 53.31% | 26.65% | 40.11% | 53.31% | 53.31% | 26.65% |
| Alberta | 48% | 24% | 34.31% | 48% | 48% | 24% |
Each figure is the tax on one more unit of a very large amount of that income, with every layer the engine models: surtaxes and uncapped social contributions included. It is the top marginal rate, not the average rate you pay on all your income. Each region adds its own tax to the national level; regions not in the table are not in our model.
What is the top income tax rate in Canada?
The top rate on a salary is 33% at the national level, before regional tax. It is the tax on each extra unit of a very high salary, with surtaxes and uncapped social contributions included. With regional tax included, the top rate on a salary runs from 48% in Alberta to 53.53% in Ontario (4 regions modelled). The income tax scale alone reaches 33% above CAD 258,482.
How are capital gains taxed in Canada?
The top rate on a long-term capital gain is 16.5% at the national level, before regional tax. The rate does not depend on how long you held the asset.
How are dividends and interest taxed in Canada?
The top rate is 24.81% on dividends and 33% on interest at the national level, before regional tax. The dividend rate is for a dividend from a company resident in Canada, after the credit for the company's tax.
How is crypto taxed in Canada?
Canada taxes a gain on crypto assets as a capital gain, at up to 16.5%.
Does Canada tax foreign income?
Yes. Canada taxes its residents on their worldwide income. A tax treaty or a credit for foreign tax can reduce the tax on income from abroad.
Does Canada have a wealth tax?
No. Canada has no recurring national tax on net wealth in our model. Property taxes and taxes on gifts or inheritances are separate.
Does Canada have an exit tax for individuals?
Yes. Canada can tax unrealised gains, or some of them, when a resident individual moves abroad. The conditions depend on the asset and the holding.
What special tax regimes does Canada have?
Our profiles list one regime: Lifetime Capital Gains Exemption (LCGE) — information only; not numerically modelled. It has its own conditions.
When do you become tax resident in Canada?
The Canada day test (sojourning 183 days): 183 days in the calendar year. Most residents are factual residents: significant residential ties such as a home, a spouse or partner, or dependants in Canada make you resident whatever your days.
Residence decides whether Canada taxes you on these rates. See the Canada day-count test and count your own days.
Sources
The Canada profile cites 8 sources for these rules, 8 of them from a government or a statute.
- CRA - Current year tax rates and income brackets (2026) · official, retrieved 2026-10-02
- CRA T4127 - Payroll Deductions Formulas, 122nd edition (1 January 2026) · official, retrieved 2026-10-02
- CRA - Calculating and reporting your capital gains and losses · official, retrieved 2026-10-02
- Income Tax Act (Canada) ss. 82(1)(b), 121 - gross-up and deduction for taxable dividends · official, retrieved 2026-10-02
- CRA - Line 40425, Federal dividend tax credit · official, retrieved 2026-10-02
- CRA - Indexation adjustment for personal income tax and benefit amounts · official, retrieved 2026-10-02
- CRA 5000-D1 Federal Worksheet (2025) - lines 12000 and 40425; T1 return Part C · official, retrieved 2026-10-02
- CRA - Reporting income from crypto-asset transactions · official, retrieved 2026-11-09
The model covers the general rules for a resident individual. It does not cover every deduction, credit, tax treaty or local tax, and rules change after the check date above. Did you find an error? Tell us, with the source.
Compare Canada with other countries
Top rates do not show what you would pay. Sovereign applies these rules to your own assets, income and debts, and compares the result across 165 countries. Put Canada side by side with other countries, see every country or try the live demo.
Other countries in North America: Mexico, United States.