Canada’s income tax brackets for 2024, plus the maximum tax you’ll pay based on income

Indeed, having a sense of your taxes owed or owing can inform strategies you can deploy right now to minimize your final bill or enlarge your refund, such as contributing more to your registered retirement savings plan (RRSP) or first home savings account (FHSA) or making a meaningful donation to a deserving charity sooner rather than later.

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Accurately estimating the amount of tax you owe on your 2024 earnings starts with understanding the various federal and provincial tax brackets that apply to you. Below you’ll find tables for all the federal, provincial and territorial tax brackets applicable to your 2024 income. Use them to project your taxes payable (before deductions) by combining federal and provincial or territorial amounts owing.

How do tax brackets work in Canada?

Canada has what’s known as a “progressive tax system.” That means a payable tax rate increases as your income surpasses certain thresholds—like steps on a ladder.

The alternative to a progressive tax is a flat tax, where the same rate applies to all taxpayers, regardless of income. The GST is essentially a flat tax. No jurisdiction in Canada currently applies a flat tax to income taxes, however. Russia, for example, has a flat tax system. 

Simply put, the more money you earn in a year, the more of it you pay as a proportion of your total income for that year. But don’t worry about losing take-home pay if you get a big raise and end up in a higher bracket. Everyone, even the very rich, pays the same low rates on the first $30,000 or so they earn during the year. The rates payable increase, though, as you earn more and enter new tax brackets—income ranges where successively higher rates apply. The highest bracket you reach has what’s known as your marginal tax rate—the rate at which any additional income will be taxed.

Within Canada’s tax system, there are five federal tax brackets, each with its own rate. You also pay taxes to the provincial or territorial government where you live, and each has its own distinct tax brackets. We’ve broken down these tax structures to help you navigate your tax obligations effectively.

Find your Canadian federal, provincial and territorial tax brackets

What are the federal tax brackets in Canada for 2024?

How Canada’s federal tax brackets work

In Canada, federal tax rates apply only on the amount you earn within each federal tax bracket. This is also how most provincial tax brackets work as well—we’ll get to those below.

In 2024, the lowest federal tax bracket applies to the first $55,867 of your earnings. So, for example, if you made $50,000 from all sources of taxable income, including your salary, interest on your non-registered investments and savings accounts, taxable benefits and more—you would fall within Canada’s first federal tax bracket. That means you will pay 15% in federal tax on your $50,000 of income—that’s $7,500, not including deductions and claims.

To give an another example, in September 2024, the average weekly wage across Canada was $1,304.43, according to Statistics Canada. That comes to an average annual salary of $67,830.36.

That means the average working Canadian falls within the second federal tax bracket. They would pay 15% tax on their first $55,867, and 20.5% tax on their earnings above $55,867. That leaves them with $10,841.54 in federal taxes owing ($8,389.05 + $2,452.49).

How to use the federal tax bracket table

To use the table above, identify the tiers your total annual income falls into. Next, subtract the minimum dollar value of that range from your annual income. Multiply the resulting amount by the corresponding tax rate. Lastly, add the maximum total tax from the preceding bracket to estimate your federal taxes for the year 2024.

Here’s an example of how you would calculate your federal taxes owning, based on annual taxable income of $60,000 in 2024.

1. Identify the appropriate tier: The income amount falls within the second tier, which covers earnings from $55,867 to $111,733.
2. Calculate the amount within the tier: Subtract the lower boundary of that range from your annual income: $60,000 – $55,867 = $4,133.
3. Determine the tax rate: For the second tier, the tax rate is 20.5%.
4. Calculate the tax amount for this tier: Multiply the amount within the tier by the tax rate: $4,133 x 0.205 = $847.26.
5. Estimate your total federal taxes: To estimate your total federal tax liability for 2024, add this tier’s tax amount to the previous tier’s total tax amount, which would be $8,389.05 (from the first tier) plus $847.26, resulting in $9,236.31 in taxes payable.

Note: These taxable income calculations have yet to take into account potential deductions that can lower your taxable income, such as the basic personal tax credit ($15,705 for 2024), RRSP contributions and other deductions. Canadian tax brackets serve as a tool for getting an estimate of your federal tax liability, but the precise amount will only be determined when you complete your income tax return for the year.

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Provincial and territorial tax brackets in Canada

You’re not done yet. After you’ve calculated your federal taxes, the next step is to determine your tax bracket for your province or territory. (Remember these calculations do not include any potential tax deductions but they can help guide you on any tax saving opportunities, such as RRSP contributions.)

Canadians pay into two levels of taxation because different levels of government are responsible for different services. For instance, provincial governments manage healthcare, while national security, including the Canadian Armed Forces and the Royal Canadian Mounted Police (RCMP), falls under federal jurisdiction. Our taxes contribute to funding these services, depending on where you live. (There are also municipal taxes, but those are not taken from income but are calculated based on property owned in the municipality.)

Since income ranges and tax rates within tax brackets can change yearly, it’s crucial to stay updated on which bracket applies to you. Keep in mind that even if tax rates remain consistent, income ranges are typically adjusted annually to account for inflation.

How tax brackets work for Canadian provinces and territories

To estimate your provincial or territorial tax liability, follow similar steps to those outlined above for the federal tax brackets.

First, you’ll need to find the table representing your province or territory. Then, find your annual income within that table. If you’re in the first tax bracket, just multiply your annual income by the corresponding tax rate. It’s similar to what you did with federal tax rate chart. Now, subtract the minimum income value of that specific bracket from your total annual income. Then, multiply the result by the corresponding tax rate. Finally, add the maximum total tax from the preceding bracket, and that will give you your estimated provincial/territorial tax liability. Keep in mind that this calculation is done prior to considering any potential surtaxes, which we will explain further below.

Here are the tax brackets for all the provinces and territories in Canada for 2024: 

Find your provincial and territorial tax brackets

• Alberta tax brackets
• British Columbia tax brackets
• Manitoba tax brackets
• New Brunswick tax brackets
• Newfoundland tax brackets
• Northwest Territories tax brackets
• Nova Scotia tax brackets
• Nunavut tax brackets
• Ontario tax brackets
• Prince Edward Island tax brackets
• Quebec tax brackets
• Saskatchewan tax brackets
• Yukon tax brackets
• Surtaxes for Ontario and PEI

Alberta tax brackets 2024

British Columbia tax brackets 2024

Manitoba tax brackets 2024

New Brunswick tax brackets 2024

Newfoundland and Labrador tax brackets 2024

Northwest Territories tax brackets 2024

Nova Scotia tax brackets 2024

Nunavut tax brackets 2024

Ontario tax brackets 2024

Prince Edward Island tax brackets 2024

Quebec tax brackets 2024

Saskatchewan tax brackets 2024

Yukon tax brackets 2024

Who pays a surtax in Canada?

Examining the tax rates in Prince Edward Island and Ontario might suggest lower tax rates compared to other provinces, but these provinces impose a surtax on personal income, which is essentially like charging a tax on a tax.

Prince Edward Island surtax

In P.E.I., residents pay a 10% surtax, unless their basic provincial tax payable is $12,500 or less, in which case no surtax is applied. To determine the surtax, multiply your annual income by 0.10.

Ontario surtax

The Ontario surtax is more complex, so the calculation of what you might owe takes a few more steps, as outlined here: 

For 2024, if your base provincial tax is less than $5,554 you shouldn’t pay a surtax. If your base provincial tax is from $5,554 to $7,108, you pay 20% on the portion of provincial tax owed above $5,554. If your provincial tax exceeds $7,108 you will owe 20% on the portion of provincial tax over $5,554, plus 36% on the portion over $7,108. 

How to lower your income tax

Understanding tax brackets can help you figure out how much tax you’ll owe and if you’re due for a refund. That way you can be prepared ahead of the April 30, 2025, tax payment deadline and avoid having to pay interest and penalties on overdue taxes. 

To lower your tax bill, consider a proactive approach, like making monthly contributions to your RRSP; you have until March 1, 2025, to make contributions that qualify for a deduction on your 2024 taxes. 

To estimate tax savings from RRSP contributions, determine the tax rate as explained above, then multiply your total contribution by that rate for the approximate tax reduction or potential refund.

—with files from Sandra MacGregor

Read more about taxes in Canada:

• How to fill out a personal tax return
• How to file your taxes online in Canada
• Can you file multiple years of income taxes together in Canada?
• How to avoid tax on severance pay in Canada

About Michael McCullough

Michael is a financial writer and editor in Duncan, B.C. He’s a former managing editor of Canadian Business and editorial director of Canada Wide Media. He also writes for The Globe and Mail and BCBusiness.

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About Luca Tatulli

Luca Tatulli is the research assistant at MoneySense.ca. He fact-checks and provides research for our content, and he previously studied journalism at Centennial College.

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