TaxBuddy Knowledge Base
2025 Federal and Provincial Tax Brackets
A complete reference for Canada's progressive tax rates.
Canada uses a progressive tax system, meaning your income is divided into segments, each taxed at a different rate. Your 'marginal tax rate' is the percentage you pay on your last dollar of earned income.
1
The 2025 Federal Brackets
These apply to all Canadians outside of Quebec (who have separate provincial rates).
14.5% on the first $57,375
20.5% on the next portion up to $114,750
26% on the next portion up to $177,882
29% on the next portion up to $253,414
33% on any taxable income over $253,414
2
Provincial Tax Ranges
Your total tax rate is your federal rate plus your provincial rate.
Ontario: Brackets range from 5.05% to 13.16%.
British Columbia: Brackets range from 5.06% to 20.5%.
Alberta: Flat-ish tax with brackets from 10% to 15%.
Quebec: Highest provincial rates, ranging from 14% to 25.75%.
3
Marginal vs. Average Rate
Understanding the difference is key to tax planning.
Marginal Rate: The rate on your next dollar of income.
Average Rate: Your total tax divided by your total income.
Tax Planning: Only the marginal rate impacts decisions like RRSP contributions.
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