Canada Income Tax Calculator

What are Canada's 2024 federal income tax brackets?

Federal brackets for 2024: 15% on the first $55,867, 20.5% ($55,867–$111,733), 26% ($111,733–$154,906), 29% ($154,906–$220,000), 33% above $220,000. These apply after the basic personal amount ($15,705) is deducted. All amounts are indexed to inflation annually.

How does the Canadian tax system differ from the US?

Both use progressive brackets, but key differences: Canada has no standard deduction equivalent (uses a basic personal amount credit), RRSP contributions directly reduce taxable income (like a traditional IRA), and provinces levy a separate income tax (not just a flat surtax). Canada also has CPP and EI instead of Social Security and Medicare.

What is the basic personal amount (BPA)?

The federal BPA ($15,705 in 2024) is a non-refundable tax credit — not a deduction. It provides a 15% credit ($2,355) that all Canadian residents get. Higher earners above $165,430 see a reduced federal BPA phasing down to $14,156. Each province also has its own BPA, reducing provincial tax.

Which Canadian province has the lowest income tax?

Alberta has the lowest provincial income tax for most income levels — a flat 10% up to $148,269 with a generous $21,003 provincial basic personal amount. Alberta also has no provincial sales tax (PST). Quebec has the highest provincial rates (up to 25.75%) but also the most generous provincial benefits (subsidized daycare, etc.).