# Marginal Tax Rate Calculator Canada 2026 > Find your 2026 combined federal and provincial marginal tax rate on salary, capital gains and dividends, with a bracket table for your province. Source: https://trykosh.com/tools/marginal-tax-rate-calculator Free tool - Income tax # Marginal tax rate calculator for 2026 See how much of your next dollar goes to tax in your province, on salary and interest, capital gains and dividends. It's the number that decides what an RRSP contribution saves and what a raise is worth. Rules checked 31 October 2026Free - no sign-upRuns in your browser Marginal tax rate in Ontario 31.5% Of your next $1,000 of salary or interest, about $315 goes to tax On capital gains**15.7%** On eligible dividends**6.2%** On other dividends**21.7%** Taxable income $100,000 Income tax on it $21,521 Average tax rate 21.5% Marginal rate: salary, interest, rent 31.5% Marginal rate: capital gains (half taxable) 15.7% Marginal rate: eligible dividends 6.2% Marginal rate: non-eligible dividends 21.7% Marginal rate on ordinary income at other incomes, Ontario 2026 Taxable income Marginal rate Average rate $30,000 19.1% 10.2% $50,000 19.1% 14.3% $60,000 29.7% 15.7% $75,000 29.7% 18.7% $90,000 29.7% 20.5% $100,000 31.5% 21.5% $120,000 43.4% 23.8% $150,000 45% 27.8% $175,000 45% 30.2% $200,000 63.3% 32.4% $250,000 49.8% 35.8% $300,000 53.5% 38.6% Measured on the next $1,000, so credits, the federal BPA phase-out, Ontario's surtax and health premium are all reflected. A negative dividend rate means the credit also shelters some of your other income. ## Let Kosh do this with your real numbers. Upload a T4, pay stub or notice of assessment and Kosh works out your federal and provincial tax from your real numbers, finds the deductions and credits you're missing and reminds you before every CRA deadline. Start with a free money checkup; Kosh Pro is CA$19 a month after a 7-day free trial. [Start free](/signup?via=tool-marginal-tax-rate-calculator) ## How the marginal tax rate calculator works Your marginal tax rate is the combined federal and provincial tax on the next dollar of income. Enter your taxable income and province and the calculator adds $1,000 and measures how much more tax you would owe. Measuring it this way captures things a bracket chart leaves out: the federal basic personal amount shrinking between $181,440 and $258,482, Ontario's surtax and health premium, and the Quebec abatement. Different kinds of income are taxed differently. Only half of a capital gain is taxable, so its marginal rate is about half the rate on salary. Dividends from Canadian companies are grossed up and then get a dividend tax credit, which usually leaves a lower rate than salary. ## Worked example: Amira earns $120,000 in Calgary Amira's taxable income is $120,000 in Alberta. Her income tax is $27,610, an average of 23%, but her next $1,000 of salary costs $360 in tax: a 36% marginal rate. A capital gain would be taxed at 18% and an eligible dividend at about 17.7%. Marginal tax rate in Alberta 36% Of your next $1,000 of salary or interest, about $360 goes to tax On capital gains**18%** On eligible dividends**17.7%** On other dividends**28.5%** Taxable income $120,000 Income tax on it $27,610 Average tax rate 23% Marginal rate: salary, interest, rent 36% Marginal rate: capital gains (half taxable) 18% Marginal rate: eligible dividends 17.7% Marginal rate: non-eligible dividends 28.5% Measured on the next $1,000, so credits, the federal BPA phase-out, Ontario's surtax and health premium are all reflected. A negative dividend rate means the credit also shelters some of your other income. [Load this example into the calculator ->](?province=AB&income=120000#calculator) ## Good to know - An RRSP contribution saves roughly your marginal rate, as long as the deduction doesn't drop you into a lower bracket. - If your rate is lower now than you expect in retirement, a TFSA can beat an RRSP. - A negative dividend rate means the dividend tax credit also reduces tax on your other income. ## Frequently asked questions What is my marginal tax rate in Canada? It's the federal rate for your bracket plus your provincial rate, adjusted for credits and surtaxes. Enter your taxable income and province above to get it for 2026. Does a higher bracket mean I take home less? No. Only the dollars above the bracket line are taxed at the higher rate, so a raise always leaves you with more after tax, even if the rate on those extra dollars is higher. Why is the rate on capital gains lower? Only 50% of a capital gain is included in income, so the tax on a gain is roughly half your marginal rate on salary. ## Sources and assumptions - [CRA: Tax rates and income brackets for individuals](https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/canadian-income-tax-rates-individuals-current-previous-years.html) - [TaxTips.ca: Eligible dividend tax credit rates](https://taxtips.ca/dtc/eligible-dividends/eligible-dividend-tax-credit-rates.htm) - [TaxTips.ca: Non-eligible dividend tax credit rates](https://www.taxtips.ca/dtc/non-eligible-dividend-tax-credit.htm) Rules and rates last checked on 31 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not registered with any Canadian securities regulator as an adviser or dealer, does not recommend specific securities, and does not hold your money or execute trades. Tax figures are estimates; confirm with the CRA or a qualified professional before acting. Investing carries risk.