Personal and corporate tax rates for 2026: federal, Quebec, and Ontario. Brackets, dividend parameters, and when to expect the next budget updates.
Published: · Last Reviewed: · Author: Anton Ivanov · 4 min read
Key facts
This page shows the tax rates used across iAssure calculators and is updated when budgets or CRA/Revenu Québec/Ontario rates change.
Personal rates vary by income type: employment, interest, eligible dividends, non-eligible dividends, and capital gains.
Corporate rates differ for small business (SBD), general, and investment income; Quebec and Ontario use the same provincial structure for 2026.
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This page and the calculators that use these rates should be updated after each federal and provincial budget and when CRA, Revenu Québec, or Ontario publish new rates.
Federal Personal Tax Brackets (2026)
Taxable income (over)
Not over
Rate
$0
$58,523
14%
$58,523
$117,045
20.5%
$117,045
$181,440
26%
$181,440
$258,482
29%
$258,482
—
33%
Quebec Personal Tax Brackets (2026)
Taxable income (over)
Not over
Rate
$0
$54,345
14%
$54,345
$108,680
19%
$108,680
$132,245
24%
$132,245
—
25.8%
Ontario Personal Tax Brackets (2026)
Taxable income (over)
Not over
Rate
$0
$53,891
5.05%
$53,891
$107,785
9.15%
$107,785
$150,000
11.16%
$150,000
$220,000
12.16%
$220,000
—
13.16%
Ontario applies a surtax on provincial tax over certain thresholds; effective top rate is higher than the bracket rate shown.
Federal Dividend & Capital Gains Parameters
Eligible dividends: Gross-up 38%; federal dividend tax credit 15.0198% of grossed-up amount.
Non-eligible dividends: Gross-up 15%; federal dividend tax credit 9.0301% of grossed-up amount.
Capital gains inclusion rate: 50% (one-half of the gain is taxable).
Provincial dividend tax credits apply on top of the federal credit; combined marginal rates on dividends depend on your province and income level (see sample tables below).
Corporate Tax Rates (CCPCs, 2026)
Combined federal + provincial rates for Canadian-controlled private corporations.
Rate type
Federal
Quebec
Ontario
Combined (Fed + QC)
Combined (Fed + ON)
Small business (SBD)
9%
3.2%
3.2%
12.2%
12.2%
General
15%
11.5%
11.5%
26.5%
26.5%
Investment income
38.67%
11.5%
11.5%
50.17%
50.17%
SBD business limit: $500,000 (reduced by the passive-income grind above $50,000 aggregate investment income).
RDTOH refund rate: 30.67% (on eligible dividends paid).
Payroll Deductions (2026)
Rates and maximums used for salary calculations (e.g. in the Salary vs Dividends tool). Update annually with CRA and Revenu Québec.
Approximate combined marginal tax rates at selected income levels. These are used for illustration; actual rates depend on your exact income and deductions.
Quebec
Income
Employment / interest
Eligible dividend
Non-eligible dividend
Capital gains
$50,000
37.5%
24.2%
35.2%
18.7%
$100,000
45.4%
31.8%
42.8%
22.7%
$150,000
48.8%
35.2%
46.2%
24.4%
$200,000
51.3%
37.2%
47.5%
25.6%
$258,482
53.3%
39.2%
48.7%
26.6%
Ontario
Income
Employment / interest
Eligible dividend
Non-eligible dividend
Capital gains
$50,000
37.3%
23.8%
34.8%
18.6%
$100,000
46.3%
31.8%
41.8%
23.1%
$150,000
49.8%
35.2%
45.2%
24.9%
$200,000
51.8%
37.2%
46.5%
25.9%
$258,482
53.5%
39.3%
47.7%
26.7%
When to Expect the Next Budget Updates
Federal: The federal budget is typically tabled in the fall (Budget 2025 followed this schedule). An economic and fiscal update often follows in the spring. Check budget.canada.ca for the next date.
Quebec: The Quebec budget is usually tabled in March. For 2026–2027, the budget was tabled March 18, 2026. Future dates are announced by the Minister of Finance.
Ontario: The Ontario budget is usually tabled in March or April. For 2026–2027, the budget was tabled March 26, 2026. Future dates are announced by the Minister of Finance.
Rates on this page are updated after budgets and official rate releases. The “Review before” date at the top is a reminder to check for new rates.
Official Sources
These rates are drawn from the following sources. Use them to verify or update the numbers:
This page is for reference only. The rates are used in iAssure’s illustrative calculators and are not a substitute for professional tax or legal advice. Rates may change after budgets or legislation. Confirm with the Canada Revenue Agency, Revenu Québec, or the Ontario Ministry of Finance for your situation.
FAQ
When are these rates updated?
Rates are reviewed when federal and provincial budgets are tabled (typically federal in the fall, Quebec and Ontario in March). The page shows an effective date and a review-before date.
Can I use these rates for my own calculations?
These rates are for reference and for use in our illustrative calculators. They are not a substitute for professional advice. Confirm with CRA, Revenu Québec, or Ontario for your situation.
Why do marginal rates differ by income type?
Employment and interest are fully taxable. Dividends get a gross-up and tax credit. Capital gains are only partly included in income. So combined marginal rates vary by type at the same income level.
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Summary
A single reference for current federal, Quebec, and Ontario tax rates: personal brackets, dividend gross-up and credits, corporate rates (SBD, general, investment), and sample combined marginal rates. Includes when to expect the next budget updates and links to official sources.
This content is for information and education only. It explains general concepts that may apply to incorporated business owners, but it is not personalized tax, legal, or investment advice.
Tax Considerations:
Tax rules are complex and subject to change
Strategies and benefits depend on your specific circumstances, province, and business structure
Always consult with a qualified CPA before implementing any tax strategy
Provincial variations in rates and rules may apply (Québec vs. Ontario differences exist)
Past tax treatment does not guarantee future treatment
Investment Risk Disclosure:
Investing involves risk, including the possible loss of principal
There is no guarantee that any investment strategy will achieve its objectives
Investment values fluctuate with market conditions, and you may receive less than you originally invested
Tax efficiency is one factor; risk, fees, and total returns all matter
Past performance does not guarantee future results
Insurance Illustrations:
Insurance illustrations show projected values based on assumptions that may not be guaranteed
Actual results will vary based on factors including interest rates, mortality experience, and expenses
Non-guaranteed elements (such as dividends or credited interest rates) are not promises of future performance
Review both guaranteed and non-guaranteed projections with your advisor before making decisions
Content Accuracy:
We strive to ensure information is accurate and current, but laws and regulations change frequently
Information reflects our understanding at the time of publication and may not reflect subsequent changes
If you believe any content contains an error, please contact us
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Mutual funds are offered through WhiteHaven Securities Inc.
Insurance products and certain other services are provided through iAssure Inc., an independent firm in the insurance of persons and in the group insurance of persons
These activities are neither the business nor the responsibility of WhiteHaven Securities Inc.
Professional Advice:
This article is not a substitute for professional advice from your CPA, lawyer, or financial advisor
Work with your professional team to understand how these concepts apply to your specific situation
For personalized advice, a formal engagement and suitability review are required
