Tax Bracket Visualizer
See exactly how Canadian tax brackets work. Understand your marginal vs effective tax rate with interactive visualization.
MARGINAL TAX RATE
0%
Tax on your next dollar earned
EFFECTIVE TAX RATE
0%
Average tax on total income
Tax Breakdown
Federal Tax Brackets 2025
Provincial Tax Brackets (Ontario)
Understanding Tax Brackets in Canada
What is a Marginal Tax Rate?
Your marginal tax rate is the tax rate you pay on your next dollar of income. Canada uses a progressive tax system, meaning higher income is taxed at higher rates. For example, if you're in the 26% bracket, you pay 26% tax on each additional dollar you earn.
What is an Effective Tax Rate?
Your effective tax rate is your average tax rate - the total tax you pay divided by your total income. It's always lower than your marginal rate because lower portions of your income are taxed at lower rates.
2025 Federal Tax Brackets
- 15% on income up to $55,867
- 20.5% on income between $55,867 and $111,733
- 26% on income between $111,733 and $173,205
- 29% on income between $173,205 and $246,752
- 33% on income over $246,752
💡 Common Misconception
Moving into a higher tax bracket doesn't mean ALL your income is taxed at that rate - only the portion that falls within that bracket. You'll never take home less money by earning more!