2025 Canadian income tax brackets

min read

February 16, 2025

With more Canadians filing tax returns on their own, being tax-savvy is key. That starts with knowing the important dates and what tax bracket you fall in, which can go a long way to ensuring you plan ahead so you can pay on time.

We’ve gathered the updated tax brackets for 2025, along with an easy-to-understand overview of the Canadian tax system to help you prepare and plan for future tax filings.

2025 federal tax bracket rates and income thresholds

15.0% up to $57,375 of taxable income
20.5% between $57,375.01 and $114,750
26.0% between $114,750.01 and $177,882
29.0% between $177,882.01 up to $253,414
33.0% on any taxable income exceeding $253,414

2025 tax bracket rates (largest provinces)

Ontario

5.05% up to $52,886 of taxable income
9.15% between $52,886.01 and $105,775
11.16% between $105,775.01 and $150,000
12.16% between $150,000.01 and $220,000
13.16% on any taxable income exceeding $220,000

Quebec

14.00% up to $53,255 of taxable income
19.00% between $53,255.01 and $106,495
24.00% between $106,495.01 and $129,590
25.75% on any taxable income exceeding $129,590

British Columbia

5.06% up to $49,279 of taxable income
7.70% between $49,279.01 and $98,560
10.50% between $98,560.01 and $113,158
12.29% between $113,158.01 and $137,407
14.70% between $137,407.01 and $186,306
16.80% between $186,306.01 and $259,829
20.50% on any taxable income exceeding $259,829

For tax bracket rates for all other provinces and territories, please scroll down for the full list below.

The Upside^TM

Important dates to keep in mind

February 28, 2025: Extended deadline to make charitable donations that can be claimed for the 2024 tax year, to mitigate the impact of the Canada Post strike.
March 3, 2025 (since March 1 is a Saturday): Deadline to contribute to an RRSP, a Pool Registered Pension Plan (PRPP) or a Specified Pension Plan (SPP) to deduct against your 2024 income.
April 30, 2025: Deadline to file your return and pay your taxes.
June 16, 2025 (since June 15 is a Sunday): Extended deadline to file your return if you or your spouse or common-law partner is self-employed (note that payment must be made by April 30).
Most individuals who have to pay tax instalments are required to pay by these payment due dates: March 17 (since March 15 is a Saturday), June 16 (since June 15 is a Sunday), September 15 and December 15.

Know your sources of taxable income

Most people’s main source of taxable income is the paycheque they collect from their employer, but it’s not uncommon to have other income streams that could affect your tax filing. Other sources could include commissions, business and rental income, investment income (such as interest and dividends, as well as capital gains) and a variety of government benefits and pensions. These can change over time, so visit the Canada Revenue Agency (CRA) website for the most current list.

Know your eligibility for tax deductions and credits

If you’re doing your own taxes, the value of the various deductions and credits that may be available to you can’t be understated. Tax deductions lower your taxable income and reduce how much you owe. Registered Retirement Savings Plan (RRSP) contributions, self-employment expenses, home office expenses, moving expenses and child care expenses are just some of the many deductions you should look for. Tax credits, on the other hand, reduce the amount of tax that you owe. Examples of tax credits include the basic personal exemption, qualifying medical expenses, the charitable tax credit for qualifying donations and gifts, the tuition tax credit and the Home Buyers’ Amount (HBA).

These items just scratch the surface of the tax deductions and credits you may be able to claim.

How to calculate your income taxes: Know the difference between your average and marginal tax bracket

In Canada, the more you make, the more tax you may owe. But the math isn’t quite as simple as it may seem. Canada uses a progressive tax system, in which the marginal tax rate changes depending on your tax bracket. So, whether you earn $20,000 or $1 million, every dollar within that tax bracket is taxed at the same rate, less any deductions or tax credits.

As you climb through the different tax brackets, the portion of your income that falls within each one gets taxed at a higher rate. That’s different from the average tax rate, which compares your total tax bill to your total taxable income, regardless of how that income was earned.

Every year, the federal and provincial governments determine the income ranges and the applicable tax rates for those ranges (the “tax brackets”). These tax brackets are reset each year as they are adjusted to account for inflation. Don’t forget, both the federal and provincial governments come out with their own tax brackets, so a bit of math is involved to calculate your average and marginal tax rates.

Here’s an example of how the tax brackets might apply to someone who earns $65,000 in Ontario. For simplicity, we’ll assume no deductions or tax credits apply, other than the Ontario basic personal amount, as well as the federal basic personal amount, which in 2025 is applied equally to everyone earning under $177,882:

Income: $65,000	Tax rate by income	Tax
Federal tax:	$57,375 x 15%¹	$6,186.90
Federal tax:	$7,625 x 20.5%	$1,563.13
Provincial tax:	$52,886x 5.05%²	$2,027.02
Provincial tax:	$12,114 x 9.15%	$1,108.43
Total		$10,885.48
Average tax (total tax divided by total income)		16.75%

¹Assumes $65,000, less $57,375, the upper level of the first federal tax bracket. This figure also subtracts the federal basic personal amount tax credit, which for 2024 is $16,129.

²Assumes $65,000, less $52,886, the upper level of the first tax bracket in Ontario. This figure also subtracts the basic personal amount tax credit for Ontario, which for 2024 is $12,747.

We have taken out the guesswork: Fidelity has a tax calculator tool that helps you easily calculate your average tax rate, total taxable income and year-end balance (or refund) based on your total income and total deductions.

Estimate your year-end tax balance

Fidelity’s Tax Calculator

2025 tax bracket rates and income thresholds by province

Alberta

10% up to $151,234
12% between $151,234.01 and $181,481
13% between $181,481.01 and $241,974
14% between $241,974.01 and $362,961
15% on any taxable income exceeding $362,961

Manitoba

10.80% up to $47,564 of taxable income
12.75% between $47,564.01 and $101,200
17.40% on any taxable income exceeding $101,200

New Brunswick

9.4% up to $51,306 of taxable income
14.0% between $51,306.01 and $102,614
16.0% between $102,614.01 and $190,060
19.5% on any taxable income exceeding $190,060

Newfoundland and Labrador

8.7% up to $44,192 of taxable income
14.5% between $44,192.01 and $88,382
15.8% between $88,382.01 and $157,792
17.8% between $157,792.01 and $220,910
19.8% between $220,910.01 and $282,214
20.8% between $282,214.01 and $564,429
21.3% between $564,429.01 and $1,128,858
21.8% on any taxable income exceeding $1,128,858

Nova Scotia

8.79% up to $30,507 of taxable income
14.95% between $30,507.01 and $61,015
16.67% between $61,015.01 and $95,883
17.50% between $95,883 and $154,650.01
21.00% on any taxable income exceeding $154,650

Prince Edward Island

9.50% up to $33,328 of taxable income
13.47% between $33,328.01 and $64,656
16.60% between $64,656.01 and $105,000
17.62% between $105,000.01 and $140,000
19.00% on any taxable income exceeding $140,000

Saskatchewan

10.5% up to $53,463 of taxable income
12.5% between $53,463.01 and $152,750
14.5% on any taxable income exceeding $152,750

2025 tax bracket rates – Territories

Northwest Territories

5.90% up to $51,964 of taxable income
8.60% between $51,964.01 and $103,930
12.20% between $103,930.01 and $168,967
14.05% on any taxable income exceeding $168,967

Nunavut

4.0% up to $54,707 of taxable income
7.0% between $54,707.01 and $109,413
9.0% between $109,413.01 and $177,881
11.5% on the amount exceeding $177,881

Yukon

6.4% up to $57,375 of taxable income
9.0% between $57,375.01 and $114,750
10.9% between $114,750.01 and $177,882
12.8% between $177,882.01 and $500,000
15% on any taxable income exceeding $500,000

Canadian income tax summary

Taxes can be confusing, but we hope you’ve found this refresher useful. Few Canadians enjoy paying tax, but there are ways to lower your bill. One popular way to limit how much you send the CRA is to make regular contributions to your RRSP. Read here about RRSPs and how they work.

If you want to experiment with ways to lower your tax bill this year, you can also use our tax calculator, which illustrates your potential tax savings with varying RRSP contribution amounts. Tax planning is an important part of any financial plan. To ensure you’re optimizing your taxes, talk with your financial advisor to see if there are any other ways you can lower your income tax obligation that work with your overall financial plan.