What's the difference between marginal and effective rate?

Marginal rate is the bracket your NEXT dollar falls in. Effective rate is the AVERAGE — total tax ÷ total income. Effective is always lower than marginal because earlier dollars are taxed at lower brackets.

Will earning more bump me into a 'bad' bracket?

No. Brackets are progressive — only the income ABOVE the threshold is taxed at the higher rate. A $100 raise into the 26% bracket means $26 more tax on those $100, not on your entire salary.

Where do provincial taxes fit in?

This visualiser shows federal only. Combined federal + provincial marginal rates can reach 50%+ in high-tax provinces like Quebec, Ontario, and BC. See the Provincial Marginal Rate Visualiser for the provincial side, or use the Canadian Income Tax Calculator for combined.

Canadian Federal Marginal Tax Rate Visualiser

Finance· 33 tools

Free visualiser for the 2025 Canadian federal income tax brackets. Drag a slider or type an income to see exactly which bracket your last dollar falls in, what your effective (average) rate is, and how the tax on each bracket adds up. Useful for understanding why a raise into a higher bracket doesn't make you 'lose money' — only the marginal portion is taxed at the new rate.

Taxable income (CAD)

Federal BPA ($16,129) is automatically subtracted.

2025 Federal brackets · CRA-confirmed

Marginal rate = bracket your last dollar falls in · Effective rate = total tax ÷ income

Marginal

20.5%

Effective

11.9%

Federal tax

$8,913

Bracket-by-bracket breakdown

Rate	Bracket	Taxable in bracket	Tax
15%	$0 – $57,375	$57,375	$8,606
20.5%	$57,375 – $114,750	$1,496	$307
26%	$114,750 – $177,882	—	—
29%	$177,882 – $253,414	—	—
33%	$253,414 – and over	—	—

Disclaimer: For informational purposes only. This is not financial, tax, or legal advice — consult a licensed professional before making decisions.

Frequently Asked Questions

References

Federal Income Tax Rates — Canada Revenue Agency

Related Tools

Frequently Asked Questions

References and sources

Related Tools