Key 2026 figures at a glance
- Lowest rates: 14% federal, 5.60% BC, 8% Alberta. Basic personal amounts: $16,452 federal, $13,216 BC, $22,769 Alberta.
- CPP: 5.95% up to $74,600 (max $4,230.45) plus CPP2 of 4% to $85,000 (max $416). EI: 1.63% up to $68,900 (max $1,123.07).
- RRSP limit $33,810, deadline 1 March 2027. TFSA $7,000. FHSA $8,000 of new room a year, unused room carries forward (up to $8,000), $40,000 lifetime.
- Returns due 30 April 2027; self-employed file by 15 June 2027, pay by 30 April. Most slips by 1 March 2027; trust and some other slips can arrive later.
- Small business corporate rate 11% in both provinces on qualifying active business income within the small-business limit, up to $500,000 (associated companies and other reductions can lower it); general rate 27% BC, 23% Alberta.
- GST 5%; register once taxable sales pass $30,000. BC PST 7%; Alberta has no PST. Half of a capital gain is taxable; lifetime exemption $1,275,000.
Figures are for the 2026 tax year, which you report on the return you file in 2027. Each one was read on the CRA, gov.bc.ca or alberta.ca page listed in the Sources on 28 Oct 2026, and matches the figures our free calculators use.
Federal, BC and Alberta tax brackets for 2026
Canada taxes income in layers: each slice of taxable income is taxed at its own rate, and you pay federal tax plus the tax of the province you lived in on 31 December 2026. Federal thresholds rose 2.0% for 2026, BC's 2.2% and Alberta's 2.0%. BC's lowest rate went up from 5.06% to 5.60% in Budget 2026, and BC has paused indexing its brackets for 2027 to 2030.
| Taxable income | Rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
| Taxable income | Rate |
|---|---|
| Up to $50,363 | 5.60% |
| $50,363 to $100,728 | 7.70% |
| $100,728 to $115,648 | 10.50% |
| $115,648 to $140,430 | 12.29% |
| $140,430 to $190,405 | 14.70% |
| $190,405 to $265,545 | 16.80% |
| Over $265,545 | 20.50% |
| Taxable income | Rate |
|---|---|
| Up to $61,200 | 8% |
| $61,200 to $154,259 | 10% |
| $154,259 to $185,111 | 12% |
| $185,111 to $246,813 | 13% |
| $246,813 to $370,220 | 14% |
| Over $370,220 | 15% |
See also: Income tax calculator 2026, which works out federal and provincial tax, CPP, EI and your refund or balance line by line.
Basic personal amounts and the lowest-rate credits
Many common non-refundable credits, including the basic personal amount, use the lowest rate: the amount times the lowest tax rate, so the basic personal amount means you pay no tax on roughly that much income. Some, such as charitable donations, are worked out differently. The federal amount is reduced for higher incomes; the BC and Alberta amounts are not.
| Credit | Amount | Credit rate |
|---|---|---|
| Federal basic personal amount | $16,452, falling to $14,829 as net income rises from $181,440 to $258,482 | 14% |
| Canada employment amount (federal) | Up to $1,501 of employment income | 14% |
| BC basic personal amount | $13,216 | 5.60% |
| BC tax reduction | Up to $690 off BC tax, reduced by 3.56% of net income over $25,570 (nil at $44,952) | Credit against tax |
| Alberta basic personal amount | $22,769 | 8% |
Other 2026 amounts (age, pension, spouse, child care, medical, disability) are in the "2026 rates used" panel on the income tax calculator. See also: Tax credits people miss.
CPP, CPP2 and EI for 2026
Employees and employers each pay CPP and EI on pay; self-employed people pay both CPP shares through their return and don't pay EI unless they opt in to special benefits. If you are self-employed, half of the base CPP contribution is deducted from income and the other half is a non-refundable credit; the enhanced contributions (the first additional CPP and all of CPP2) are deducted. For employees, the base part of the employee share is a credit and the enhanced part is a deduction.
| Item | 2026 figure |
|---|---|
| CPP maximum pensionable earnings (YMPE) | $74,600, with a $3,500 basic exemption |
| CPP rate | 5.95% employee and 5.95% employer; 11.90% self-employed |
| CPP maximum contribution | $4,230.45 each for employee and employer; $8,460.90 self-employed |
| CPP2 earnings band (YMPE to YAMPE) | $74,600 to $85,000 |
| CPP2 rate and maximum | 4% employee and 4% employer, maximum $416 each; 8% and $832 self-employed |
| EI maximum insurable earnings | $68,900 |
| EI premium rate and maximum | 1.63%, maximum $1,123.07 for employees; employers pay 1.4 times, maximum $1,572.30 |
See also: EI calculator 2026 for what EI pays, Self-employed tax calculator for CPP on business income, and the payroll guide for employers.
RRSP, TFSA and FHSA limits for 2026
Your RRSP deduction limit is on your 2025 notice of assessment and in CRA My Account. The deadline for contributions you deduct on your 2026 return is the 60th day of 2027. That is Monday, 1 March 2027; the CRA's dates page lists 2 March 2026 for the 2025 year (because 1 March 2026 was a Sunday), and we re-check it once the 2026-year date is listed.
| Plan | 2026 figure |
|---|---|
| RRSP dollar limit, 2026 | $33,810: new room is 18% of 2025 earned income up to this, less any pension adjustment |
| RRSP dollar limit, 2027 | $35,390, created by 2026 earned income |
| RRSP deadline for 2026 deductions | Monday, 1 March 2027 (the 60th day of 2027) |
| TFSA dollar limit, 2026 | $7,000; total room since 2009 is $109,000 for someone 18 or older and resident throughout |
| FHSA participation room | $8,000 of new room a year (contributions and RRSP transfers combined); unused room can carry forward to the next year, up to $8,000; $40,000 lifetime |
See also: RRSP tax savings calculator and RRSP vs TFSA.
Canada Child Benefit and the Canada Groceries and Essentials Benefit
Both are tax-free and paid from July 2026 to June 2027 based on your 2025 adjusted family net income, which is why filing every year matters. The GST/HST credit became the Canada Groceries and Essentials Benefit in July 2026, with the same rules and higher amounts. Finvo is not part of the government; the CRA decides eligibility and payments.
| Benefit | Maximum | Reduced from |
|---|---|---|
| Canada Child Benefit (CCB), child under 6 | $8,157 a year ($679.75 a month) | $38,237 of family net income; second threshold $82,847 |
| Canada Child Benefit (CCB), child 6 to 17 | $6,883 a year ($573.58 a month) | Same thresholds |
| Child Disability Benefit | $3,480 a year per eligible child | $82,847 |
| Canada Groceries and Essentials Benefit | Annual maximum, paid quarterly: $679 single, $890 married or common-law, plus $234 per child under 19 | $46,432 of family net income |
The BC family benefit and the Alberta Child and Family Benefit are added on top. See also: Canada Child Benefit calculator and Government benefits in BC and Alberta.
Key dates for 2026 returns
When a CRA deadline falls on a weekend or public holiday, it moves to the next business day. In 2027 the usual dates fall on weekdays, except the slip deadline.
| Date | What is due | Who |
|---|---|---|
| 1 Mar 2027 (Mon) | T4, T4A, T5 and most other slips given to you. The usual date is the last day of February; 28 February 2027 is a Sunday. T3, T5013 and NR4 slips can come at the end of March | Employers and payers |
| 1 Mar 2027 (Mon) | Last day for RRSP contributions deducted on the 2026 return (60th day of 2027) | Anyone with RRSP room |
| 16 Mar, 15 Jun, 15 Sep, 15 Dec 2026 | Quarterly income tax instalments for 2026, if the CRA asks for them: 16 March 2026 (15 March was a Sunday); the other dates are June 15, September 15 and December 15. The 2027 dates are March 15, June 15, September 15 and December 15. You may have to pay instalments if your net tax owing is more than $3,000 for the current year and for either of the two years before. Farmers and fishers have a separate rule: one payment, due 31 December | Self-employed, landlords, investors |
| 30 Apr 2027 (Fri) | File the 2026 return and pay any balance owing | Most individuals |
| 30 Apr 2027 (Fri) | Pay any balance owing, even if you file in June | Self-employed and their spouses or partners |
| 15 Jun 2027 (Tue) | File the 2026 return if you or your spouse or common-law partner had self-employment income; also the annual GST/HST return for a sole proprietor with a 31 December year-end (GST paid by 30 April) | Self-employed |
| 6 months after year-end | T2 corporate return (30 June 2027 for a 31 December 2026 year-end). The balance of corporate tax is due two months after year-end, or three for many small Canadian-controlled private corporations | Corporations |
See also: Tax preparation, the T1 return checklist and year-end tax planning.
Corporate tax rates for 2026
A Canadian-controlled private corporation pays the small business rate on qualifying active business income within the small-business limit, up to $500,000. Associated companies and other reductions can lower it. The general rate applies to active business income above the limit. The federal rate is 9% with the small business deduction and 15% otherwise; BC and Alberta add their own. The table covers active business income only: a CCPC's investment income (interest, rent, most capital gains) is taxed under separate rules, at a higher rate with part of the tax refundable when the corporation pays taxable dividends.
| Province | Within the small-business limit (up to $500,000) | Above that |
|---|---|---|
| British Columbia | 11% (9% federal + 2% BC) | 27% (15% federal + 12% BC) |
| Alberta | 11% (9% federal + 2% Alberta) | 23% (15% federal + 8% Alberta) |
See also: Salary vs dividend calculator, Corporate tax rates explained and Dividend vs salary.
GST/HST and PST basics
BC and Alberta both charge 5% GST rather than HST. BC adds a 7% provincial sales tax on most goods and some services; Alberta has no provincial sales tax. BC's plan to extend PST to accounting, engineering and other professional services from 1 October 2026 was paused in September 2026.
| Item | Rule |
|---|---|
| GST rate | 5% in BC and Alberta |
| Small supplier threshold | Register once taxable sales pass $30,000 in a single calendar quarter or over the last four calendar quarters. Rideshare drivers register from the first paid trip |
| BC PST | 7% general rate (8% on short-term accommodation). PST on accounting and other professional services is paused |
| Alberta | No provincial sales tax |
See also: GST/HST and PST calculator, GST registration guide, BC PST on professional services: paused and PST registration in BC.
Capital gains in 2026
One-half of a capital gain is taxable: you add 50% of the gain, after costs, to your income. The increase to two-thirds proposed in 2024 was deferred to 2026 and then cancelled; the CRA's "What's new for corporations" page (modified 12 June 2026) records it as cancelled, and its capital gains pages use the one-half rate. Your principal residence is usually exempt. Net capital losses generally offset taxable capital gains; special rules can allow them against other income around death.
| Item | 2026 figure |
|---|---|
| Inclusion rate | One-half (50%) of the gain is taxable |
| Lifetime capital gains exemption | $1,275,000 of gains on qualified small business corporation shares and qualified farm or fishing property (a deduction of up to $637,500); $1,250,000 for 2025 |
| Net capital losses | Carried back three years or forward indefinitely, against capital gains only |
See also: Capital gains tax guide and, for a rental you sell, the rental income calculator.
Which slips to expect
Most slips reach you by 1 March 2027; trust (T3) and some other slips can arrive later. Employees get a T4 from each employer; retirees a T4A(OAS), T4A(P), T4A or T4RIF; investors a T5, T3 or T5008; students a T2202; people on EI a T4E. Self-employed people often get no slip at all and report income from their own records. Every slip, box by box, is on our tax slips explained page.
How Finvo helps
We prepare personal, self-employed and corporate returns for people in BC and Alberta, using these figures and your records. Memberships are explained on the personal and business membership pages and on pricing; we confirm your price before any work starts.
This guide is general information, not tax advice for your situation. Every figure was read on the official page named in the Sources on 28 Oct 2026 and matches the shared 2026 tax engine behind our calculators. Rules have exceptions and can change; we re-check this page when the CRA publishes the 2026 forms in early 2027.