Income tax calculator 2026 (BC and Alberta)
On $85,000 of employment income in 2026, you keep about $64,603 in BC and $64,034 in Alberta after income tax, CPP and EI. Your next dollar is taxed at 28.2% in BC and 30.5% in Alberta. Enter your own income below to see your federal tax, provincial tax, CPP, EI and take-home pay.
2026 ratesBC and AlbertaRuns in your browserSummary free, no sign-upSources checked 28 Oct 2026Estimate only
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Your employer's deductions should roughly cover your 2026 tax. Box 22 is estimated from your pay; enter it from your T4 for a real figure.
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Your 2026 tax statement, line by line
In the order of the T1 return, with the CRA line number beside each figure and a sentence on why it's there. It follows every change you make above.
| Line | Amount |
|---|
What this means
Planning notes
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Income tax in BC and Alberta, 2026: $50,000 to $150,000
Employment income only, for one person with the credits every employee gets. Federal tax, CPP and EI are the same in both provinces, so the whole gap is provincial tax. BC takes less from about $49,000 to $148,000 of salary because its lower and middle brackets are cheaper; above that, Alberta's rates (10% up to $154,259, then 12% to 15%) are lower than BC's, which reach 20.5%. Read how the two provinces compare.
| Salary | Income tax, BC | Income tax, Alberta | Take-home, BC | Take-home, Alberta | BC keeps |
|---|---|---|---|---|---|
| $50,000 | $5,844 | $5,877 | $40,574 | $40,541 | +$33 |
| $60,000 | $7,906 | $7,970 | $47,755 | $47,691 | +$64 |
| $70,000 | $10,572 | $10,813 | $54,348 | $54,107 | +$241 |
| $80,000 | $13,274 | $13,733 | $61,157 | $60,698 | +$459 |
| $90,000 | $16,037 | $16,722 | $68,193 | $67,509 | +$684 |
| $100,000 | $18,857 | $19,772 | $75,373 | $74,459 | +$914 |
| $110,000 | $21,905 | $22,822 | $82,325 | $81,409 | +$916 |
| $120,000 | $25,163 | $25,973 | $89,067 | $88,258 | +$809 |
| $130,000 | $28,992 | $29,573 | $95,238 | $94,658 | +$580 |
| $140,000 | $32,821 | $33,173 | $101,409 | $101,058 | +$351 |
| $150,000 | $36,854 | $36,773 | $107,377 | $107,458 | −$81 |
Income tax is federal plus provincial. Take-home is after income tax, CPP, CPP2 and EI. "BC keeps" is how much more a BC resident takes home on the same salary (a minus sign means Alberta keeps more). Worked out with the same 2026 engine as the calculator, figures checked 28 Oct 2026. Your own salary's row is marked once you enter it above.
Key figures for 2026
The amounts the calculator uses for the 2026 tax year (returns filed in 2027). Credits are worth 14% of the amount federally, 5.6% in BC and 8% in Alberta.
| Figure | Federal | BC | Alberta | Source, checked |
|---|---|---|---|---|
| Lowest tax rate | 14% to $58,523 | 5.6% to $50,363 | 8% to $61,200 | CRA T4032 2026, gov.bc.ca, alberta.ca; 28 Oct 2026 |
| Basic personal amount | $16,452falls to $14,829 from $181,440 to $258,482 of net income | $13,216 | $22,769 | CRA T4032-BC and T4032-AB 2026; 28 Oct 2026 |
| Spouse or common-law partner amount | Up to $16,452, less the partner's net income | Up to $11,317; $12,449 less the partner's net income | Up to $22,769, less the partner's net income | CRA TD1, TD1BC, TD1AB 2026; gov.bc.ca; 28 Oct 2026 |
| Age amount (65 or older) | $9,208, less 15% of net income over $46,432 | $5,927, less 15% over $44,119 | $6,345, less 15% over $47,234 | CRA TD1 worksheets 2026; gov.bc.ca; 28 Oct 2026 |
| Pension income amount | Up to $2,000 | Up to $1,000 | Up to $1,753 | CRA TD1, TD1BC, TD1AB 2026; 28 Oct 2026 |
| Canada employment amount | $1,501 | None | None | CRA T4032 2026; 28 Oct 2026 |
| Child care expenses (deduction) | $8,000 per child under 7, $5,000 per child aged 7 to 16, up to two-thirds of earned income | Same deduction | Same deduction | CRA Income Tax Folio S1-F3-C1; 28 Oct 2026 |
| CPP and CPP2 (employee) | 5.95% from $3,500 to $74,600; 4% from $74,600 to $85,000 | Same | Same | CRA T4032 2026; 28 Oct 2026 |
| EI (employee) | 1.63% up to $68,900 (max $1,123.07) | Same | Same | CRA T4032 2026; 28 Oct 2026 |
How it's calculated
- Total income. Employment, self-employment, interest and other income, eligible pension income and rental income (rents minus expenses) are added up. Dividends are grossed up by 38% (eligible) or 15% (non-eligible). A rental loss reduces your other income.
- Deductions. Your RRSP deduction, union and professional dues, employment expenses, child care expenses, any pension split to your partner, the enhanced part of CPP and CPP2, and (if self-employed) the employer half of your CPP come off. The result is your net income, which is also your taxable income here.
- Tax by bracket. Federal and provincial rates apply to each slice of taxable income.
- Credits. Non-refundable credits come off at the lowest rate (14% federal, 5.6% BC, 8% Alberta): the basic personal amount, the Canada employment amount (federal only), base CPP, EI, the age amount if you are 65 or older (reduced by 15% of net income over the threshold), the pension income amount, the spouse or common-law partner amount and amounts transferred from your partner. Then the dividend tax credits and, in BC, the tax reduction for lower incomes. Tax can't go below zero.
- Couples. In couple mode, eligible pension income can be split (up to 50%). Child care goes to the partner with the lower net income, within two-thirds of their earned income. The partner with the higher net income claims the spouse amount, worked out from the other's net income. Any age or pension amount a partner can't use moves to the other.
- CPP and EI. Employees pay 5.95% CPP, 4% CPP2 and 1.63% EI. Self-employed people pay both halves of CPP and no EI. Pension, rental, interest and dividends have no CPP or EI.
| 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% |
| Amount | Credit rate | |
|---|---|---|
| Federal basic personal amount | $16,452 falls to $14,829 between $181,440 and $258,482 of net income | 14% |
| Canada employment amount (federal) | $1,501 | 14% |
| BC basic personal amount | $13,216 | 5.6% |
| BC tax reduction | $690 less 3.56% of net income over $25,570 | – |
| Alberta basic personal amount | $22,769 | 8% |
| Taxable income | Rate |
|---|---|
| Up to $50,363 | 5.6% |
| $50,363 to $100,728 | 7.7% |
| $100,728 to $115,648 | 10.5% |
| $115,648 to $140,430 | 12.29% |
| $140,430 to $190,405 | 14.7% |
| $190,405 to $265,545 | 16.8% |
| Over $265,545 | 20.5% |
| 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% |
| Federal | BC | Alberta | |
|---|---|---|---|
| Age amount (65 or older) | $9,208 less 15% of net income over $46,432 | $5,927 less 15% over $44,119 | $6,345 less 15% over $47,234 |
| Pension income amount | up to $2,000 | up to $1,000 | up to $1,753 |
| Spouse or common-law partner amount | up to $16,452 less the partner’s net income | up to $11,317 $12,449 less the partner’s net income | up to $22,769 less the partner’s net income |
| Child care expenses (deduction) | $8,000 per child under 7, $5,000 aged 7 to 16 up to two-thirds of earned income | Same deduction | Same deduction |
Credits are worked out at 14% federal, 5.6% BC and 8% Alberta.
| CPP rate (employee, employer pays the same) | 5.95% of earnings from $3,500 to $74,600 |
| CPP2 rate (employee, employer pays the same) | 4% of earnings from $74,600 to $85,000 |
| Maximum CPP + CPP2 (employee) | $4,646.45 |
| Self-employed CPP | Both shares: 11.9% and 8% |
| EI rate (employee) | 1.63% up to $68,900 (max $1,123.07) |
| EI employer | 1.4 × the employee premium |
| Eligible | Non-eligible | |
|---|---|---|
| Gross-up | 38% | 15% |
| Federal credit | 15.0198% | 9.0301% |
| BC credit | 12% | 1.96% |
| Alberta credit | 8.12% | 2.18% |
Credits are a percentage of the grossed-up (taxable) dividend.
Eligible dividends usually come from public companies or corporate income taxed at the general rate. Non-eligible dividends usually come from a small business corporation's income taxed at the small business rate.
Three worked examples for 2026
Example 1: one person, $85,000 of salary in BC and in Alberta
An employee earns $85,000 in 2026, with no other income and no RRSP deduction. CPP is 5.95% of earnings between $3,500 and $74,600 ($4,230.45) plus CPP2 of 4% between $74,600 and $85,000 ($416). EI is 1.63% of the first $68,900 ($1,123.07). The enhanced part of CPP ($1,127) is deducted from income, so taxable income is $83,873.
Federal tax is 14% of the first $58,523 and 20.5% of the rest ($13,390), less credits of 14% on the basic personal amount, the Canada employment amount, base CPP and EI ($3,163). That leaves $10,227 in both provinces. BC tax is $5,401 before credits of $1,000; Alberta tax is $7,163 before credits of $2,193.
| Line | BC | Alberta |
|---|---|---|
| Federal income tax | $10,227 | $10,227 |
| Provincial income tax | $4,401 | $4,970 |
| CPP and CPP2 | $4,646 | $4,646 |
| EI | $1,123 | $1,123 |
| Total tax, CPP and EI | $20,397 | $20,966 |
| Take-home pay | $64,603 | $64,034 |
| Average tax rate (income tax only) | 17.2% | 17.9% |
| Marginal tax rate | 28.2% | 30.5% |
The marginal rate is 20.5% federal plus 7.7% in BC (28.2%), or plus 10% in Alberta (30.5%). That is also roughly what each $1,000 of RRSP deduction would save at this income; try the RRSP tax savings calculator to check.
Example 2: a BC couple with a spouse amount
You earn $90,000 of salary in BC. Your partner has $6,000 of interest and no other income. After the enhanced CPP deduction ($1,127), your net income is $88,873. Your partner's net income is $6,000, so you claim the spouse or common-law partner amount: $10,452 federally ($16,452 less $6,000) and $6,449 in BC ($12,449 less $6,000).
Your federal tax is $14,415 before credits. Your credits are 14% of $33,048 (basic personal $16,452, Canada employment $1,501, base CPP $3,519, EI $1,123 and the spouse amount $10,452), or $4,627, leaving $9,788. (Figures are rounded to the dollar, so the parts may not add up exactly.) Your BC tax is $5,786 before credits of 5.6% of $24,308 ($1,361), leaving $4,424. Your partner's $6,000 is below every basic personal amount, so they pay no income tax.
| Line | You | Your partner | Household |
|---|---|---|---|
| Net income | $88,873 | $6,000 | $94,873 |
| Spouse amount claimed (federal / BC) | $10,452 / $6,449 | – | – |
| Federal income tax | $9,788 | $0 | $9,788 |
| BC income tax | $4,424 | $0 | $4,424 |
| CPP and CPP2 | $4,646 | $0 | $4,646 |
| EI | $1,123 | $0 | $1,123 |
| Total tax, CPP and EI | $19,982 | $0 | $19,982 |
| After-tax income | $70,018 | $6,000 | $76,018 |
Without the spouse amount, your income tax would be $16,037 instead of $14,213, so the claim is worth about $1,824 (14% of $10,452 plus 5.6% of $6,449). Each extra dollar your partner earns, up to $12,449, costs about 19.6 cents in tax, because it shrinks your spouse amount in both places.
Example 3: two jobs in Alberta, with CPP and EI overpaid
You work two jobs in Alberta: $52,000 at one and $38,000 at the other, $90,000 in all. Each employer deducts CPP and EI as if it were your only job. Box 16 shows $2,885.75 and $2,052.75 ($4,938.50), box 16A is empty on both, and box 18 shows $847.60 and $619.40 ($1,467.00). On $90,000 the 2026 amounts are $4,646.45 of CPP and CPP2 and $1,123.07 of EI, so $292.05 of CPP and $343.93 of EI come back.
Income tax on $90,000 is $11,251.60 federal and $5,470.38 Alberta, $16,721.98. Box 22 shows $6,284 from the first job and $7,850 from the second, where you told the employer on Form TD1 that you have another job: $14,134. The balance owing is $16,721.98 less $14,134 less the two overpayments: $1,952, due April 30, 2027.
| Line | Amount |
|---|---|
| Federal income tax | $11,251.60 |
| Alberta income tax | $5,470.38 |
| Income tax | $16,721.98 |
| Income tax deducted, box 22 (both T4s) | −$14,134.00 |
| CPP overpaid ($4,938.50 − $4,646.45) | −$292.05 |
| EI overpaid ($1,467.00 − $1,123.07) | −$343.93 |
| Balance owing | $1,952.00 |
Net tax owing ($16,721.98 less $14,134) is $2,588, under $3,000, so instalments aren't needed on these numbers. If the second employer had also given you the basic personal amount, much less tax would have come off and the balance would be larger.
What counts, and what doesn't
The four deductions people most often get wrong. Keep the receipts and forms: CRA can ask for them.
Employment expenses (line 22900)
Most employees can't claim any. When your contract made you pay costs to earn your pay, you claim them on Form T777. Most need Form T2200 signed by your employer; you keep it with your records.
Counts
- Car costs when you normally had to work away from your employer's place of business and pay them yourself
- Home office costs, if you meet the conditions
- Legal fees to collect pay owed to you (no T2200 needed)
Doesn't count
- Driving between home and work
- Most tools and clothing, and costs you were paid back for or got a tax-free allowance for
Union and professional dues (line 21200)
Box 44 of your T4 shows union dues taken off your pay. Add professional fees you paid yourself, from your receipts.
Counts
- Annual union dues and public-service association dues
- Professional board dues required by provincial law, such as a nursing college
- Professional or malpractice insurance needed to keep a status recognized by law
Doesn't count
- Initiation fees, licences and special assessments
- Pension plan charges, even when the receipt calls them dues
Child care (line 21400)
Up to $8,000 for each child under 7 and $5,000 for each child aged 7 to 16, and no more than two-thirds of earned income. Usually the partner with the lower net income claims it.
Counts
- Daycare centres, nursery schools and caregivers
- Day camps and day sports schools whose main purpose is caring for children
- The child care part of a school's fees
Doesn't count
- Tuition, lessons and clubs, medical care, clothing and transport
- Paying the child's parent, or a relative under 18; costs paid back or subsidized
Rental expenses (Form T776)
Renting part of your home? Deduct the rented share of costs for the whole home, and costs for the rented part in full. The rental income calculator splits shared costs and personal use.
Counts
- Mortgage interest, property tax, insurance and utilities you pay (rented share)
- Repairs that restore, advertising and management fees
Doesn't count
- Mortgage principal, the price of the property and improvements that last (claimed over time as CCA)
- Your own labour, and the part of the home you live in
Who this is for and what it leaves out
Who this is for
- Employees, self-employed people and small landlords in BC or Alberta who want a 2026 estimate before filing in 2027.
- Couples who want to see the spouse amount, who should claim child care and what moves between them.
- People 65 or older with pension income, to see the age and pension income amounts and pension splitting.
What it leaves out
- Tuition, medical, donations, disability, caregiver, eligible dependant, moving and other credits and deductions.
- Rental details: capital cost allowance, personal-use share and loss limits. Net rent is simply added to or taken from your income.
- Child care: the $11,000 limit for a child who qualifies for the disability tax credit, and the cases where the higher-income partner claims.
- Pension: it assumes the pension you enter qualifies for the pension income amount, and that split pension qualifies for your partner too.
- CPP for the months you turned 18 or 70, received a CPP disability pension or stopped contributing (Form CPT30), and T4 boxes 24 or 26 that differ from box 14.
- How the tax deducted on split pension is shared between you (Form T1032): the total for both of you is shown.
- Couples living in different provinces or together for only part of the year, and the extra amounts for an infirm partner.
- The Alberta supplemental tax credit and the federal top-up tax credit (the result says when they may apply), capital gains, minimum tax, OAS recovery tax, refundable credits and benefits, and other provinces.
Sources, checked 28 Oct 2026
- CRA: T4032 payroll tables for BC, 2026 (July edition)
- CRA: T4032 payroll tables for Alberta, 2026
- CRA: TD1, TD1BC and TD1AB 2026 forms and worksheets (age, pension and spouse amounts)
- CRA: 2026 tax rates and income brackets
- CRA: Income Tax Folio S1-F3-C1, child care expense deduction
- CRA: line 21400, who claims child care expenses
- CRA: line 21200, union and professional dues
- CRA: line 22900, employment expenses
- CRA: line 32600, amounts transferred from your spouse or partner
- CRA: pension income splitting
- CRA: CPP contribution rates and maximums
- CRA: EI premium rates and maximums
- B.C.: personal income tax rates
- B.C.: basic tax credits and tax reduction (updated 20 Apr 2026)
- Alberta: personal income tax
- CRA: line 44800, CPP overpayment
- CRA: Schedule 8, CPP contributions and overpayment (2025 form, PDF)
- CRA: line 30800, CPP through employment (more than one employer)
- CRA: line 45000, EI overpayment
- CRA: line 31200, EI premiums ($2,000 rule)
- CRA: Form T2204, employee overpayment of EI premiums (2025, PDF)
- CRA: T4 slip, what each box means
- CRA: T4A slip, box 022 income tax deducted
- CRA: T5 slip, dividend boxes 10, 11, 24 and 25
- CRA: Federal Worksheet, dividend gross-up and tax credit rates (2025, PDF)
- CRA: Worksheet AB428, Alberta dividend tax credit (2025, PDF)
- CRA: required tax instalments, who has to pay
- CRA: important dates for individuals
- CRA: RRSP deadlines (page dated 29 Jan 2026, still showing the 2025-year date)
- CRA: how long to keep records (six years)
- CRA: T4 and T4A slips due by the last day of February
- CRA: line 21400, child care expenses you can claim
- CRA: Guide T4036, rental income
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Income tax in 2026, answered
How accurate is this income tax calculator?
It uses the 2026 federal, BC and Alberta tax brackets, credit amounts, CPP and EI figures published by the Canada Revenue Agency and the two provinces, checked on 28 Oct 2026. It claims the basic personal, Canada employment, age, pension income and spouse or common-law partner amounts, CPP, EI, the dividend tax credits and the BC tax reduction, plus the common deductions on the form. Tuition, medical, donations and some other credits are left out, so treat the result as an estimate.
What is the difference between my average and marginal tax rate?
Your average tax rate is your total income tax divided by your income. Your marginal tax rate is the tax on your next dollar of income. Canada taxes income in brackets, so only the income above each threshold is taxed at the higher rate. Moving into a higher bracket never makes you worse off overall.
Why is the lowest federal tax rate 14% in 2026?
The federal government cut the lowest rate from 15% to 14% from July 1, 2025. Because the cut came halfway through the year, the rate for 2025 works out to 14.5%. 2026 is the first full year at 14%, on taxable income up to $58,523. Non-refundable credits such as the basic personal amount are also worked out at 14%.
Is income tax lower in BC or Alberta in 2026?
It depends on your income. Federal tax is the same in both provinces. On employment income between about $49,000 and $148,000, BC provincial tax is lower in 2026, for example about $4,401 in BC and $4,970 in Alberta on $85,000. Above about $150,000, Alberta is lower because its top rate is 15% and BC's reaches 20.5%. Below about $49,000 the two are within a few dollars.
How much is the spouse or common-law partner amount for 2026?
Federally it is up to $16,452, less your partner's net income, so it is gone once their net income reaches $16,452. In BC it is up to $11,317, reduced once your partner's net income passes $1,132 and gone at $12,449. In Alberta it is up to $22,769, less your partner's net income. Usually the partner with the higher income claims it. Couple mode works it out for you.
Who claims child care expenses, me or my partner?
Usually the partner with the lower net income claims them, even if the other partner paid. The deduction is limited to $8,000 for each child under 7 at the end of the year, $5,000 for each child aged 7 to 16 at the end of the year (a child who turns 16 during the year still counts), and two-thirds of the claiming partner's earned income. The higher-income partner can claim only in a few situations, such as when the other partner was a student; this calculator does not cover those.
Can my partner's unused age and pension amounts be transferred to me?
Yes. If your partner's income is too low to use all of their age amount or pension income amount, the unused part can be transferred to you on Schedule 2, federally and on your provincial return. Couple mode does this for you. A couple can also split eligible pension income, moving up to 50% of it to the other partner; tick the pension splitting box to see the split that gives the lowest total tax.
Is the information I type saved or sent anywhere?
Only if you ask for the full breakdown. The calculator works in your browser, and the summary (refund or balance owing, total tax, average and marginal rate, take-home pay) needs nothing from you. If you add your name and email to open the full breakdown, we save them with the numbers you entered and the results, in our database in Canada, so our team can reply; the privacy policy says how long we keep them and how to ask us to delete them. Never type a SIN or account number.
Will I get a tax refund or owe tax for 2026?
It depends on how much tax was taken off during the year. Your refund or balance owing is your 2026 income tax, plus any CPP on self-employment, minus the income tax deducted on your slips (T4 box 22, T4A box 022), the instalments you paid and any CPP or EI overpaid. Income with little or no tax taken off, such as rent, dividends or a second job, usually means a balance owing, due April 30, 2027.
Why did I overpay CPP or EI with two jobs?
Each employer deducts CPP and EI as if it were your only job, up to its own maximums. If your combined pay is over $74,600 for CPP or $68,900 for EI, the total deducted can be more than the 2026 amounts on your combined pay. CRA works out the difference when you file and refunds it or uses it to lower what you owe. Below those amounts, two jobs can leave CPP slightly short, which you don't have to make up.