New 2026 Federal and Quebec Tax Brackets, and what they mean for you
Ottawa & Québec just dropped the 2026 tax brackets, so let’s talk about how much the tax man plans to take from us next year (spoiler alert: it’s less)
If you are a mom juggling daycare fees, grocery inflation, winter gear, and a toddler who eats half a banana then yeets the rest onto the floor… take a breath. For once, there is actual good news: 2026 might cost you slightly less in taxes.
Yes, I said less.
Here is the deal
Canada uses a progressive tax system, which just means you only pay the higher rates on the slice of income that lands in each bracket. Every year, Ottawa and Quebec adjust tax brackets for inflation. And when those brackets go up but your income stays the same, more of what you earn stays in lower tax zones.
For 2026, those brackets moved up a bit — and with inflation trending down lately, this could be a real win. It is basically the government saying: “Fine, life is expensive, here is a tiny break.”
About the Basic Personal Amount (BPA)
The BPA is the amount of money you’re allowed to earn each year before the government starts charging you any federal income tax.
Federal tax brackets for 2026
Ottawa indexed the tax brackets by 2.0%. And the biggest update: the lowest federal rate is officially 14% for all of 2026 (down from 15% before July 1, 2025), meaning the lowest bracket is taxed 1% less than last year.
Here is how your federal income will get taxed:
14% on the first $58,523
20.5% on income from $58,523 to $117,045
26% on income from $117,045 to $181,440
29% on income from $181,440 to $258,482
33% on income above $258,482
Federal BPA (basic personal amount)
For 2026, the BPA is up to $16,452. It works like this:
If you earn $181,440 or less → you get the full $16,452
If you earn $258,482 or more → your BPA drops to $14,829
If you fall in between → it decreases gradually
If your taxable income is below the BPA, you pay no federal income tax.
Quebec’s 2026 tax brackets
Quebec indexed everything by 2.05% for 2026. Rates stay the same, brackets just move up.
Here is how much of your income gets taxed at each level:
14% on the first $54,345
19% on income from $54,345 to $108,680
24% on income from $108,680 to $132,245
25.75% on income above $132,245
For comparison, the 2025 thresholds were lower ($53,255, $106,495, and $129,590). Translation: more breathing room.
Quebec’s basic personal amount (BPA)
The BPA increases from $18,571 to $18,952. You pay zero provincial tax on that first $18,952 of income. So if you earn less than that: no provincial tax at all.
Quebec RRQ + RQAP deductions are dropping
Yes, your payroll deductions are also going down…a little bit… starting Jan 1, 2026:
RRQ (Régime des rentes du Québec)
Employee: 5.4% → 5.3%
Self-employed: 10.8% → 10.6%
RQAP (Régime québecois d’assurance parentale)
Employee: 0.430% (no change from current projection)
Self-employed: 0.764%
Estimated savings:
→ Up to $137 per year for employees
→ Up to $259 for self-employed (moms who are side hustlers, freelancers, small-biz queens… this is for you)
How this affects you
Because every dollar you do not hand over to the tax man is a dollar you can put toward:
RESP contributions
Groceries (that disappear in 24 hours)
RRSPs
Your TFSA
A latte you actually drink while it is hot
Higher brackets + higher BPAs + lower payroll deductions = more money in your pocket.
Is it life-changing? No. But will you feel it? Probably a little. And with the way expenses multiply, “a little” matters a lot.
One last thing
These changes apply to 2026 income. The old brackets still apply to your 2025 taxes.
For more in-depth information, visit the CRA website or Revenu Québec Website.
If you want exact numbers for your situation, you can find links to income tax calculators on my Resources page.
