Enter your taxable income and province to see your marginal rate — the combined federal and provincial tax on the next dollar you earn — alongside your average rate and total tax. The rate is measured by recomputing your tax $100 higher, so Ontario’s surtax bands and Quebec’s federal abatement show up in the number. Rates are current for the 2025 tax year.
Your income
How it works. The calculator computes your combined federal and provincial tax twice — at your income and at your income plus $100 — and the difference is your marginal rate. Measuring instead of looking up a bracket table means provincial surtaxes, the basic personal amounts and Quebec’s federal abatement are all baked into the figure, which is why it can sit between the published bracket rates.
Your marginal tax rate
0%
0% average rate — $0 total tax
Because the rate is measured, not looked up, it includes Ontario surtax and Quebec abatement effects at your exact income. It covers income tax only — CPP, EI and benefit clawbacks are separate.
An estimate is a starting point. Get your real number.
This calculator uses published rates. Your actual position depends on the credits, deductions and structure behind your numbers.
- A professional tax accountant reviews your figures, not a formula
- Fixed quote before any work starts
- You pay after you approve the filing
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Why Choose Us for Marginal Tax Rate Calculator
Your marginal rate is the tax on the next dollar you earn; your average rate is total tax divided by total income. They answer different questions. At $120,000 in Ontario the marginal rate is 43.4% but the average rate is about 23.8% — because the first slices of income were taxed at lower bracket rates (and the basic personal amount taxed the very first slice at nothing). The marginal rate is the one that prices decisions: whether overtime is worth it, what a raise really delivers, and what a deduction saves.
The marginal rate does not climb smoothly. It jumps at every federal and provincial bracket edge, and in Ontario it also jumps where the surtax bands begin — thresholds you will not find in any bracket table, which is why this calculator measures the rate rather than looking it up. The most practical use of the number: an RRSP contribution deducts from your top slice, so it saves tax at exactly this marginal rate. Run your contribution through the RRSP tax savings calculator to see the dollars.
What this calculator does not cover
Income tax is not the only thing that rises with income. Benefit clawbacks — OAS recovery tax, the Canada Child Benefit phase-out, GST credit reductions — take back money as income grows, so your true effective marginal rate in a clawback zone can be well above the tax-only figure shown here. Dividends and capital gains also carry their own rates: dividends through the gross-up and credit mechanism, capital gains through the 50% inclusion. Structuring income around those edges is tax planning work, and it pays for itself most at exactly the incomes where the marginal rate bites.
| Taxable income | Federal rate |
|---|---|
| Up to $57,375 | 14.5% |
| $57,375–$114,750 | 20.5% |
| $114,750–$177,882 | 26% |
| $177,882–$253,414 | 29% |
| Over $253,414 | 33% |
Rates reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. Federal and provincial rates change annually, and this tool is an estimate for planning rather than tax advice. Confirm current figures before relying on them for a filing.
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Rates and method reviewed by Udit Gupta
Ex Big 4 — Ernst & Young, Deloitte · International & cross-border tax specialist · CPA Canada (In-Depth Tax Program) · Chartered accountant, ICAI & MIA
Udit Gupta has over 15 years of experience helping corporations and business owners with corporate structuring, corporate tax filing, bookkeeping, payroll, GST/HST, cross-border tax and CRA representation. He is Big 4 trained, at Ernst & Young and Deloitte, and qualified as a chartered accountant in India and again in Malaysia. In 2014 he founded his accounting practice to serve entrepreneurs, startups and non-resident business owners across Canada. View full member bio.
The Institute of Chartered Accountants of India — member 521458 · Malaysian Institute of Accountants — member CA 44667 · Ex Big 4: Ernst & Young, Deloitte · CPA Canada (In-Depth Tax Program), completed 19 Dec 2023 · In-Depth GST/HST Part I, 12 Jul 2022 · Part II, 5 Jul 2023
Editorial policy. Every page is researched against primary sources — the Income Tax Act, CRA publications and CPA Canada guidance — and every rate or threshold is stated with the tax year it applies to.
Sources. CRA — Businesses · Income Tax Act (Justice Laws Website)