Marginal vs average rate
Your marginal rate is the tax on your next dollar – it decides how much an RRSP deduction saves or a raise costs. Your average rate is total tax divided by income, which is always lower. The combined rate includes surtaxes, the Ontario Health Premium and credit phase-outs, so it can differ from the published bracket rates.
| Federal 2026 taxable income | Rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 – $117,045 | 20.5% |
| $117,045 – $181,440 | 26% |
| $181,440 – $258,482 | 29% |
| Over $258,482 | 33% |
FAQ
What is the marginal tax rate on $90,000 in Ontario?
About 29.7% in 2026: 20.5% federal plus 9.15% Ontario (the Ontario Health Premium is already at its $750 cap).
Is the lowest federal rate 14% in 2026?
Yes. The lowest rate fell from 15% to 14% on July 1, 2025, so 2026 is the first full year at 14%.
Sources (checked Nov 6, 2026): CRA tax rates and income brackets 2026; T4127 Payroll Deductions Formulas (2026); provincial budgets 2026.