The 2026 federal budget dropped Canada's lowest income tax bracket from 15% to 14%, affecting roughly 22 million taxpayers starting January 1, 2026. This calculator shows your exact federal savings — annually, monthly, and per paycheque.
Employment + self-employment income, before deductions.
Enter your income to see exactly how much you'll save.
The savings cap fast — once you cross $57,375 of taxable income, you've collected the full per-person benefit. Here's what the cut means at common income points:
| Taxable income | 2025 federal tax (15%) | 2026 federal tax (14%) | Annual savings | Per paycheque |
|---|---|---|---|---|
| $25,000 | $1282 | $1197 | $85 | $3 |
| $40,000 | $3532 | $3297 | $235 | $9 |
| $58,523 | $6311 | $5890 | $421 | $16 |
| $75,000 | $6311 | $5890 | $421 | $16 |
| $100,000 | $6311 | $5890 | $421 | $16 |
| $150,000 | $6311 | $5890 | $421 | $16 |
| $250,000 | $6311 | $5890 | $421 | $16 |
Provincial tax brackets did not change as part of this federal cut. So the dollar difference shown above is your federal saving — provincial tax owed on the same income remains the same. Use our full Income Tax Calculator to see your combined federal + provincial bill for 2026.
If your 2026 income exceeds $71,300, the second-tier CPP contribution (CPP2) takes back 4% on income up to $81,200 — a maximum of $396 in payroll deductions. For high-earners, this partially neutralizes the rate-cut benefit. Compare both with our CPP2 Calculator.
Last reviewed: April 23, 2026