Tax System Overview
Canada operates a progressive tax system with **two layers of income tax**: Federal tax and Provincial/Territorial tax. The **Canada Revenue Agency (CRA)** administers the Federal tax and most Provincial taxes. Taxpayers pay the sum of both the applicable Federal and Provincial rates.
⚠️ **Official Tax Advice Disclaimer:** This guide provides estimates and educational information only. Tax rates vary significantly by province. Always consult the official **Canada Revenue Agency (CRA)** for your specific provincial rates.
2025 Federal Income Tax Brackets
These rates are applied to your **taxable income** across all provinces and territories. The calculator uses these brackets for Federal tax estimations.
| Tax Rate | Taxable Income Range (CAD) |
|---|
Example: 2025 Ontario Provincial Tax Brackets
To demonstrate the combined tax burden, here are the estimated 2025 brackets for **Ontario**, which are applied *in addition* to the Federal rates above. Note that your provincial rate depends entirely on your province of residence.
| Tax Rate (Ontario) | Taxable Income Range (CAD) |
|---|
Your total marginal rate is the sum of the applicable Federal and Provincial/Territorial rate.
Basic Personal Amount (BPA) & Consumption Tax (GST/HST)
- **Basic Personal Amount (BPA):** This is the most important tax credit. For 2025, the estimated maximum BPA is around $16,500. It is claimed as a non-refundable tax credit, which effectively makes this portion of your income tax tax-free.
- **Goods and Services Tax (GST) / Harmonized Sales Tax (HST):** This is Canada's consumption tax. The GST rate is **5%** federally. Many provinces combine this with a provincial sales tax to form the HST, which can range from **5% to 15%** depending on the province (e.g., Ontario's HST is 13%).
Official CRA Resources
For the most current and official information, especially regarding your specific provincial rates, please refer to the Government of Canada: