Canada Income Tax Rates 2017 and 2018: Individual and Corporate Tax Guide
A reference guide to Canadian federal income tax for calendar years 2017 and 2018, with a separate overview of the 2026 tax framework. Federal and provincial or territorial taxes are calculated separately; rates shown in historical tables must not be used for current returns.
Canada income tax in 2026: what has changed?
For 2026, the federal personal income tax system retains five progressive brackets with marginal rates of 14%, 20.5%, 26%, 29% and 33%. The lowest federal rate was reduced from 15% to 14% effective July 1, 2025, resulting in a blended 14.5% rate for 2025. The 2026 first-bracket rate is 14%. Bracket thresholds are indexed annually; check the Canada Revenue Agency (CRA) table for the exact 2026 dollar limits.
Use the CRA's current and previous federal income tax rates and provincial and territorial tax information before filing. The federal basic personal amount and most credits also change by year.
2018 federal personal income tax brackets
These are the historical federal marginal rates for ordinary taxable income. The original page also supplied illustrative federal marginal rates for capital gains and Canadian dividends. Dividend figures depend on gross-up and tax-credit assumptions and are not the taxpayer's complete combined tax rate.
| Annual Taxable | Other Income | Capital Gains | Canadian Dividends | |
| Eligible | Non Eligible | |||
| Upto $46,605 | 15% | 7.50% | -0.03% | 5.77% |
| $46,606 to $93,208 | 20.5% | 10.25% | 7.56% | 12.15% |
| $93,209 to $144,489 | 26% | 13% | 15.15% | 18.53% |
| $144,490 to $205,842 | 29% | 14.5% | 19.29% | 22.01% |
| $205,843 and above | 33% | 16.5% | 24.81% | 26.65% |
2018 federal basic personal amount: CAD 11,809. This is a non-refundable tax credit base, not a direct deduction from taxable income. The applicable federal credit rate was 15%.
| Personal Amount | Tax Rate |
| $11,809 | 15% |
2017 federal personal income tax brackets
The 2017 federal thresholds were lower because the brackets are indexed. Two discontinuities in the original income ranges have been corrected below.
| Annual Taxable | Other Income | Capital Gains | Canadian Dividends | |
| Eligible | Non Eligible | |||
| Upto $45,916 | 15% | 7.50% | -0.03% | 5.24% |
| $45,917 to $91,831 | 20.5% | 10.25% | 7.56% | 11.67% |
| $91,832 to $142,353 | 26% | 13% | 15.15% | 18.11% |
| $142,354 to $202,800 | 29% | 14.5% | 19.29% | 21.62% |
| $202,801 and above | 33% | 16.5% | 24.81% | 26.3% |
2017 federal basic personal amount: CAD 11,635, generally multiplied by the 15% lowest federal rate for the non-refundable federal credit.
| Personal Amount | Tax Rate |
| $11,635 | 15% |
Capital gains and Canadian dividends
Capital gains: For the 2017 and 2018 historical tables, the general inclusion rate was 50%, so the effective federal marginal rate on a capital gain was half the rate on ordinary taxable income. Exemptions, capital losses and special property rules may change the result. For current capital-gains inclusion rules, consult the CRA's capital gains guidance.
Canadian dividends: Eligible and non-eligible dividends generally receive different gross-up percentages and dividend tax credits. A negative illustrative federal marginal rate can arise in a low bracket because of credits; it does not mean a cash refund is automatically paid. See the CRA's dividend reporting guidance.
Canada corporate income tax rates: historical 2018 overview
Canadian corporations may owe both federal and provincial or territorial corporate income tax. A Canadian-controlled private corporation (CCPC) may qualify for the small business deduction on eligible active business income, subject to the business limit and other restrictions. The following table reproduces the original 2018 reference figures for federal and provincial components; they are not combined tax rates, and individual provincial rates or limits could change during the year.
| Active Business Income | Investment Income CCPC | |||
| General | Small Business (CCPC) | Business Limit | ||
| Federal | 15% | 10% | $500,000 | 38.7% |
| Alberta | 12% | 2% | $500,000 | 12% |
| BC | 12% | 2% | $500,000 | 12% |
| Manitoba | 12% | 2% | $450,000 | 12% |
| New Brunswick | 14% | 3.0% / 2.5% | $500,000 | 14% |
| Newfoundland and Labrador | 15% | 3% | $500,000 | 15% |
| Nova Scotia | 16% | 3% | $500,000 | 16% |
| Northwest Territories | 11.5% | 4% | $500,000 | 11.5% |
| Nunavut | 12% | 4% | $500,000 | 12% |
| Ontario | 11.5% | 3.5% | $500,000 | 11.5% |
| Prince Edward Island | 16% | 4.5% | $500,000 | 16% |
| Quebec | 11.7% | 8% | $500,000 | 11.7% |
| Saskatchewan | 12% | 2% | $600,000 | 12% |
| Yukon | 12% | 2% | $500,000 | 12% |
In 2018, the general federal corporate income tax rate after the federal abatement and general rate reduction was generally 15%. The federal small business rate was 10% in 2018 and reduced to 9% in 2019. A separate federal tax regime applies to personal services businesses. Corporate investment income and refundable tax accounts have distinct rules; the historical investment-income column above should not be treated as a complete current tax calculation.
2018 and 2019 federal small business changes
| Description | 2018 Rate | 2019 Rate |
| Small Business Tax Rate | 10% | 9% |
| Non Eligible Dividends Gross up | 16% | 15% |
| Non Eligible Dividend tax Credit | 10.0313% | 9.0301% |
The non-eligible dividend gross-up and dividend tax-credit figures in the historical source are expressed in the context of the 2018-19 federal changes. The effective tax treatment depends on the tax year and relevant credits.
Legal provisions and definitions
- Income Tax Act (Canada): the principal federal statute governing personal and corporate income taxation. See the consolidated Income Tax Act.
- Section 117: establishes the federal individual income tax rate schedule and progressive calculation framework.
- Section 118: provides the federal personal tax-credit framework, including the basic personal amount.
- Section 125: governs the federal small business deduction for qualifying Canadian-controlled private corporations.
- Section 123: addresses the basic federal corporate tax computation; federal abatements and reductions are dealt with in other provisions, including sections 124 and 123.4.
- Marginal rate: the rate applicable to the next dollar within a tax bracket, not a flat rate on all income.
- Taxable income: income remaining after allowable deductions and adjustments, as determined under the Act.
For 2026 corporate rates and qualification rules, consult the CRA's corporation tax rates and corporation income tax resources. Provincial legislation may impose additional tax.
Tax filing and residency
Canadian residents generally report worldwide income, while non-residents are taxed on specified Canadian-source income under the Income Tax Act and applicable tax treaties. Residence is a facts-and-circumstances test, not simply citizenship. See CRA residency guidance.
Individual returns are normally due April 30 following the calendar tax year; certain self-employed filers have a later filing deadline, but balances owing are generally due April 30. Corporate T2 returns are generally due six months after the end of a corporation's tax year, with tax payment deadlines potentially earlier. Check the CRA individual return guidance and corporation return guidance.
Last reviewed: October 23, 2026. Historical rates are provided for research and comparison; official CRA publications and the applicable legislation control.