The federal bottom rate is 14% in 2026, down from 15%. Because it applies to the first bracket only, the benefit rises with income up to the top of that bracket and then flattens completely.
What it is worth at each income
| Taxable income | Saving |
|---|---|
| $40,000 | ~$235 |
| $58,523 | ~$421 |
| $90,000 | ~$421 |
| $150,000 | ~$421 |
There is a second, smaller effect: non-refundable credits such as the basic personal amount are valued at the lowest rate, so a lower bottom rate slightly reduces what those credits are worth. The net figure above already accounts for it.
Across three provinces
Provincial rates were not cut, so the total depends on where you live. On $75,000 of employment income the combined average rate still varies by several points between Alberta, Ontario and Quebec — the federal change is identical in each, but the starting point is not.
Run it on your own numbersSalary and taxSee the full 2026 breakdown for your province.Why a raise still feels small
A $5,000 raise at a 43% combined marginal rate delivers about $2,850 in net pay — $237 a month. If the raise also pushes you past a benefit threshold, such as the second CCB reduction band, the effective rate on that raise can exceed 55%.
This is not an argument against raises. It is an argument for knowing your marginal rate before you plan around one.
Run it on your own numbersBudget plannerBuild a budget from take-home pay, not gross, with savings-rate targets.Figures are the published 2026 federal and provincial amounts at the time of writing. General information only, not financial, tax, or legal advice — see the methodology and disclaimer.