Tax Mastery

Brackets, credits, deductions, the CRA.

Module 1 of 10

How Canadian taxes actually work

What you'll learn

Progressive brackets — not a single rate
Federal + provincial tax stacked together
Marginal rate vs effective rate
T1 General and the calendar year rule

The Canadian number

15% / 20.5% / 26% / 29% / 33%

2024 federal brackets

Source: CRA

The story

The #1 misconception about Canadian taxes: 'I got a raise into the next bracket so now I'll take home less.' False. Only the dollars in the new bracket are taxed at the higher rate. A raise always means more take-home pay, period.

This week's action

Use the Tax Bracket Race tool on this site to see your effective and marginal rates.