Canada

This sample calculation applies to a calendar year ending 31 December 2026.

Assumptions

• Resident husband and wife living in Alberta; two children (under 18); one spouse earns all the income.
• Total remuneration of CAD 110,000.
• Capital gains of CAD 16,000.
• Foreign interest income of CAD 5,000, from which CAD 750 withholding has been deducted.
• Other interest income of CAD 6,000.
• All amounts are in Canadian dollars (CAD).

Tax computation

Notes

1. Assuming the capital gains are not in respect of qualified farm property, qualified fishing property, or shares of a small business corporation, no capital gains deduction is available.
2. In Alberta, the following rates are applied to taxable income in 2026.
   
   

   Taxable income (CAD)		Tax on first column (CAD)	Tax on excess (%)
   Over	Not over
   0	61,200	0	8
   61,200	154,259	4,896	10
   154,259	185,111	14,202	12
   185,111	246,813	17,904	13
   246,813	370,220	25,925	14
   370,220		43,202	15

3. Personal tax credits and miscellaneous tax credits are subtracted from the result to determine Alberta tax. The 2026 Alberta personal tax credit for the government pension plan and employment insurance plan contributions is equal to 8% (maximum credit is CAD 372) of the lesser of the base (non-enhanced) amounts payable and the required base premiums for the year.
4. The taxpayer does not have sufficient tax preference items to be liable for AMT.