Ativa Interactive Corp. > Discover > Calculators > Tax Planning > Marginal Tax Rate Calculator

Marginal Tax Rate Calculator

Canada has a progressive tax system, meaning that tax rates increase as income increases. The marginal tax rate calculator illustrates how this system taxes your income incrementally. The Government of Canada sets the federal income tax rates for individuals. Each province and territory determines their own income tax rates.

Calculate how your marginal tax rate differs from your average tax rate.


This marginal tax rate calculator illustrates how your income is divided among several federal and provincial or territorial tax brackets. The level of income that falls in each tax bracket is taxed at the tax rate of that bracket.

Your marginal tax rate does not apply to your entire taxable income and only applies to a portion of your income above a certain threshold. Your marginal tax rate depends on the highest tax bracket, into which a part of your income falls.

Calculations use marginal tax rates as of January 2023. Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit. The Average Tax Rate is calculated by dividing the Taxes Payable amount by the Taxable Income amount. The tax calculator is updated yearly, once the federal government has released the year’s income tax rates.

To help with your planning, try these related calculators:

Marginal Tax Rate Calculator

Companion Infographic

Taxes can be confusing, and the tax rules continue to change. This Tax Tips infographic is updated annually and outlines deductions and credits to help ensure your clients are claiming all they are allowed to help lessen their tax bill.

Tax Tips Infographic


These consumer-facing financial calculators can be embedded in your web site quickly and easily.

Calculators are easy-to-use and fully responsive on any device – phone, tablet, laptop or desktop.

Full Branding
Calculators can be fully branded according to your branding style guide. You’ll be up and running with a quick turnaround.

Calculators are available in English and French. 

The calculator can be viewed for free up to five (5) times.
To use the full-featured versions of these calculators in FreshPlan, please contact us.

Discover more