General information only — not financial advice for your situation.
This is a learning tool. Always check CRA My Account records and talk to a qualified professional for your own numbers.
Technical definition
The rate of tax applied to the last (or next) dollar of taxable income. Canada uses a graduated system where federal and provincial brackets each impose increasing rates as income rises. The marginal rate determines the true tax cost or savings of an additional dollar of income or deduction.
Examples
- • An Ontario resident earning $60,000 has a combined federal + provincial marginal rate of about 29.65%. Earning an extra $1,000 means roughly $296.50 more in tax.
- • A $5,000 RRSP deduction at a 29.65% marginal rate saves $1,482.50 in tax.
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About this site
Every number on this site is sourced from CRA publications, the Income Tax Act, or provincial fiscal releases. We show the math, cite the sources, and never tell you what to do with your money.