Every year taxpayers in Canada have to go through the rigorous task of figuring out how much tax to pay to the government. This whole process can be tiresome and time taking. To make it a little easier, we present you all the relevant information to go through the tax paying period easily.
Check Tax Rates
Step by step process explained in detailed
Implementation of federal and provincial taxes
the net income from all sources after deduction of eligible deductions. After you know your taxable income, you can apply the relevant federal and provincial rates to your income and calculate the taxes. You need to calculate the federal tax first, provincial rate second then add the two together.
The federal and provincial taxes you pay on your sources of income is your marginal tax rate. The tax rates are different based on the place you live in Canada and the income declared at the end of the year on your T1 General Income Tax Return.
Know the amount of the tax to be paid
The amount of tax you pay depends on your location in Canada and the income you declare from all sources. Furthermore, your provincial rate depends on the province you live in on the 31st December of the tax year.
List of tax bracket rates in Canada
| Provinces & Territories | Rates |
|---|---|
| Newfoundland and Labrador | 8.7% on the first $37,591 of taxable income, + 14.5% on the next $37,590, + 15.8% on the next $59,043, + 17.3% on the next $53,689, + 18.3% on the amount over $187,913 |
| Prince Edward Island | 9.8% on the first $31,984 of taxable income, + 13.8% on the next $31,985, + 16.7% on the amount over $63,969 |
| Nova Scotia | 8.79% on the first $29,590 of taxable income, + 14.95% on the next $29,590, + 16.67% on the next $33,820, + 17.5% on the next $57,000, + 21% on the amount over $150,000 |
| New Brunswick | 9.68% on the first $42,592 of taxable income, + 14.82% on the next $42,592, + 16.52% on the next $53,307, + 17.84% on the next $19,287, + 20.3% on the amount over $157,778 |
| Quebec | Go to Income tax rates (Revenu Québec Web site). |
| Ontario | 5.05% on the first $43,906 of taxable income, + 9.15% on the next $43,907, + 11.16% on the next $62,187, + 12.16% on the next $70,000, + 13.16 % on the amount over $220,000 |
| Manitoba | 10.8% on the first $32,670 of taxable income, + 12.75% on the next $37,940, + 17.4% on the amount over $70,610 |
| Saskatchewan | 10.5% on the first $45,225 of taxable income, + 12.5% on the next $83,989, + 14.5% on the amount over $129,214 |
| Alberta | 10% on the first $131,220 of taxable income, + 12% on the next $26,244, + 13% on the next $52,488, + 14% on the next $104,976, + 15% on the amount over $314,928 |
| British Columbia | 5.06% on the first $40,707 of taxable income, + 7.7% on the next $40,709, + 10.5% on the next $12,060, + 12.29% on the next $20,030, + 14.7% on the next $40,394, + 16.8% on the amount over $153,900 |
| Yukon | 6.4% on the first $47,630 of taxable income, + 9% on the next $47,629, + 10.9% on the next $52,408, + 12.8% on the next $352,333, + 15% on the amount over $500,000 |
| Northwest Territories | 5.9% on the first $43,137 of taxable income, + 8.6% on the next $43,140, + 12.2% on the next $53,990, + 14.05% on the amount over $140,267 |
| Nunavut | 4% on the first $45,414 of taxable income, + 7% on the next $45,415, + 9% on the next $56,838, + 11.5% on the amount over $147,667 |