Income Tax Rates-Canada

From Wiki


  • The starting rate of Federal income tax is 15%, and this rises to 29% for income over $126,264 (2008).


  • Provincial rates vary.


  • Canada has a reputation of being a high tax country, but in recent years rates have become more competitive internationally.


  • The combined marginal rates vary between 20.06% of the first $35,016 in British Columbia to 48.25% of income over $126,264 in Nova Scotia. The lowest top marginal rate is in Alberta at 39%.


  • Here are some websites that you can use to find out income tax rates in different provinces:
    • Tax Tips Canada gives a good summary of combined rates by province.
    • Ernst & Young has a quick and easy calculator for combined federal and provincial income tax.
    • Canada Revenue Agency's web page is here.


  • As a very rough guide - for instance, if are trying to decide if a job offers a livable wage - assume that tax and other payroll withholdings will take 25% of your gross pay in normal earnings ranges.


  • See the wiki article on tax credits, which reduce the effective rate of tax people pay.


  • This is one of a series of articles on Taxation.

Top