Income Tax Rates-Canada
- The starting rate of Federal income tax is 15%, and this rises to 29% for income over $136,270 (2014).
- Provincial rates vary, and this rate needs to be added on to the Federal rate above.
- Canada has a reputation of being a high tax country, but in recent years rates have become more competitive internationally.
- Here are some websites that you can use to find out income tax rates in different provinces:
- 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 30% 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.