How Much Tax Should I Pay in Canada?

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Canadian Revenue Agency or CRA oversees the payment of taxes in both federal and provincial levels in Canada.

The Canadian income tax system is a self-assessment regime. Taxpayers assess their tax liability by filing a return with the CRA by the required filing deadline.

According to its website, the following are the CRA’s multi-tiered tax rates set for 2014:

  • 15% on the first $43,953 of taxable income, +
  • 22% on the next $43,954 of taxable income (on the portion of taxable income over $43,953 up to $87,907), +
  • 26% on the next $48,363 of taxable income (on the portion of taxable income over $87,907 up to $136,270), +
  • 29% of taxable income over $136,270.

This means if your income for the year is $43,953 your payable income to the federal government is the income multiplied by 15%. As your income exceeds this floor amount, higher tax rates are in place.

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Besides federal taxes, provincial governments also impose taxes with various rates but patterned from the federal tax computation.

Newfoundland and Labrador 7.7% on the first $34,254 of taxable income, +
12.5% on the next $34,254, +
13.3% on the amount over $68,508
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 $39,305 of taxable income, +
14.82% on the next $39,304, +
16.52% on the next $49,193, +
17.84% on the amount over $127,802
Quebec Go to Income tax rates (Revenu Québec Web site).
Ontario 5.05% on the first $40,120 of taxable income, +
9.15% on the next $40,122, +
11.16% on the next $69,758, +
12.16% on the next $70,000, +
13.16 % on the amount over $220,000
Manitoba 10.8% on the first $31,000 of taxable income, +
12.75% on the next $36,000, +
17.4% on the amount over $67,000
Saskatchewan 11% on the first $43,292 of taxable income, +
13% on the next $80,400, +
15% on the amount over $123,692
Alberta 10% of taxable income
British Columbia 5.06% on the first $37,606 of taxable income, +
7.7% on the next $37,607, +
10.5% on the next $11,141, +
12.29% on the next $18,504, +
14.7% on the next $45,142, +
16.8% on the amount over $150,000
Yukon 7.04% on the first $43,953 of taxable income, +
9.68% on the next $43,954, +
11.44% on the next $48,363, +
12.76% on the amount over $136,270
Northwest Territories 5.9% on the first $39,808 of taxable income, +
8.6% on the next $39,810, +
12.2% on the next $49,823, +
14.05% on the amount over $129,441
Nunavut 4% on the first $41,909 of taxable income, +
7% on the next $41,909, +
9% on the next $52,452, +
11.5% on the amount over $136,270

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