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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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