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.
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 |