Income Taxes in Canada 2016

income taxes canada

Federal Income Taxes (2016)

The Canada Revenue Agency (CRA) administers the federal income tax system. Federal income taxes, both personal and corporate are levied under the provisions of the Income Tax Act. Each year, people who are Canadian residents for tax purposes complete an income tax return.




Federal Income Tax Brackets

15% on the first $45,282 of taxable income, +

20.5% on the next $45,281 of taxable income (on the portion of taxable income over $45,282 up to $90,563), +

26% on the next $49,825 of taxable income (on the portion of taxable income over $90,563 up to $140,388), +

29% on the next $59,612 of taxable income (on the portion of taxable income over $140,388 up to $200,000), +

33% of taxable income over $200,000.

Provincial/Territorial Income Taxes (2016)

Provincial and territorial income taxes are levied under various provincial statutes.

Newfoundland and Labrador

8.2% on the first $35,148 of taxable income, +
13.5% on the next $35,147, +
14.55% on the next $55,205, +
15.8% on the next $50,200, +
16.8% on the amount over $175,700

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 $40,492 of taxable income, +
14.82% on the next $40,493, +
16.52% on the next $50,679, +
17.84% on the next $18,336, +
20.3% on the amount over $150,000

Quebec

16% on the first $42,390 or less
20% on more than $42,390, but not more than $84,780
24% on more than $84,780, but not more than $103,150
25.75% on more than $103,150

Ontario

5.05% on the first $41,536 of taxable income, +
9.15% on the next $41,539, +
11.16% on the next $66,925, +
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 $44,601 of taxable income, +
13% on the next $82,829, +
15% on the amount over $127,430

Alberta

10% on the first $125,000 of taxable income, +
12% on the next $25,000, +
13% on the next $50,000, +
14% on the next $100,000, +
15% on the amount over $300,000

British Columbia

5.06% on the first $38,210 of taxable income, +
7.7% on the next $38,211, +
10.5% on the next $11,320, +
12.29% on the next $18,802, +
14.7% on the amount over $106,543

Yukon

6.4% on the first $45,282 of taxable income, +
9% on the next $45,281, +
10.9% on the next $49,825, +
12.8% on the next $359,612, +
15% on the amount over $500,000
Northwest Territories
5.9% on the first $41,011 of taxable income, +
8.6% on the next $41,013, +
12.2% on the next $51,329, +
14.05% on the amount over $133,353

Nunavut

4% on the first $43,176 of taxable income, +
7% on the next $43,175, +
9% on the next $54,037, +
11.5% on the amount over $140,388

Sources:

Canada Revenue Agency

Revenu Quebec

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