PERSONAL INCOME TAX RATES – COMBINED FEDERAL AND PROVINCIAL Personal Income Tax Rates
Ordinary Income and Interest
Highest Marginal Personal Rate as of September 24, 2013
| 2010 | 2011 | 2012 | 2013 | 2014 | Highest tax Bracket (2013) | |
|---|---|---|---|---|---|---|
| Alberta | 39.00% | 39.00% | 39.00% | 39.00% | 39.00% | $135,055 |
| British Columbia | 43.70% | 43.70% | 43.70% | 43.70% | 45.80% | $104,755 |
| Saskatchewan | 44.00% | 44.00% | 44.00% | 44.00% | 44.00% | $122,590 |
| Manitoba | 46.40% | 46.40% | 46.40% | 46.40% | 46.40% | $67,001 |
| Ontario | 46.41% | 46.41% | 47.97% | 49.53% | 49.53% | $500,001 |
| Quebec | 53.00% | 48.22% | 48.22% | 49.97% | 49.97% | $100,001 |
| New Brunswick | 43.30% | 43.30% | 43.30% | 45.07% | 46.84% | $126,663 |
| Nova Scotia | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | $150,001 |
| Prince Edward Island | 47.37% | 47.37% | 47.37% | 47.37% | 47.37% | $63,970 |
| Newfoundland And Labrador | 43.40% | 42.30% | 42.30% | 42.30% | 42.30% | $67,497 |
| Northwest Territories | 43.05% | 43.05% | 43.05% | 43.05% | 43.05% | $128,287 |
| Nanavut | 40.50% | 40.50% | 40.50% | 40.50% | 40.50% | $135,055 |
| Yukon | 42.40% | 42.40% | 42.40% | 42.40% | 42.40% | $135,055 |
Highlights
The highest marginal personal tax rate is the rate of tax that will be assessed on income over the highest tax brackets, as provided above.
In an amendment to its 2012 budget, Ontario temporarily introduced the “Deficit-Fighting High-Income Tax Bracket”, which will apply to an Ontario individual taxpayer’s taxable income in excess of $500,000. The marginal rate of tax is 46.41% on taxable income between $78,044 and $500,000 in the 2012 taxation year. The Ontario Liberal government says it will eliminate the bracket once Ontario’s budget is balanced.
British Columbia’s 2013 budget announced a two year increase in the personal income tax rate for individuals earning more than $150,000. The provincial rates will increase by 2.1 percentage points to 16.8%, starting January 1, 2014.
The above tax rates are for informational purposes only. Caution must be exercised with respect to the use of the information due to possible misinterpretation or misapplication of the tax rates.