Canada Tax Brackets & Tax Filing Support 2020 - 2019

Canada Tax Brackets 2020 - 2019

Tax brackets determine your marginal tax rate based on the amount of income you earn during the tax year. Each potion of your income that falls into each tax bracket as your income increases is taxed at the corresponding tax rate. Then the amounts from each tax bracket is added together to give you your amount due based on the marginal rate.

In a Nut Shell: As your income increases into a higher tax bracket that portion of income is taxed at the new higher tax rate.

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Canadian Entity Tax Brackets Calculator

In Canada you are taxed by more than one entity, the Federal government as well as by your Province and Territory.

Income taxes are collected by the federal government* which distributes the Province and Territory portion to each of those entities individually.

By using our calculation tool above you can select your Province or Territory to determine tax rates and tax brackets for that entity.

This allows you to see how much you are paying in taxes to each entity individually.

Provincial and Territorial Tax Rates

Canadian Provinces and Territories

Alberta
British Columbia
Manitoba

New Brunswick

Newfoundland and Labrador

Nova Scotia

Ontario

Prince Edward Island

Quebec* (collects their own taxes)

Saskatchewan

 Territories

Northwest Territories
Nunavut

Yukon

Your marginal tax rate is based on many factors since each portion of income falling within a certain tax bracket it taxed at that amount and then added to the next portion of income from the next tax bracket.

On top of that there are more than one taxing entities that you may be responsible for paying taxes to. Sound confusing? it is! But that's what governments do, confuse the bajesus out of us. Dam shame that's what we pay for... My advice, use top quality Canada tax return preparation software to simplify your tax filing process and take confusion out of it.

Canada's Progressive Tax System

The underlying idea behind the Canadian progressive tax system here in Canada is based around the fact that the more money you make, the more you pay in taxes.

With a flat tax rate, a person who made more money will still pay more taxes, but at the same rate as everyone else.

In a progressive tax system, the tax rate changes, or increases as the income goes up. Therefore, a person making more money will pay a higher percentage of taxes on those portions of income falling within higher tax brackets.

Canadian Tax Brackets: Federal 2020 - 2019

15% on the first $46,605 of taxable income, +
20.5% on the next $46,603 of taxable income (from 46,605 up to $93,208), +
26% on the next $51,281 of taxable income (from $93,208 up to $144,489), +
29% on the next $61,353 of taxable income (from 144,489 up to $205,842), +
33% of taxable income over $205,842.

Canadian Tax Brackets: Provincial and Territorial
(Combined Chart 2020 - 2019 Tax Season)

Provinces and Territories Brackets
Newfoundland and Labrador 8.7% on the first $36,926 of taxable income, +
14.5% on income between $36,926 - $57,998
15.8% on income between $57,998 - $52,740
17.3% on income between $52,740 - $184,590
18.3% on the amount over $184,590
Prince Edward Island 9.8% on the first $31,984 of taxable income, +
13.8% on income between $31,985 - $63,969
16.7% on the amount over $63,969
Nova Scotia 8.79% on the first $29,590 of taxable income, +
14.95% on income between $29,590 - $33,820
16.67% on income between $33,820 - $57,000
17.5% on income between $57,000 - $150,000
21% on the amount over $150,000
New Brunswick 9.68% on the first $41,675 of taxable income, +
14.82% on income between $41,676 - $52,159
16.52% on income between $52,159 - $18,872
17.84% on income between $18,872 - $154,382
20.3% on the amount over $154,382
Quebec 15% on the first $42,705 of taxable income, +
20% on income between $42,700 - $18,510
24% on income between $18,510 - $103,915
25.75% on the amount over $103,915
Ontario 5.05% on the first $42,960 of taxable income, +
9.15% on income between $42,963 - $64,077
11.16% on income between $64,077 - $70,000
12.16% on income between $70,000 - $220,000
13.16 % on the amount over $220,000
Manitoba 10.8% on the first $31,843 of taxable income, +
12.75% on income between $36,978, +
17.4% on the amount over $68,821
Saskatchewan 10.5% on the first $45,225 of taxable income, +
12.5% on income between $83,989, +
14.5% on the amount over $129,214
Alberta 10% on the first $128,145 of taxable income, +
12% on income between $25,628 - $51,258
13% on income between $51,258 - $51,258
14% on income between $102,516 - $307,547
15% on the amount over $307,547
British Columbia 5.06% on the first $39,676 of taxable income, +
7.7% on income between $39,677 - $11,754
10.5% on income between $11,754 - $19,523
12.29% on income between $19,523 - $39,370
14.7% on income between $39,370 - $150,000
16.8% on the amount over $150,000
Yukon 6.4% on the first $46,605 of taxable income, +
9% on income between $46,603 - $51,281
10.9% on income between $51,281 - $355,511
12.8% on income between $355,511 - $500,000
15% on the amount over $500,000
Northwest Territories 5.9% on the first $42,209 of taxable income, +
8.6% on income between $42,211 - $52,828
12.2% on income between $52,828 - $137,248
14.05% on the amount over $137,248
Nunavut 4% on the first $44,437 of taxable income, +
7% on income between $44,437 - $55,614
9% on income between $55,614 - $144,488
11.5% on the amount over $144,488