While there are federal income tax rates that apply to all Canadians, each province and territory also has its own income tax rates. Combining these two rates helps determine what you might pay in annual income taxes.
What are provincial income tax rates?
As with federal tax rates, provincial tax rates aren’t applied as a flat rate on all your income. Rather, you pay the applicable tax rate for each portion of income that falls into a specific tax bracket.
For example, someone who lives in British Columbia and makes $60,000 in taxable income might pay a 5.06% tax rate on their first $45,654 and 7.7% on the remaining $14,346 of their income, rather than 7.7% on the full $60,000.
Your provincial tax rate is determined by where you live at the end of each tax year, which is generally December 31st.
Current provincial income tax rates
Provincial tax brackets, and the rates that apply to those brackets, vary quite a bit. Here are Canada’s provincial and territorial tax rates for 2023.
|Province/Territory||2023 Income Tax Rates|
|Alberta||10% on the first $142,292 of taxable income, plus
12% on $142,292.01 up to $170,751, plus
13% on $170,751.01 up to $227,668, plus
14% on $227,668.01 up to $341,502, plus
15% on the amount over $341,502
|British Columbia||5.06% on the first $45,654 of taxable income, plus
7.7% on $45,654.01 up to $91,310, plus
10.5% on $91,310.01 up to $104,835, plus
12.29% on $104,835.01 up to $127,299, plus
14.7% on $127,299.01 up to $172,602, plus
16.8% on $172,602.01 up to $240,716, plus
20.5% on the amount over $240,716
|Manitoba||10.8% on the first $36,842 of taxable income, plus
12.75% on $36,842.01 up to $79,625, plus
17.4% on the amount over $79,625
|New Brunswick||9.4% on the first $47,715 of taxable income, plus
14% on $47,715.01 up to $95,431, plus
16% on $95,431.01 up to $176,756, plus
19.5% on the amount over $176,756
|Newfoundland and Labrador||8.7% on the first $41,457 of taxable income, plus
14.5% on $41,457.01 up to $82,913, plus
15.8% on the next $82,913.01 up to $148,027, plus
17.8% on $148,027.01 up to $207,239, plus
19.8% on $207,239.01 up to $264,750, plus
20.8% on $264,750.01 up to $529,500, plus
21.3% on $529,500.01 up to $1,059,000, plus
21.8% on any amount over $1,059,000
|Northwest Territories||5.9% on the first $48,326 of taxable income, plus
8.6% on $48,326.01 up to $96,655, plus
12.2% on $96,655.01 up to $157,139, plus
14.05% on the amount over $157,139
|Nova Scotia||8.79% on the first $29,590 of taxable income, plus
14.95% on $29,590.01 up to $59,180, plus
16.67% on $59,180.01 up to $93,000, plus
17.5% on $93,000.01 up to $150,000, plus
21% on the amount over $150,000
|Nunavut||4% on the first $50,877 of taxable income, plus
7% on $50,877.01 up to $101,754, plus
9% on $101,754.01 up to $165,429, plus
11.5% on the amount over $165,429
|Ontario||5.05% on the first $49,231 of taxable income, plus
9.15% on $49,231.01 up to $98,463, plus
11.16% on $98,463.01 up to $150,000, plus
12.16% on $150,000.01 up to $220,000, plus
13.16% on the amount over $220,000
|Prince Edward Island||9.8% on the first $31,984 of taxable income, plus
13.8% on $31,984.01 up to $63,969, plus
16.7% on the amount over $63,969
|Quebec||14% on the first $49,275 of taxable income, plus
19% on $49,275.01 up to $98,540, plus
24% on $98,540.01 up to $119,910, plus
25.75% on the amount over $119,910
|Saskatchewan||10.5% on the first $49,720 of taxable income, plus
12.5% on $49,720.01 up to $142,058, plus
14.5% on the amount over $142,058
|Yukon||6.4% on the first $53,359 of taxable income, plus
9% on $53,359.01 up to $106,717, plus
10.9% on $106,717.01 up to $165,430, plus
12.8% on $165,430.01 up to $500,000, plus
15% on the amount over $500,000
|Source: Canada.ca, revenuquebec.ca|
Are federal and provincial tax rates combined?
Provincial and federal income taxes are combined to determine the overall amount of income tax you must pay. To come up with the total, calculate your federal taxes first, then calculate your provincial taxes and add them together.
So, using the previous example of $60,000 in taxable income for a person living in B.C.:
- Total federal income taxes might be $9365.26 ($53,359 at a 15% tax rate; $6,641 at a 20.5% tax rate).
- Total provincial income taxes would be $3,414.73 ($45,654 at a 5.06% tax rate; $14,346 at a 7.7% tax rate).
- Total income tax: $9,365.26 + $3,414.73 = $12,779.99.
The federal government collects provincial taxes and fees through the Canada Revenue Agency in all provinces and territories except Quebec, which handles its tax collection through Revenu Québec. This means Quebec residents must file separate federal and provincial tax returns every year.
Other provincial tax considerations
Just like there are federal tax credits available for individuals in Canada, which can reduce the amount of federal tax you owe, there are provincial and territorial tax credits available as well.
These credits differ from province to province, but you can search for any applicable tax credits in your home province on the Government of Canada website.