Siddhi Bagwe
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Beth Buczynski
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?
Each province and territory determines its own distinct tax credits, tax rates and tax deductions. Except for Quebec, all provinces use the federal government’s definition of taxable income.
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.
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