Provincial Income Tax Rates in Canada
While federal income tax rates apply to all Canadians, each province and territory also has its own income tax rates that apply to residents. 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 on the portion of your taxable income that falls into a specific tax bracket.
For example, someone who lives in British Columbia and earned $60,000 in taxable income in 2024 would pay a 5.06% tax rate on their first $47,937 and 7.7% on the remaining $12,063 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 December 31.
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 | 2024 INCOME TAX RATES |
|---|---|
Alberta | 10% on the first $148,269 of taxable income, plus 12% on $148,269.01 up to $177,922, plus 13% on $177,922.01 up to $237,230, plus 14% on $237,230.01 up to $355,845, plus 15% on the amount over $355,845 |
British Columbia | 5.06% on the first $47,937 of taxable income, plus 7.7% on $47,937.01 up to $95,875, plus 10.5% on $95,875.01 up to $110,076, plus 12.29% on $110,076.01 up to $133,664, plus 14.7% on $133,064.01 up to $181,232, plus 16.8% on $181,232.01 up to $252,752, plus 20.5% on the amount over $252,752 |
Manitoba | 10.8% on the first $47,000 of taxable income, plus 12.75% on $47,000.01 up to $100,000, plus 17.4% on the amount over $100,000 |
New Brunswick | 9.4% on the first $49,958 of taxable income, plus 14% on $49,958.01 up to $99,916, plus 16% on $99,916.01 up to $185,064, plus 19.5% on the amount over $185,064 |
Newfoundland and Labrador | 8.7% on the first $43,198 of taxable income, plus 14.5% on $43,198.01 up to $86,395, plus 15.8% on the next $86,395.01 up to $154,244, plus 17.8% on $154,244.01 up to $215,943, plus 19.8% on $215,943.01 up to $275,870, plus 20.8% on $275,870.01 up to $551,739, plus 21.3% on $551,739.01 up to $1,103,478, plus 21.8% on any amount over $1,103,478 |
Northwest Territories | 5.9% on the first $50,597 of taxable income, plus 8.6% on $50,597.01 up to $101,198, plus 12.2% on $101,198.01 up to $164,525, plus 14.05% on the amount over $164,525 |
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 $53,268 of taxable income, plus 7% on $53,268.01 up to $106,537, plus 9% on $106,537.01 up to $173,205, plus 11.5% on the amount over $173,205 |
Ontario | 5.05% on the first $51,446 of taxable income, plus 9.15% on $51,446.01 up to $102,894, plus 11.16% on $102,894.01 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 | 9.65% on the first $32,656 of taxable income, plus 13.63% on $32,656.01 up to $64,313, plus 16.65% on $64,313.01 up to $105,000, plus 18.00% on $105,000.01 up to $140,000, plus 18.75% on the amount over $140,000 |
Quebec | 14% on the first $51,780 of taxable income, plus 19% on $51,780.01 up to $103,545, plus 24% on $103,545.01 up to $126,000, plus 25.75% on the amount over $126,000 |
Saskatchewan | 10.5% on the first $52,057 of taxable income, plus 12.5% on $52,057.01 up to $148,734, plus 14.5% on the amount over $148,734 |
Yukon | 6.4% on the first $55,867 of taxable income, plus 9% on $55,867.01 up to $111,733, plus 10.9% on $111,733.01 up to $173,205, plus 12.8% on $173,205.01 up to $500,000, plus 15% on the amount over $500,000 |
Sources: Canada.ca, revenuquebec.ca
Are federal and provincial tax rates combined?
Provincial and federal income tax rates are not combined, but the resulting amounts of income taxes owing are combined to determine the overall amount of income tax you must pay. To come up with the total, you’ll calculate your federal taxes first, then calculate your provincial taxes and add them together. You can do this while filling out your tax return on paper, or use tax software to handle the calculations.
Let’s continue the previous example of a person who lives in BC and has $60,000 in taxable income for 2024:
Total federal income taxes might be $9,227.32 ($55,867 at a 15% tax rate; $4,133 at a 20.5% tax rate).
Total provincial income taxes would be $3,354.46 ($47,937 at a 5.06% tax rate; $12,063 at a 7.7% tax rate).
Total income tax: $9,227.32 + $3,354.46= $12,581.78.
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.
The example above doesn’t include any tax credits because they are unique to each person’s situation, but it’s possible that our fictional taxpayer could pay less than the amount we calculated if they qualify for various credits.
Tax 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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Sandra MacGregor
Helen Burnett-Nichols
