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.

» MORE: What are income taxes?

What are provincial income tax rates?

Each province and territory determines its own distinct tax rates, tax credits, 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 $43,070 and 7.7% on the remaining $16,930 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.

» MORE: How tax credits work in Canada

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 2022.

Note that Alberta’s 2022 tax rates won’t be in effect until they get passed by the provincial legislature.

Province/Territory	2022 Income Tax Rates
Alberta	10% on the first $134,238 of taxable income, plus 12% on $134,238.01 up to $161,068, plus 13% on $161,086.01 up to $214,7781 plus 14% on $214,781.01 up to $322,171, plus 15% on the amount over $322,171
British Columbia	5.06% on the first $43,070 of taxable income, plus 7.7% on $43,070.01 up to $98,901, plus 10.5% on $86,141.01 up to $98,901, plus 12.29% on $98,901.01 up to $120,094, plus 14.7% on $120,094.01 up to $162,832, plus 16.8% on $162,832.01 up to $227,091, plus 20.5% on the amount over $227,091
Manitoba	10.8% on the first $34,431 of taxable income, plus 12.75% on $34,431.01 up to $74,416, plus 17.4% on the amount over $74,416
New Brunswick	9.4% on the first $44,887 of taxable income, plus 14.82% on $44,887.01 up to $145,995, plus 16.52% on $$89,775.01 up to $145,995, plus 17.84% on $145,995.01 up to $166,280, plus 20.3% on the amount over $166,280
Newfoundland and Labrador	8.7% on the first $39,147 of taxable income, plus 14.5% on $39,147.01 up to $78,294, plus 15.8% on the next $78,294.01 up to $139,780, plus 17.8% on $139,780.01 up to $195,693, plus 19.8% on $195,693.01 up to $250,000, plus 20.8% on $250,000.01 up to $500,000, plus 21.3% on $500,000.01 up to $1 million, plus 21.8% on any amount over $1 million
Northwest Territories	5.9% on the first $45,462 of taxable income, plus 8.6% on $45,462.01 up to $90,927, plus 12.2% on $90,927.01 up to $147,826, plus 14.05% on the amount over $147,826
Nova Scotia	8.79% on the first $29,590 of taxable income, plus 14.95% on $29,591 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 $47,862 of taxable income, plus 7% on $47,862.01 to $95,724, plus 9% on $95,724.01 up to $155,625, plus 11.5% on the amount over $155,625
Ontario	5.05% on the first $46,226 of taxable income, plus 9.15% on $46,261 up to $150,000, plus 11.16% on $92,455.01 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	15% on the first $46295 of taxable income, plus 20% on $46,295.01 up to $92,580, plus 24% on $92,580.01 up to $112,655, plus 25.75% on the amount over $112,655
Saskatchewan	10.5% on the first $46,773 of taxable income, plus 12.5% on $46,773.01 up to $133,638, plus 14.5% on the amount over $133,638
Yukon	6.4% on the first $50,197 of taxable income, plus 9% on $50,197.01 up to $100,392, plus 10.9% on $100,392.01 up to $155,625, plus 12.8% on $155,625.01 up to $500,000, plus 15% on the amount over $500,000
Source: Canada.ca

How do provincial income taxes interact with federal taxes?

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: $9,539.17 ($50,197 at a 15% tax rate; $9,803 at a 20.5% tax rate).
Total provincial income taxes would be: $3,482.95 ($43,070 at a 5.06% tax rate; $16,930 at a 7.7% tax rate).
Total income tax: $9,539.17 + $3,482.95 = $13,022.12.

Provincial taxes and fees are collected by the federal government through the Canada Revenue Agency in all provinces and territories except Quebec, which handles its own tax collection through Revenu Québec. This means Quebec residents need to file separate federal and provincial tax returns every year.

» MORE: What are tax deductions?

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.

About the Author

Hannah Logan

Hannah Logan is a writer and blogger who specializes in personal finance and travel. You can follow her personal travel blog EatSleepBreatheTravel.com or find her on Instagram @hannahlogan21.

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