Personal income and corporate taxes were created to help the federal government finance the country during the First World War. That system has evolved to what it is today, and income taxes are levied separately at a national and provincial level.
When you earn a certain amount of money, how much you need to pay in personal income taxes changes based on what province you live in and how much of your income is taxable. Each income range has a cutoff point (tax bracket) and is taxed at a different percentage (tax rate). Canadian taxpayers pay income tax to the federal and provincial governments where they live. Each province has different brackets and rates, while the federal government is consistent across the country.
Credits and deductions are two common ways to reduce your taxes and improve your tax refund.
Here’s a rough breakdown of Canadian federal tax brackets with their corresponding rates and the tax brackets and rates for each province for 2022
Federal
| Tax Rate | Tax Brackets | Taxable Income |
| 15% | on the first $50,197 | $50,197 |
| 20.50% | on the next $50,195 | $50,197 up to $100,392 |
| 26% | on the next $55,233 | $100,392 up to $155,625 |
| 29% | on the next $66,083 | $155,625 up to $221,708 |
| 33% | on the portion over $221,708 | $221,708 and up |
Ontario
| Tax Rate | Tax Brackets | Taxable Income |
| 5.05% | on the first $46,226 | $46,226 |
| 9.15% | on the next $46,228 | over $46,226 up to $92,454 |
| 11.16% | on the next $57,546 | over $92,454 up to $150,000 |
| 12.16% | on the next $70,000 | over $150,000 up to $220,000 |
| 13.16% | on the portion over $220,000 | over $220,000 |
British Columbia
| Tax Rate | Tax Brackets | Taxable Income |
| 5.06% | on the first $42,184 | $42,184 |
| 7.70% | on the next $42,184 | over $42,184 up to $84,369 |
| 10.50% | on the next $12,497 | over $84,369 up to $96,866 |
| 12.29% | on the next $20,757 | over $96,866 up to $117,623 |
| 14.70% | on the next $41,860 | over $117,623 up to $159,483 |
| 16.80% | on the next $62,937 | over $159,483 up to $222,420 |
| 20.50% | on the portion over $222,420 | $222,420 and up |
Alberta
| Tax Rate | Tax Brackets | Taxable Income |
| 10% | on the first $131,220 | $131,220 |
| 12% | on the next $26,244 | over $131,220 up to $157,464 |
| 13% | on the next $52,488 | over $157,464 up to $209,952 |
| 14% | on the next $104,976 | over $209,952 up to $314,928 |
| 15% | on the portion over $314,928 | over $314,928 |
Saskatchewan
| Tax Rate | Tax Brackets | Taxable Income |
| 10.50% | on the first $46,773 | $46,773 |
| 12.50% | on the next $86,865 | over $46,773 up to $133,638 |
| 14.50% | on the portion over $133,638 | over $133,638 |
Manitoba
| Tax Rate | Tax Brackets | Taxable Income |
| 10.80% | on the first $34,431 | $34,431 |
| 12.75% | on the next $39,985 | over $34,431 up to $74,416 |
| 17.40% | on the portion over $74,716 | over $74,716 |
Quebec
| Tax Rate | Tax Brackets | Taxable Income |
| 15% | on the first $46,295 | $46,295 |
| 20% | on the next $45,105 | over $46,295 up to $92,580 |
| 24% | on the next $19,555 | over $92,580 up to $112,655 |
| 25.75% | on the portion over $109,755 | over $112,655 |
Newfoundland & Labrador
| Tax Rate | Tax Brackets | Taxable Income |
| 8.70% | on the first $39,147 | $39,147 |
| 14.50% | on the next $39,147 | over $39,147 up to $78,294 |
| 15.80% | on the next $61,486 | over $78,294 up to $139,780 |
| 17.80% | on the next $55,913 | over $139,780 up to $195,693 |
| 19.80% | on the next $54,307 | over $195,693 up to $250,000 |
| 20.80% | on the next $250,000 | over $250,000 up to $500,000 |
| 21.30% | on the next $500,000 | over $500,000 up to $1,000,000 |
| 21.80% | on the portion over $1,000,000 | over $1,000,000 |
Nova Scotia
| Tax Rate | Tax Brackets | Taxable Income |
| 8.79% | on the first $29,590 | $29,590 |
| 14.95% | on the next $29,590 | over $29,590 up to $59,180 |
| 16.67% | on the next $33,820 | over $59,180 up to $93,000 |
| 17.50% | on the next $57,000 | over $93,000 up to $150,000 |
| 21% | on the portion over $150,000 | over $150,000 |
New Brunswick
| Tax Rate | Tax Brackets | Taxable Income |
| 9.40% | on the first $44,887 | $44,887 |
| 14.82% | on the next $44,888 | over $44,887 up to $89,775 |
| 16.52% | on the next $56,180 | over $89,775 up to $145,955 |
| 17.84% | on the next $20,325 | over $145,955 up to $166,280 |
| 20.30% | on the portion over $166,280 | over $166,280 |
Prince Edward Island
| Tax Rate | Tax Brackets | Taxable Income |
| 9.80% | on the first $31,984 | $31,984 |
| 13.80% | on the next $31,985 | over $31,984 up to $63,969 |
| 16.70% | on the portion over $63,969 | over $63,969 |
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