Personal income and corporate taxes were created to help the federal government finance the country during the First World War. That system has evolved into 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.
| Tax Rate | Taxable Income |
| FEDERAL | |
| 15% | $50,197 |
| 20.50% | $50,197 up to $100,392 |
| 26% | $100,392 up to $155,625 |
| 29% | $155,625 up to $221,708 |
| 33% | $221,708 and up |
| ONTARIO | |
| 5.05% | $46,226 |
| 9.15% | over $46,226 up to $92,454 |
| 11.16% | over $92,454 up to $150,000 |
| 12.16% | over $150,000 up to $220,000 |
| 13.16% | over $220,000 |
| BRITISH COLUMBIA | |
| 5.06% | $42,184 |
| 7.70% | over $42,184 up to $84,369 |
| 10.50% | over $84,369 up to $96,866 |
| 12.29% | over $96,866 up to $117,623 |
| 14.70% | over $117,623 up to $159,483 |
| 16.80% | over $159,483 up to $222,420 |
| 20.50% | $222,420 and up |
| ALBERTA | |
| 10% | $131,220 |
| 12% | over $131,220 up to $157,464 |
| 13% | over $157,464 up to $209,952 |
| 14% | over $209,952 up to $314,928 |
| 15% | over $314,928 |
| SASKATCHEWAN | |
| 10.50% | $46,773 |
| 12.50% | over $46,773 up to $133,638 |
| 14.50% | over $133,638 |
| MANITOBA | |
| 10.80% | $34,431 |
| 12.75% | over $34,431 up to $74,416 |
| 17.40% | over $74,716 |
| QUEBEC | |
| 15% | $46,295 |
| 20% | over $46,295 up to $92,580 |
| 24% | over $92,580 up to $112,655 |
| 25.75% | over $112,655 |
| NEWFOUNDLAND & LABRADOR | |
| 8.70% | $39,147 |
| 14.50% | over $39,147 up to $78,294 |
| 15.80% | over $78,294 up to $139,780 |
| 17.80% | over $139,780 up to $195,693 |
| 19.80% | over $195,693 up to $250,000 |
| 20.80% | over $250,000 up to $500,000 |
| 21.30% | over $500,000 up to $1,000,000 |
| 21.80% | over $1,000,000 |
| NOVA SCOTIA | |
| 8.79% | $29,590 |
| 14.95% | over $29,590 up to $59,180 |
| 16.67% | over $59,180 up to $93,000 |
| 17.50% | over $93,000 up to $150,000 |
| 21% | over $150,000 |
| NEW BRUNSWICK | |
| 9.40% | $44,887 |
| 14.82% | over $44,887 up to $89,775 |
| 16.52% | over $89,775 up to $145,955 |
| 17.84% | over $145,955 up to $166,280 |
| 20.30% | over $166,280 |
| PRINCE EDWARD ISLAND | |
| 9.80% | $31,984 |
| 13.80% | over $31,984 up to $63,969 |
| 16.70% | over $63,969 |