“The tax man has what it takes to take what you have”

What are the tax brackets in Canada?

In Canada, income tax rates vary based on your income level. The federal government sets the federal income tax rates, while each province and territory determines its own rates.

How much tax do you have to pay in Canada? This is a good question to ask. Here are the federal income tax rates for 2024 and your tax bracket:

  • 15% on the first $53,358 of taxable income.
  • 20.5% on taxable income over $53,359 up to $106,717.
  • 26% on taxable income over $106,717 up to $165,430.
  • 29% on taxable income over $165,430 up to $235,675.
  • 33% on any taxable income over $235,67512.

Special notes

These are marginal tax rates, meaning they only apply to the portion of your income that falls within each bracket.

For example, if your taxable income is $60,000, only the first $55,867 would be taxed at 15%. The remaining $4,133 would be taxed at the next marginal rate (20.5%).

Keep in mind that these rates apply to your taxable income, which is calculated after various deductions, credits, and exemptions have been considered.

Provincial or territorial income tax rates are applied in addition to the federal rates. For specific provincial or territorial tax rates, you can refer to the respective government websites.

Remember that tax planning and understanding your tax obligations are essential for financial well-being!

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