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INCOME TAX RATES

Tax Tax
Rates Brackets
Federal 15.00% Up to $42,707
22.00% 42,708 -85,414
26.00% 85,415-132,406
29.00% 132,407 and over
British Columbia 5.06% Up to $37,013
7.70% 37,014–74,028
10.50% 74,029–84,993
12.29% 84,994–103,205
14.70% 103,206and over
Alberta 10.00% All income
Saskatchewan 11.00% Up to $ $42,065
13.00% 42,066–120,185
15.00% 120,186and over
Manitoba 10.80% Up to $31,000
12.75% 31,001-67,000
17.40% 67,001 and over
Ontario 5.05% Up to $39,020
9.15% 39,021–78,043
78,044and
11.16%
over
Quebec 16.00% Up to $ 40,100
20.00% 40,101–80,200
24.00% 80,201and over
New Brunswick 9.10% Up to $38,190
12.10% 38,191-76,380
12.40% 76,381-124,178
14.30% 124,179 and over
Nova Scotia 8.79% Up to $29,590
14.95% 29,591-59,180
16.67% 59,181-93,000
17.50% 93,001 -150,000
21.00% 150,001 and over
Prince Edward Island 9.80% Up to $31,984
13.80% 31,985-63,969
63,970 and
16.70%
over
Newfoundland 7.70% Up to $32,893
12.50% 32,894–65,785
65,786 and
13.30%
over
INCOME TAX RATES - IN CLASS PROBLEM
Tax Tax EMPLOYMENT INCOME TAX CALCULATIONS:
Rates Brackets Suppose a client earns $90,000 in income in Quebec
Federal 15.00% Up to $42,707
22.00% 42,708 -85,414 Justify your answer using
26.00% 85,415-132,406 · Total Tax
29.00% 132,407 and over · Marginal Tax Rate
British Columbia 5.06% Up to $37,013 · Average Tax Rate
7.70% 37,014–74,028
10.50% 74,029–84,993 DIVIDEND TAX CALCULATIONS:
Suppose a Ontario resident earns $50,000 in dividends.
12.29% 84,994–103,205
Calculate the total tax paid along with average tax rate.
Gross Up at 138%; Federal tax credit at 14%, Provincial tax
14.70% 103,206and over
credit at 6%.
Alberta 10.00% All income
Saskatchewan 11.00% Up to $ $42,065 CAPITAL GAINS TAX CALCULATIONS:
Suppose a Nova Scotia resident earns $40,000 in capital gains.
13.00% 42,066–120,185
Calculate the total tax paid along with average tax rate.
15.00% 120,186and over
Manitoba 10.80% Up to $31,000
12.75% 31,001-67,000 INTEREST INCOME
Suppose an Ontario resident had $92,000 of interest income.
17.40% 67,001 and over Calculate total tax paid, along with average and marginal tax
rates.
Ontario 5.05% Up to $39,020
9.15% 39,021–78,043
78,044and
11.16%
over
Quebec 16.00% Up to $ 40,100
20.00% 40,101–80,200
24.00% 80,201and over
New Brunswick 9.10% Up to $38,190
12.10% 38,191-76,380
12.40% 76,381-124,178
14.30% 124,179 and over
Nova Scotia 8.79% Up to $29,590
14.95% 29,591-59,180
16.67% 59,181-93,000
17.50% 93,001 -150,000
21.00% 150,001 and over
Prince Edward Island 9.80% Up to $31,984
13.80% 31,985-63,969
63,970 and
16.70%
over
Newfoundland 7.70% Up to $32,893
12.50% 32,894–65,785
65,786 and
13.30%
over
INCOME TAX RATES - ANSWER ONLINE!!
Tax Tax EMPLOYMENT INCOME TAX CALCULATIONS:
Rates Brackets Suppose a client earns $125,000 in income in BC
Federal 15.00% Up to $42,707
22.00% 42,708 -85,414 Justify your answer using
26.00% 85,415-132,406 · Total Tax
29.00% 132,407 and over · Marginal Tax Rate
British Columbia 5.06% Up to $37,013 · Average Tax Rate
7.70% 37,014–74,028
10.50% 74,029–84,993 DIVIDEND TAX CALCULATIONS:
Suppose a BC resident earns $20,000 in dividends. Calculate
12.29% 84,994–103,205
the total tax paid along with average tax rate.
Gross Up at 138%; Federal tax credit at 14%, Provincial tax
14.70% 103,206and over
credit at 6%.
Alberta 10.00% All income
Saskatchewan 11.00% Up to $ $42,065 CAPITAL GAINS TAX CALCULATIONS:
Suppose a BC resident earns $20,000 in capital gains.
13.00% 42,066–120,185
Calculate the total tax paid along with average tax rate.
15.00% 120,186and over
Manitoba 10.80% Up to $31,000
12.75% 31,001-67,000 INTEREST INCOME

Suppose BC resident had $50,000 of interest income. Calculate


17.40% 67,001 and over
total tax paid, along with average and marginal tax rates.

Ontario 5.05% Up to $39,020


9.15% 39,021–78,043
78,044and
11.16%
over
Quebec 16.00% Up to $ 40,100
20.00% 40,101–80,200
24.00% 80,201and over
New Brunswick 9.10% Up to $38,190
12.10% 38,191-76,380
12.40% 76,381-124,178
14.30% 124,179 and over
Nova Scotia 8.79% Up to $29,590
14.95% 29,591-59,180
16.67% 59,181-93,000
17.50% 93,001 -150,000
21.00% 150,001 and over
Prince Edward Island 9.80% Up to $31,984
13.80% 31,985-63,969
63,970 and
16.70%
over
Newfoundland 7.70% Up to $32,893
12.50% 32,894–65,785
65,786 and
13.30%
over
INDIVIDUAL INCOME TAX RATES
Tax Tax
Rates Brackets Tax Effect
Federal 15.00% Up to $42,707 6,406.05
22.00% 42,708 -85,414 9,395.54
26.00% 85,415-132,406 10,292.36
29.00% 132,407 and over 26,093.95 FEDERAL
British Columbia 5.06% Up to $37,013 1,872.86 TOTAL
7.70% 37,014–74,028 2,850.16 37,410.41
10.50% 74,029–84,993 1,151.33
12.29% 84,994–103,205 2,238.25
14.70% 103,206and over 3203.865
Alberta 10.00% All income 11,316.46 PROVINCIAL
Saskatchewan 11.00% Up to $ $42,065
13.00% 42,066–120,185
15.00% 120,186and over
Manitoba 10.80% Up to $31,000
12.75% 31,001-67,000
17.40% 67,001 and over
Ontario 5.05% Up to $39,020
39,021–
9.15%
78,043
78,044and
11.16%
over
Quebec 16.00% Up to $ 40,100
20.00% 40,101–80,200
24.00% 80,201and over
New Brunswick 9.10% Up to $38,190
12.10% 38,191-76,380
12.40% 76,381-124,178
14.30% 124,179 and over
Nova Scotia 8.79% Up to $29,590
14.95% 29,591-59,180
16.67% 59,181-93,000
17.50% 93,001 -150,000
21.00% 150,001 and over
Prince Edward Island 9.80% Up to $31,984
13.80% 31,985-63,969
63,970 and
16.70%
over
Newfoundland 7.70% Up to $32,893
32,894–
12.50%
65,785
65,786 and
13.30%
over
DIVIDEND EXAMPLE

Dividend Income 20,000


Gross Up 138%
Grossed Up Dividend $ 27,600.00 **

Federal Tax Rate 29.00%

Gross Federal Tax


8,004.00
Federal Tax Credit 14.00%
Less: Federal Dividend Tax Credit (3,864.00)
Net Federal Dividend Tax $ 4,140.00

Provincial Tax Rate 14.70%


Gross Provincial Tax 4,057
Provincial Tax Credit 6.00%
Less: Provincial Dividend Tax Credit (1,656)
Net Provincial Dividend Tax $ 2,401.20

Total Net Tax on Dividend Income $ 6,541.20


After-Tax Dividend Income $ 13,458.80
Dividend Tax Rate 32.71%
Marginal Tax Rate 43.70%
CAPITAL GAIN EXAMPLE

Capital Gain 20,000


50% portion 50%
Taxable Portion 10,000

Federal Tax Rate 29.00%


Net Federal Dividend Tax $ 2,900

Provincial Tax Rate 14.70%


Net Provincial Dividend Tax $ 1,470

Total Net Tax on Capital Gain $ 4,370


After-Tax Capital Gains $ 15,630
Capital Gains Tax Rate 21.85%
Marginal Tax Rate 43.70%
INTEREST EXAMPLE

Interest Income 50,000


50% portion 100%
Taxable Portion 50,000

Federal Tax Rate 29.00%


Net Federal Dividend Tax $ 14,500

Provincial Tax Rate 14.70%


Net Provincial Dividend Tax $ 7,350

Total Net Tax on Interest Income $ 21,850


After-Tax Capital Gains $ 28,150
Capital Gains Tax Rate 43.70%
Marginal Tax Rate 43.70%