As another tax season comes into play we offer our Canada Tax
Rates Calculator for determining your
Federal tax liability. This calculator does not
reflect provincial tax rates that will also be due for your
territory but we do offer a link below where you can calculate those
taxes as well.
These are the rates that an
individual will use when completing their income tax and
benefit return. The information may change during the year to
reflect updates in the tax laws.
Provincial and Territorial
Provincial/Territorial Tax Rates (combined chart)
Federal taxes are collected by the Canada Revenue
Agency (CRA), formerly known as "Revenue Canada" or the "Canada
Customs and Revenue Agency".
Under "Tax Collection Agreements", CRA collects and remits
payments to the provinces of Canada. On behalf of all provinces
except Quebec, these taxes are collected so that individuals
outside of Quebec file only one set of tax forms each year for
their federal and provincial income taxes.
Canada tax preparation and
filing purposes the Ministère du
revenu du Québec collects corporate taxes on behalf of all
provinces except Quebec and Alberta, on behalf of the federal
government, and remits it to Ottawa..
The provincial governments of New Brunswick, Newfoundland Nova
Scotia, and Labrador, British Columbia, and Ontario no longer
impose a separate provincial sales tax and in those provinces
the federal government collects the goods and services tax at a
rate higher than in the other provinces.
The additional revenue
from this Harmonized Sales Tax is paid by the federal government
to the five harmonizing provinces.
Newfoundland and Labrador
Prince Edward Island
Personal income for
individuals in the Canadian provinces is calculated by
adding provincial / territorial tax to federal income tax.
However, in some Canadian provinces / territories additional
surtaxes are also added to the provincial / territorial
taxes (i.e. Nova Scotia, Ontario). This is done to
accurately calculate the final total tax liability due based
on each individuals working and living circumstances
throughout the Canadian territories.
Individual residents in Canada for tax purposes are
subjected to taxation on all of their worldwide income.
Non-residents are subject to taxes in Canada on their
Canadian-sourced employment income and business income.
Canadian residency is
based on several factors including the number of days you
lived in Canada during the tax year (183 days or more) as
well as common law tests of residency relating to the
jurisdiction where you have the closest personal established
connection and ties to residential living.