Canada Tax Rates & Brackets 2012 - 2013

With an ever growing supply of online tax programs it's easy to get confused and overwhelmed. One piece of advice for the wise is to stick with the top selling brands on the market like TurboTax and H&R Block to avoid unnecessary confusion and complications. Our Canadian tax rates table below can help you get a better picture of what your tax liability will be this tax season. The tax rate chart below is for preparing your taxes that are required to be filed in April

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Free Online Canadian Tax Preparation Online Income Tax Preparation and Filing brings an exciting change to the traditional method of tax preparation and filing by walking you step by step through the process to complete your return yourself.

What are the Canadian federal income tax rates in Canada?

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 to the law.

Tax Year:
Filing Status:

If your income tax bracket is between:

your tax rate is:

and

The calculator below will produce the first calculation that has to be made for page 2 of Schedule 1 in your tax package to help you calculate your NET federal tax. Page 1 is used to calculate federal non-refundable tax credits.

Canadian Federal Tax Rates for 2012

Provincial and Territorial Tax Rates, 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.

For 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.

Provincial Territories

Newfoundland and Labrador
Prince Edward Island
Nova Scotia
New Brunswick
Quebec
Ontario
Manitoba

Saskatchewan

Alberta
British Columbia
Yukon
Northwest Territories
Nunavut

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.

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