We often get question from our clients: “what is my 2014 tax brackets?”
In Canada, we have marginal tax rate applicable to individual tax payers. This means the higher income you have you will have to pay more taxes. While filing your 2014 tax return, many of the low income earning families won’t pay any taxes up to an income of $26,786, versus a higher income family would pay 42.18% of taxes in Ontario. Therefore, medium to high income earning families such as dentists, doctors, professional engineers, IT consultants etc. in Canada especially in Ontario should take the opportunity of tax planning. Planning your taxes reminds me an old saying: “Prevention is better than cure”. If you wait till the last moment (at filing your tax returns), there are very few things you can do to minimize of defer your tax burden. Whereas taking the correct steps on time would give you the peace of mind of staying on top. To learn more about the tax planning in Canada, you may contact Mostafa Mohsin CPA, CGA | Chartered Professional Accountant expert in owner managed business and high income earners tax planning in Ontario and most of other provinces and territories in Canada.
Federal tax rates for 2014
- 15% on the first $43,953 of taxable income, +
- 22% on the next $43,954 of taxable income (on the portion of taxable income over $43,953 up to $87,907),+
- 26% on the next $48,363 of taxable income (on the portion of taxable income over $87,907 up to $136,270), +
- 29% of taxable income over $136,270.
Provincial/territorial tax rates for 2014
Tax for all provinces (except Quebec) and territories is calculated the same way as federal tax.
Form 428 is used to calculate this provincial or territorial tax. Provincial or territorial specific non-refundable tax credits are also calculated on Form 428.
| Provincial/territorial tax rates (combined chart) | |
| Provinces/territories | Rate(s) |
| Newfoundland and Labrador | 7.7% on the first $34,254 of taxable income, + 12.5% on the next $34,254, + 13.3% on the amount over $68,508 |
| Prince Edward Island | 9.8% on the first $31,984 of taxable income, + 13.8% on the next $31,985, + 16.7% on the amount over $63,969 |
| Nova Scotia | 8.79% on the first $29,590 of taxable income, + 14.95% on the next $29,590, + 16.67% on the next $33,820, + 17.5% on the next $57,000, + 21% on the amount over $150,000 |
| New Brunswick | 9.68% on the first $39,305 of taxable income, + 14.82% on the next $39,304, + 16.52% on the next $49,193, + 17.84% on the amount over $127,802 |
| Quebec | Go to Income tax rates (Revenu Québec Web site). |
| Ontario | 5.05% on the first $40,120 of taxable income, + 9.15% on the next $40,122, + 11.16% on the next $69,758, + 12.16% on the next $70,000, + 13.16 % on the amount over $220,000 |
| Manitoba | 10.8% on the first $31,000 of taxable income, + 12.75% on the next $36,000, + 17.4% on the amount over $67,000 |
| Saskatchewan | 11% on the first $43,292 of taxable income, + 13% on the next $80,400, + 15% on the amount over $123,692 |
| Alberta | 10% of taxable income |
| British Columbia | 5.06% on the first $37,606 of taxable income, + 7.7% on the next $37,607, + 10.5% on the next $11,141, + 12.29% on the next $18,504, + 14.7% on the next $45,142, + 16.8% on the amount over $150,000 |
| Yukon | 7.04% on the first $43,953 of taxable income, + 9.68% on the next $43,954, + 11.44% on the next $48,363, + 12.76% on the amount over $136,270 |
| Northwest Territories | 5.9% on the first $39,808 of taxable income, + 8.6% on the next $39,810, + 12.2% on the next $49,823, + 14.05% on the amount over $129,441 |
| Nunavut | 4% on the first $41,909 of taxable income, + 7% on the next $41,909, + 9% on the next $52,452, + 11.5% on the amount over $136,270 |
Source: http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html