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Tax Rates -> Personal Income Tax Rates for 2004 and 2005

Personal Income Tax Rates for Canada and Provinces/Territories for 2004 and 2005

1. Canadian income tax rates - federal personal income tax rates:

Canadian federal income tax is calculated based on taxable income, then non-refundable tax credits are deducted to determine the net amount payable. For 2005, every taxpayer can earn $8,148 (the basic personal amount) of taxable income before paying any federal tax.

The basic personal tax credit is calculated by multiplying the lowest tax rate by the basic personal amount.

The Department of Finance announced in November 2005 that the lowest federal tax rate would be reduced from 16% to 15%, and certain tax credits would be revised to compensate for the lower tax rates.

The tables on this page have not been revised for the rate reduction. See the revised 2005 tax rates on the Tax Rates 2005/2006 page.

The basic personal amount for each province and territory is listed below the tables of tax rates. This is the amount that can be earned before any provincial/territorial tax is paid.

Federal Personal Income Tax Rates (before Nov 2005 revision to 2005 rate)
2005 Taxable Income	2004 Taxable Income	Marginal Tax Rate
2005 Taxable Income	2004 Taxable Income	Other Income	Capital Gains	Canadian Dividends
first $35,595	first $35,000	16%	8.0%	3.33%
over $35,595 up to $71,190	over $35,000 up to $70,000	22%	11.0%	10.83%
over $71,190 up to $115,739	over $70,000 up to $113,804	26%	13.0%	15.83%
over $115,739	over $113,804	29%	14.5%	19.58%
Federal Basic Personal Amount (before Nov 2005 revision to 2005 rate)
2005	2004	Tax Rate
$8,148	$8,012	16%

The above federal rates are prior to the November 2005 announcement which reduced the 2005 lowest tax rate from 16% to 15%, and increased the 2005 basic personal amount to $8,648 from $8,148. See the Tax Rates 2005/2006 page for the revised 2005 tax rates and non-refundable tax credits.

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2. Combined Federal + Provincial Personal Income Tax Rates

Canadian federal and provincial/territorial income taxes are calculated separately, although on the same tax return, except for Quebec. The rates are combined here so that taxpayers can see the total tax rate being paid, including any provincial surtaxes.

The combined tax rates in these tables are marginal tax rates, including any provincial surtaxes. In the tables, "other income" includes income from employment, self-employment, interest from Canadian or foreign sources, foreign dividend income, etc.

After the income tax amounts are calculated, non-refundable tax credits are deducted from the tax payable. Non-refundable tax credits include the basic personal amount, which is available to every taxpayer. See the tables of non-refundable tax credits for more information, including federal and provincial/territorial credits.

The basic personal amount for each province and territory is listed below the tables of tax rates. This is the amount that can be earned before any provincial/territorial tax is paid.

Newfoundland & Labrador (NL) combined federal & provincial tax rates
2005 Taxable Income	2004 Taxable Income	Marginal Tax Rate (before Nov 2005 revision to 2005 federal rate)
2005 Taxable Income	2004 Taxable Income	Other Income	Capital Gains	Canadian Dividends
first $29,590	first $29,590	26.57%	13.29%	10.30%
over $29,590 up to $35,595	over $29,590 up to $35,000	32.16%	16.08%	17.28%
over $35,595 up to $58,597	over $35,000 up to $58,597	38.16%	19.08%	24.78%
over $58,597 up to $59,180	over $58,597 up to $59,180	39.61%	19.81%	26.04%
over $59,180 up to $71,190	over $59,180 up to $70,000	41.64%	20.82%	28.57%
over $71,190 up to $115,739	over $70,000 up to $113,804	45.64%	22.82%	33.57%
over $115,739	over $113,804	48.64%	24.32%	37.32%
NL Basic Personal Amount
2005	2004	Tax Rate
$7,410	$7,410	10.57%

NL has a surtax of 9% which is included in all of the above rates. The surtax applies when the NL income tax (after deducting non-refundable tax credits) exceeds $7,032. If provincial income tax payable after tax credits was $10,000, the surtax would be $267, or ($10,000 - $7,032) x 9%. For a single person with a tax credit for only the basic personal amount, the provincial income tax will reach $7,032 at a taxable income of $58,597 in 2005 or 2004.

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Prince Edward Island (PE) combined federal & provincial tax rates
2005 Taxable Income	2004 Taxable Income	Marginal Tax Rate (before Nov 2005 revision to 2005 federal rate)
2005 Taxable Income	2004 Taxable Income	Other Income	Capital Gains	Canadian Dividends
first $30,754	first $30,754	25.80%	12.90%	5.96%
over $30,754 up to $35,595	over $30,754 up to $35,000	29.80%	14.90%	10.96%
over $35,595 up to $51,858	over $35,000 up to $51,858	35.80%	17.90%	18.46%
over $51,858 up to $61,509	over $51,858 up to $61,509	37.18%	18.59%	19.22%
over $61,509 up to $71,190	over $61,509 up to $70,000	40.37%	20.19%	23.21%
over $71,190 up to $115,739	over $70,000 up to $113,804	44.37%	22.19%	28.21%
over $115,739	over $113,804	47.37%	23.69%	31.96%
PE Basic Personal Amount
2005	2004	Tax Rate
$7,412	$7,412	9.8%

PE has a surtax of 10% which is included in all the above rates. The surtax applies when the PE income tax (after deducting non-refundable tax credits) exceeds $5,200. If provincial income tax after tax credits was $10,000, the surtax would be $480, or ($10,000 - 5,200) x 10%. For a single person with a tax credit for only the basic personal amount, the provincial income tax will reach $5,200 at a taxable income of $51,858 in 2005 or 2004.

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Nova Scotia (NS) combined federal & provincial tax rates
2005 Taxable Income	2004 Taxable Income	Marginal Tax Rate (before Nov 2005 revision to 2005 federal rate)
2005 Taxable Income	2004 Taxable Income	Other Income	Capital Gains	Canadian Dividends
first $29,590	first $29,590	24.79%	12.40%	4.70%
over $29,590 up to $35,595	over $29,590 up to $35,000	30.95%	15.48%	12.40%
over $35,595 up to $59,180	over $35,000 up to $59,180	36.95%	18.48%	19.90%
over $59,180 up to $71,190	over $59,180 up to $70,000	38.67%	19.34%	22.05%
over $71,190 up to $80,840	over $70,000 up to $80,840	42.67%	21.34%	27.05%
over $80,840 up to $93,000	over $80,84 up to $93,000	44.34%	22.17%	28.17%
over $93,000 up to $115,739	over $93,000 up to $113,804	45.25%	22.63%	29.31%
over $115,739	over $113,804	48.25%	24.13%	33.06%
NS Basic Personal Amount
2005	2004	Tax Rate
$7,231	$7,231	8.79%

NS has a surtax of 10%, which is included in all the above rates. The surtax applies when the NS income tax (after deducting non-refundable tax credits) exceeds $10,000. If provincial income tax after tax credits was $12,000, the surtax would be $200, or ($12,000 - $10,000) x 10%. This surtax applies to both 2005 and 2004. For a single person with a tax credit for only the basic personal amount, the provincial income tax will reach $10,000 at a taxable income of $80,840 in 2005 and 2004.

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New Brunswick (NB) combined federal & provincial tax rates
2005 Taxable Income	2004 Taxable Income	Marginal Tax Rate (before Nov 2005 revision to 2005 federal rate)
2005 Taxable Income	2004 Taxable Income	Other Income	Capital Gains	Canadian Dividends
first $32,730	first $32,183	25.68%	12.84%	10.81%
over $32,730 up to $35,595	over $32,183 up to $35,000	30.82%	15.41%	17.23%
over $35,595 up to $65,462	over $35,000 up to $64,368	36.82%	18.41%	24.73%
over $65,462 up to $71,190	over $64,368 up to $70,000	38.52%	19.26%	26.86%
over $71,190 up to $106,427	over $70,000 up to $104,648	42.52%	21.26%	31.86%
over $106,427 up to $115,739	over $104,648 up to $113,804	43.84%	21.92%	33.51%
over $115,739	over $113,804	46.84%	23.42%	37.26%
NB Basic Personal Amount
2005	2004	Tax Rate
$7,888	$7,756	9.68%

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Quebec (QC) combined federal & provincial tax rates
2005 Taxable Income		2004 Taxable Income	Marginal Tax Rate (before Nov 2005 revision to 2005 federal rate)
2005 Taxable Income		2004 Taxable Income	Other Income	Capital Gains	Canadian Dividends
first $28,030		first $27,635	29.36%	14.68%	9.25%
over $28,030 up to $35,595		over $27,635 up to $35,000	33.36%	16.68%	14.25%
over $35,595 up to $56,070		over $35,000 up to $55,280	38.37%	19.19%	20.51%
over $56,070 up to $71,190		over $55,280 up to $70,000	42.37%	21.19%	25.51%
over $71,190 up to $115,739		over $70,000 up to $113,804	45.71%	22.86%	29.68%
over $115,739		over $113,804	48.22%	24.11%	32.81%
QC Basic Personal Amount
Tax System	2005	2004	Tax Rate
General	$6,365	$6,275	20%
Simplified	$9,330	$9,200	20%

Most Quebec taxpayers also get a federal tax abatement (reduction) of 16.5% of basic federal tax, which has been included in all of the above rates.

Unlike other provinces and territories, QC does not apply the lowest provincial tax rate (16%) to the basic personal amount in calculating the non-refundable tax credits.

The Simplified Tax System was eliminated for 2005. Previously, Quebec had two different tax systems for filing personal tax returns.

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Ontario (ON) combined federal & provincial tax rates
2005 Taxable Income	2004 Taxable Income	Marginal Tax Rate (before Nov 2005 revision to 2005 federal rate)
2005 Taxable Income	2004 Taxable Income	Other Income	Capital Gains	Canadian Dividends
first $34,010	first $33,375	22.05%	11.03%	4.48%
over $34,010 up to $35,595	over $33,375 up to $35,000	25.15%	12.58%	8.36%
over $35,595 up to $59,880	over $35,000 up to $58,771	31.15%	15.58%	15.86%
over $59,880 up to $68,020	over $58,771 up to $66,752	32.98%	16.49%	16.86%
over $68,020 up to $70,560	over $66,752 up to $69,240	35.39%	17.70%	19.88%
over $70,560 up to $71,190	over $69,240 up to $70,000	39.41%	19.70%	22.59%
over $71,190 up to $115,739	over $70,000 up to $113,804	43.41%	21.70%	27.59%
over $115,739	over $113,804	46.41%	23.20%	31.34%
ON Basic Personal Amount
2005	2004	Tax Rate
$8,196	$8,044	6.05%

ON has two surtaxes, which are included in the above tax rates:
1. a surtax of 20% of ON income tax (after deducting non-refundable tax credits) in excess of $3,929 in 2005 ($3,856 in 2004). For a single person with a tax credit for only the basic personal amount, the ON tax will reach $3,929 at a taxable income of $59,880 in 2005 and will reach $3,856 at a taxable income of $58,771 in 2004.
2. a surtax of 36% of ON income tax (after deducting non-refundable tax credits) in excess of $4,957 in 2005 ($4,864 in 2004). For a single person with a tax credit for only the basic personal amount, the ON tax will reach $4,957 at a taxable income of $70,560 in 2005 and will reach $4,864 at a taxable income of $69,240 in 2004.

Note that the second surtax of 36% of ON income tax is in addition to the first surtax of 20%. The surtax of 20% applies to ON income tax in excess of $3,929 but less than $4,957, and both surtaxes, for a total of 56%, apply to ON income tax in excess of $4,957.

Ontario Health Premium

Beginning July 1, 2004, the Ontario government started collecting, through the income tax system, an Ontario Health Premium that is based on an individual's taxable income.

Marginal tax rates above do not include the Ontario Health Premium, which increases the above rates by up to 1.2%

Ontario Health Premium
Taxable Income	2005 and Later Tax Years	2004 Tax Year
first $20,000	no premium	no premium
over $20,000 up to $25,000	(taxable income - $20,000) x 6%	(taxable income - $20,000) x 3%
over $25,000 up to $36,000	$300	$150
over $36,000 up to $38,500	$300 + (taxable income - $36,000) x 6%	$150 + (taxable income - $36,000) x 3%
over $38,500 up to $48,000	$450	$225
over $48,000 up to $48,600	$450 + (taxable income - $48,000) x 25%	$225 + (taxable income - $48,000) x 12.5%
over $48,600 up to $72,000	$600	$300
over $72,000 up to $72,600	$600 + (taxable income - $72,000) x 25%	$300 + (taxable income - $72,000) x 12.5%
over $72,600 up to $200,000	$750	$375
over $200,000 up to $200,600	$750 + (taxable income - $200,000) x 25%	$375 + (taxable income - $200,000) x 12.5%
over $200,600	$900	$450

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Manitoba (MB) combined federal & provincial tax rates
2005 Taxable Income	2004 Taxable Income	Marginal Tax Rate (before Nov 2005 revision to 2005 federal rate)
2005 Taxable Income	2004 Taxable Income	Other Income	Capital Gains	Canadian Dividends
first $30,544	first $30,544	26.9%	13.5%	10.71%
over $30,544 up to $35,595	over $30,544 up to $35,000	30.0%	15.0%	14.58%
over $35,595 up to $65,000	over $35,000 up to $65,000	36.0%	18%	22.08%
over $65,000 up to $71,190	over $65,000 up to $70,000	39.4%	19.7%	26.33%
over $71,190 up to $115,739	over $70,000 up to $113,804	43.4%	21.7%	31.33%
over $115,739	over $113,804	46.4%	23.2%	35.08%
MB Basic Personal Amount
2005	2004	Tax Rate
$7,634	$7,634	10.9%

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Saskatchewan (SK) combined federal & provincial tax rates
2005 Taxable Income	2004 Taxable Income	Marginal Tax Rate (before Nov 2005 revision to 2005 federal rate)
2005 Taxable Income	2004 Taxable Income	Other Income	Capital Gains	Canadian Dividends
first $35,595	first $35,000	27%	13.5%	7.08%
over $35,595 up to $36,770	over $35,000 up to $36,155	33%	16.5%	14.58%
over $36,770 up to $71,190	over $36,155 up to $70,000	35%	17.5%	17.08%
over $71,190 up to $105,056	over $70,000 up to $103,300	39%	19.5%	22.08%
over $105,056 up to $115,739	over $103,300 up to $113,804	41%	20.5%	24.58%
over $115,739	over $113,804	44%	22.0%	28.33%
SK Basic Personal Amount
2005	2004	Tax Rate
$8,404	$8,264	11%

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Alberta (AB) combined federal & provincial tax rates
2005 Taxable Income	2004 Taxable Income	Marginal Tax Rate (before Nov 2005 revision to 2005 federal rate)
2005 Taxable Income	2004 Taxable Income	Other Income	Capital Gains	Canadian Dividends
first $35,595	first $35,000	26%	13%	7.83%
over $35,595 up to $71,190	over $35,000 up to $70,000	32%	16%	15.33%
over $71,190 up to $115,739	over $70,000 up to $113,804	36%	18%	20.33%
over $115,739	over $113,804	39%	19.5%	24.08%
AB Basic Personal Amount
2005	2004	Tax Rate
$14,523	$14,337	10%

Alberta Tax-free Resource Rebate

In January 2006 qualified Albertans received a tax-free payment of $400. In order to qualify:

	must have been resident of Alberta on September 1, 2005
	must have filed a 2004 income tax return
	families with children must be registered for the Canada Child Tax Benefit

There was a deadline of December 31, 2006 for filing the 2004 tax return or registering for the Canada Child Tax Benefit in order to qualify for the rebate.

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British Columbia (BC) combined federal & provincial tax rates
2005 Taxable Income	2004 Taxable Income	Marginal Tax Rate (before Nov 2005 revision to 2005 federal rate)
2005 Taxable Income	2004 Taxable Income	Other Income	Capital Gains	Canadian Dividends
first $33,061	first $32,476	22.05%	11.03%	4.52%
over $33,061 up to $35,595	over $32,476 up to $35,000	25.15%	12.58%	8.40%
over $35,595 up to $66,123	over $35,000 up to $64,954	31.15%	15.58%	15.90%
over $66,123 up to $71,190	over $64,954 up to $70,000	33.70%	16.85%	19.08%
over $71,190 up to $75,917	over $70,000 up to $74,575	37.70%	18.85%	24.08%
over $75,917 up to $92,185	over $74,575 up to $90,555	39.70%	19.85%	26.58%
over $92,185 up to $115,739	over $90,555 up to $113,804	40.70%	20.35%	27.83%
over $115,739	over $113,804	43.70%	21.85%	31.58%
BC Basic Personal Amount
2005	2004	Tax Rate
$8,676	$8,523	6.05%

BC Tax Reduction:

Beginning with the 2005 tax year, individuals with net income for tax purposes of $16,000 or less will get a provincial non-refundable tax credit of $360. The credit will be reduced by 3.6% of income over $16,000, being reduced to zero at income of $26,000.

British Columbia Medical Services Plan

BC charges a Medical Services Plan (MSP) premium. There is premium assistance available, based on adjusted net income for the 2 preceding tax years for an individual or couple, but the premium is not collected through the income tax system. The premium for many employees is paid, in part or in full, by their employers directly to the government. Non-employees are billed directly by MSP.

Adjusted net income is calculated by taking combined net income for the previous tax year, and making the following deductions:

Spouse	$3,000
65 yrs of age or older	$3,000
Spouse 65 yrs of age or older	$3,000
Children - amount per child - this deduction is reduced by 50% of child care expenses claimed on either spouse's tax return	$3,000
Disability - for each disabled person	$3,000

Thus, a couple who are both over 65 years of age would qualify for reduced premiums with combined net income before adjustments of $33,000 or less ($37,000 or less as at July 1, 2005).

BC Medical Services Plan Annual Premiums
Adjusted Net Income (individual or couple)		One Person	Family of 2	Family of 3 or More
Current Levels	Levels as of July 1, 2005	One Person	Family of 2	Family of 3 or More
first $16,000	first $20,000	no premium	no premium	no premium
over $16,000 up to $18,000	over $20,000 up to $22,000	$129.60	$230.40	$259.20
over $18,000 up to $20,000	over $22,000 up to $24,000	$259.20	$460.80	$518.40
over $20,000 up to $22,000	over $24,000 up to $26,000	$388.80	$691.20	$777.60
over $22,000 up to $24,000	over $26,000 up to $28,000	$518.40	$921.60	$1,036.80
over $24,000	over $28,000	$648.00	$1,152.00	$1,296.00

The Feb 15, 2005 BC Budget announced increased thresholds for Medical Services Plan premium assistance, effective July 1, 2005.

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Yukon (YT) combined federal & territorial tax rates
2005 Taxable Income	2004 Taxable Income	Marginal Tax Rate (before Nov 2005 revision to 2005 federal rate)
2005 Taxable Income	2004 Taxable Income	Other Income	Capital Gains	Canadian Dividends
first $35,595	first $35,000	23.04%	11.52%	4.76%
over $35,595 up to $71,190	over $35,000 up to $70,000	31.68%	15.84%	15.56%
over $71,190 up to $76,628	over $70,000 up to $76,224	37.44%	18.72%	22.76%
over $76,628 up to $115,739	over $76,224 up to $113,804	38.01%	19.01%	23.10%
over $115,739	over $113,804	42.40%	21.20%	28.59%
YT Basic Personal Amount
2005	2004	Tax Rate
$8,148	$8,012	7.04%

YT has a surtax of 5%, which is included in the above rates. The surtax applies when the YT income tax (after deducting non-refundable tax credits) exceeds $6,000. If YT income tax after tax credits was $8,000, the surtax would be $100, or ($8,000 - 6,000) x 5%. This surtax applies to both 2005 and 2004. For a single person with a tax credit for only the basic personal amount, the YT income tax will reach $6,000 at a taxable income of approximately $76,630 in 2005 ($76,220 in 2004).

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Northwest Territories (NT combined federal & territorial tax rates)
2005				2004
Taxable Income	Marginal Tax Rate (before Nov 2005 revision to 2005 federal rate)			Taxable Income	Marginal Tax Rate
Taxable Income	Other Income	Capital Gains	Canadian Dividends	Taxable Income	Other Income	Capital Gains	Canadian Dividends
first $33,811	21.9%	10.95%	3.33%	first $33,245	23.2%	11.60%	4.83%
over $33,811 up to 35,595	24.6%	12.30%	6.58%	over $33,245 up to 35,000	25.9%	12.95%	8.21%
over $35,595 up to $67,622	30.6%	15.30%	14.08%	over $35,000 up to $66,492	31.9%	15.95%	15.71%
over $67,622 up to $71,190	34.2%	17.10%	18.58%	over $66,492 up to $70,000	33.95%⁽¹⁾	16.98%⁽¹⁾	18.27%⁽¹⁾
over $71,190 up to $109,939	38.2%	19.10%	23.58%	over $70,000 up to $108,101	37.95%⁽¹⁾	18.98%⁽¹⁾	23.27%⁽¹⁾
over $109,939 up to $115,739	40.05%	20.03%	25.90%	over $108,101 up to $113,804	39.55%⁽²⁾	19.78%⁽²⁾	25.27%⁽²⁾
over $115,739	43.05%	21.53%	29.65%	over $113,804	42.55%⁽²⁾	21.28%⁽²⁾	29.02%⁽²⁾
NT Basic Personal Amount
2005	Tax Rate			2004	Tax Rate
$11,609	5.9%			$11,415	7.2%

Notes (1) and (2) These are the effective rates for 2004 after the July 1, 2004 increases in the following NT tax brackets:
(1) over $66,492 up to $108,101 increased from 11.7% to 12.2%
(2) over $108,101 increased from 13.05% to 14.05%

Nunavut (NU) combined federal & territorial tax rates
2005 Taxable Income	2004 Taxable Income	Marginal Tax Rate (before Nov 2005 revision to 2005 federal rate)
2005 Taxable Income	2004 Taxable Income	Other Income	Capital Gains	Canadian Dividends
first $35,595	first $35,000	20%	10.0%	3.33
over $35,595 up to $71,190	over $35,000 up to $70,000	29%	14.5%	14.58%
over $71,190 up to $115,739	over $70,000 up to $113,804	35%	17.5%	22.08%
over $115,739	over $113,804	40.5%	20.3%	28.96%
NU Basic Personal Amount
2005	2004	Tax Rate
$10,674	$10,495	4%

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Revised: October 26, 2023

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