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Home  ->  Personal Income Tax

Tax Rates   ->   Current Marginal Tax Rates -> Canada Personal Income Tax Brackets and Tax Rates

Canada 2024 and 2023 Tax Rates & Tax Brackets

Income Tax Act s. 117, 117.1, 121

The Federal tax brackets and personal tax credit amounts are increased for 2024 by an indexation factor of 1.047 (a 4.7% increase).

See Indexation of the Personal Income Tax System for how the indexation factors are calculated.

The federal indexation factors, tax brackets and tax rates for 2024 have been confirmed to Canada Revenue Agency (CRA) information.

In order to determine the total tax rate paid in your province or territory, see the combined marginal tax rates for your province or territory.  If you are not a resident of Canada, see Who Pays Tax in Canada and on What Income?

Tax Tip: read the article Understanding the Tables of Personal Income Tax Rates, especially if you are trying to compare the rates below to the marginal tax rates in the Basic Tax Calculator or the Detailed Tax Calculators.

TaxTips.ca - Canadian Tax Rates - Federal
2024 Taxable Income(1) Canada 2024 Marginal Tax Rates 2023 Taxable Income(1) Canada 2023 Marginal Tax Rates
Other
Income
Capital
Gains
Canadian Dividends Other
Income
Capital
Gains
Canadian Dividends
Eligible Non-Eligible Eligible Non-Eligible
first $55,867 15.00% 7.50% -0.03% 6.87% first $53,359 15.00% 7.50% -0.03% 6.87%
over $55,867 up to $111,733 20.50% 10.25% 7.56% 13.19% over $53,359 up to $106,717 20.50% 10.25% 7.56% 13.19%
over $111,733 up to $173,205 26.00% 13.00% 15.15% 19.52% over $106,717 up to $165,430 26.00% 13.00% 15.15% 19.52%
over $173,205 up to $246,752 29.32% 14.66% 19.73% 23.34% over $165,430 up to $235,675 29.32% 14.66% 19.73% 23.34%
over $246,752 33.00% 16.50% 24.81% 27.57% over $235,675 33.00% 16.50% 24.81% 27.57%
Marginal tax rate for dividends is a % of actual dividends received (not grossed-up taxable amount).
Marginal tax rate for capital gains is a % of total capital gains (not taxable capital gains).
Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is 15%.
For more information see dividend tax credits.
Copyright © 2002 Boat Harbour Investments Ltd.
TaxTips.ca
Federal Basic Personal Amount
2024 Personal Amounts (1) 2024 Tax Rate 2023 Personal Amounts (1) 2023 Tax Rate
Minimum $14,156 15% Minimum $13,520 15%
Maximum 15,705 15% Maximum 15,000 15%
(1) The personal amount for 2023 and 2024 is increased federally and for Yukon:

 - for 2024:  from $14,156 to $15,705 for taxpayers with net income (line 23600) of $173,205 or less.  For incomes above this threshold, the additional amount of $1,549 is reduced until it becomes zero at net income of $246,752.

 - for 2023:  from $13,521 to $15,000 for taxpayers with net income (line 23600) of $165,430 or less.  For incomes above this threshold, the additional amount of $1,479 is reduced until it becomes zero at net income of $235,675.

The minimum and maximum personal amounts for 2024 are indexed from the 2023 amounts. See Enhanced Basic Personal Amount.

The marginal tax rates in blue above have been adjusted to reflect these changes. The table of marginal tax rates assume that line 23600 net income is equal to taxable income for this purpose.

For 2024, the marginal rate for $173,205 to $246,752 is 29.32% because of the above-noted personal amount reduction through this tax bracket. The additional 0.32% is calculated as 15% x ($15,705 - $14,156) / ($246,752 - $173,205).

For 2023, the marginal rate for $165,430 to $235,675 is 29.32% because of the above-noted personal amount reduction through this tax bracket. The additional 0.32% is calculated as 15% x ($15,000 - $13,520) / ($235,675 - $165,430).

Since the minimum and maximum amounts are being indexed at the same rate for 2024 and later years, the marginal tax rate for the 4th tax bracket will remain at 29.32% in later years.

Copyright © 2002 Boat Harbour Investments Ltd.

Revised: January 23, 2024

 

Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from TaxTips.ca

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