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Personal Income Tax   ->   Tax Rates   ->   2015 & 2016 Tax Rates  -> Canada Federal 2015 & 2016 Income Tax Brackets and Tax Rates

Canada - Federal 2015 and 2016 Tax Brackets and Marginal Tax Rates

The Federal tax rates for 2016 are as per Bill C-2 tabled in December 2015.  The Federal tax brackets and personal amount were increased for 2016 by an indexation factor of 1.013.  The indexation factors and, tax brackets and tax rates have been confirmed to Canada Revenue Agency information.

With the reduction of the tax rate from 22% to 20.5% in 2016, increased taxes will not be incurred in 2016 over 2015 until total taxable income (depending on type of income) reaches about $225,000.

Please read the article Understanding the Tables of Personal Income Tax Rates.

Federal Personal Income Tax Brackets and Tax Rates
2016 Taxable Income 2016 Marginal Tax Rates 2015 Taxable Income 2015 Marginal Tax Rates
Other
Income		 Capital
Gains		 Canadian Dividends Other
Income		 Capital
Gains		 Canadian Dividends
Eligible Non-Eligible Eligible Non-Eligible
first $45,282 15.0% 7.50% -0.03% 5.24% first $44,701 15% 7.5% -0.03% 4.70%
over $45,282 up to $90,563 20.5% 10.25% 7.56% 11.67% over $44,701 up to $89,401 22% 11.0% 9.63% 12.96%
over $90,563 up to $140,388 26.0% 13.00% 15.15% 18.11% over $89,401 up to $138,586 26% 13.0% 15.15% 17.68%
over $140,388 up to $200,000 29.0% 14.50% 19.29% 21.62% over $138,586 29% 14.5% 19.29% 21.22%
over $200,000 33.0% 16.50% 24.81% 26.30%  
Marginal tax rate for dividends is a % of actual dividends received (not grossed-up 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 17% in 2016, 18% in 2015.
For more information see dividend tax credits.

Federal Basic Personal Amount
2016 Personal Amount 2016 Tax Rate 2015 Personal Amount 2015 Tax Rate
$11,474 15% $11,327 15%

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Revised: May 19, 2025

 

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