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

Canada - Federal 2020 and 2019 Tax Brackets and Marginal Tax Rates

Income Tax Act s. 117, 117.1, 121

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

The Federal tax brackets and personal amount are increased for 2020 by an indexation factor of 1.019.  The indexation factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency information.

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

Federal Personal Income Tax Brackets and Tax Rates

2020 Taxable Income 2020 Marginal Tax Rates 2019 Taxable Income 2019 Marginal Tax Rates
Other
Income
Capital
Gains
Canadian Dividends Other
Income
Capital
Gains
Canadian Dividends
Eligible Non-Eligible Eligible Non-Eligible
first $48,535 15.00% 7.50% -0.03% 6.87% first $47,630 15.0% 7.50% -0.03% 6.87%
over $48,535 up to $97,069 20.50% 10.25% 7.56% 13.19% over $47,630 up to $95,259 20.5% 10.25% 7.56% 13.19%
over $97,069 up to $150,473 26.00% 13.00% 15.15% 19.52% over $95,259 up to $147,667 26.0% 13.00% 15.15% 19.52%
over $150,473 up to $214,368 29.22% 14.61% 19.59% 23.22% over $147,667 up to $210,371 29.0% 14.50% 19.29% 22.97%
over $214,368 33.00% 16.50% 24.81% 27.57% over $210,371 33.0% 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.

Federal Basic Personal Amount

2020 Personal Amount (1) 2020 Tax Rate 2019 Personal Amount 2019 Tax Rate
$13,229 15% $12,069 15%
(1) The 2020 personal amount is increased from $12,298 to $13,229 for taxpayers with net income of $150,473 or less.  For incomes above this threshold, the additional amount of $931 is reduced until it becomes zero at net income of $214,368.  The marginal tax rates above have been adjusted to reflect this change.

The Federal marginal rate for $150,473 to $214,368 is 29.22% because of the above-noted personal amount reduction through this tax bracket. The additional 0.22% is calculated as 15% x ($13,229 - $12,298) / ($214,368 - $150,473).

Copyright © 2002 Boat Harbour Investments Ltd.

Revised: October 09, 2020

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

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