Personal Income Tax -> Tax Rates -> 2020 and 2021 Tax Rates -> Canada Federal Personal Income Tax Brackets and Tax Rates

Canada - Federal 2021 and 2020 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 tax credit amounts are increased for 2021 by an indexation factor of 1.010.

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
2021 Taxable Income	2021 Marginal Tax Rates				2020 Taxable Income	2020 Marginal Tax Rates
	Other Income	Capital Gains	Canadian Dividends			Other Income	Capital Gains	Canadian Dividends
	Other Income	Capital Gains	Eligible	Non-Eligible		Other Income	Capital Gains	Eligible	Non-Eligible
first $49,020	15.00%	7.50%	-0.03%	6.87%	first $48,535	15.00%	7.50%	-0.03%	6.87%
over $49,020 up to $98,040	20.50%	10.25%	7.56%	13.19%	over $48,535 up to $97,069	20.50%	10.25%	7.56%	13.19%
over $98,040 up to $151,978	26.00%	13.00%	15.15%	19.52%	over $97,069 up to $150,473	26.00%	13.00%	15.15%	19.52%
over $151,978 up to $216,511(1)	29.32%	14.66%	19.73%	23.34%	over $150,473 up to $214,368(1)	29.22%	14.61%	19.59%	23.22%
over $216,511	33.00%	16.50%	24.81%	27.57%	over $214,368	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.
Federal Basic Personal Amount
2021 Personal Amount (1)	2021 Tax Rate				2020 Personal Amount (1)	2020 Tax Rate
$13,808	15%				$13,229	15%

(1) The personal amount is increased federally and for Yukon:

- for 2021: from $12,421 to $13,808 for taxpayers with net income of $151,978 or less. For incomes above this threshold, the additional amount of $1,387 is reduced until it becomes zero at net income of $216,511.

- for 2020: 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 minimum personal amount of $12,421 for 2021 ($12,298 for 2020) is indexed.

The maximum personal amount of $13,808 for 2021 ($13,229 for 2020) is stated in the Income Tax Act.

The marginal tax rates above have been adjusted to reflect this change. The table of marginal tax rates assume that net income is equal to taxable income for this purpose.

The Federal marginal rate for 2021 for $151,978 to $216,511 is 29.32% because of the above-noted personal amount reduction through this tax bracket. The additional 0.32% is calculated as 15% x ($13,808 - $12,421) / ($216,511 - $151,978).

For 2020, the 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).

Revised: October 26, 2023