Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Federal 2020 & 2021 Income Tax Rates TaxTips.ca
Canadian Tax and
Financial Information

If you use an ad blocker, please consider a small contribution to help keep TaxTips.ca free for everyone.

Need an accounting, tax or financial advisor? Look in our Directory.  Use above search box to easily find your topic!   Stay Connected with TaxTips.ca!
Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Financial Freedom
Financial Planning
RRSP RRIF TFSA
Real Estate
Investing
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Prov/Terr Budgets
Statistics etc.
Glossary
Site Map
Directory
Advertise With Us
Contact Us/About Us
Links & Resources
Canada  ->
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
Eligible Non-Eligible 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).

Copyright © 2002 Boat Harbour Investments Ltd.

Revised: October 23, 2021

 

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

Facebook  | Twitter  |  See What’s New, stay connected with TaxTips.ca by RSS or Email
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.