The Federal tax brackets and personal tax credit amounts are increased for 2023 by an indexation factor of 1.063 (a 6.3% 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 2023 have been confirmed to Canada Revenue Agency (CRA) information. See Indexation adjustment for personal income tax and benefit amounts on the CRA website.
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 | |||||||||
| 2023 Taxable Income(1) | Canada 2023 Marginal Tax Rates | 2022 Taxable Income(1) | Canada 2022 Marginal Tax Rates | ||||||
| Other Income |
Capital Gains |
Canadian Dividends | Other Income |
Capital Gains |
Canadian Dividends | ||||
| Eligible | Non-Eligible | Eligible | Non-Eligible | ||||||
| first $53,359 | 15.00% | 7.50% | -0.03% | 6.87% | first $50,197 | 15.00% | 7.50% | -0.03% | 6.87% |
| over $53,359 up to $106,717 | 20.50% | 10.25% | 7.56% | 13.19% | over $50,197 up to $100,392 | 20.50% | 10.25% | 7.56% | 13.19% |
| over $106,717 up to $165,430 | 26.00% | 13.00% | 15.15% | 19.52% | over $100,392 up to $155,625 | 26.00% | 13.00% | 15.15% | 19.52% |
| over $165,430 up to $235,675 | 29.32% | 14.66% | 19.73% | 23.34% | over $155,625 up to $221,708 | 29.38% | 14.69% | 19.81% | 23.41% |
| over $235,675 | 33.00% | 16.50% | 24.81% | 27.57% | over $221,708 | 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. |
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| TaxTips.ca Federal Basic Personal Amount |
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| 2023 Personal Amount (1) | 2023 Tax Rate | 2022 Personal Amount (1) | 2022 Tax Rate | ||||||
| $15,000 | 15% | $14,398 | 15% | ||||||
- 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.
- for 2022: from $12,719 to $14,398 for taxpayers with net income (line 23600) of $155,625 or less. For incomes above this threshold, the additional amount of $1,679 is reduced until it becomes zero at net income of $221,708.
The minimum personal amounts ($13,521 for 2023, $12,719 for 2022) are indexed.
The maximum personal amounts are stated in the Income Tax Act, but will be indexed after 2023. 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 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).
For 2022, the marginal rate for $155,625 to $221,708 is 29.38% because of the above-noted personal amount reduction through this tax bracket. The additional 0.38% is calculated as 15% x ($14,398 - $12,719) / ($221,708 - $155,625).