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Home  ->  Canada  ->  Personal Income Tax

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

Canada - Federal 2022 and 2021 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 2022 by an indexation factor of 1.024 (a 2.4% increase).

The federal indexation factors, tax brackets and tax rates 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, 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
2022 Taxable Income Canada 2022 Marginal Tax Rates 2021 Taxable Income Canada 2021 Marginal Tax Rates
Other
Income
Capital
Gains
Canadian Dividends Other
Income
Capital
Gains
Canadian Dividends
Eligible Non-Eligible Eligible Non-Eligible
first $50,197 15.00% 7.50% -0.03% 6.87% first $49,020 15.00% 7.50% -0.03% 6.87%
over $50,197 up to $100,392 20.50% 10.25% 7.56% 13.19% over $49,020 up to $98,040 20.50% 10.25% 7.56% 13.19%
over $100,392 up to $155,625 26.00% 13.00% 15.15% 19.52% over $98,040 up to $151,978 26.00% 13.00% 15.15% 19.52%
over $155,625 up to $221,708 29.38% 14.69% 19.81% 23.41% over $151,978 up to $216,511 29.32% 14.66% 19.73% 23.34%
over $221,708 33.00% 16.50% 24.81% 27.57% over $216,511 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
2022 Personal Amount (1) 2022 Tax Rate 2021 Personal Amount (1) 2021 Tax Rate
$14,398 15% $13,808 15%
(1) The personal amount is increased federally and for Yukon:

 - 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.

 - for 2021:  from $12,421 to $13,808 for taxpayers with net income (line 23600) 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.

The minimum personal amounts ($12,719 for 2022, $12,421 for 2021) 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 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).

For 2021, the marginal rate 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).

 

Copyright © 2002 Boat Harbour Investments Ltd.

Revised: September 03, 2022

 

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