Tax Rates -> Current Marginal 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?
- 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 (still proposed legislation).
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).
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Revised: April 20, 2021
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