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Canada's Top Marginal Tax Rates by Province/Territory TaxTips.ca
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Canada
Tax Rates -> Current Marginal Tax Rates -> Canada Federal Personal Income Tax Brackets and Tax Rates

Top Marginal Tax Rates in Canada

There are 8 provinces with a top marginal tax rate exceeding 50%.  This differs from the average tax rate, which is always lower than the marginal tax rate.  The marginal tax rate is the rate of tax on the next dollar of income.  The average tax rate is total income tax divided by total income.

The province with the lowest top marginal tax rate is Saskatchewan, but the territories of Nunavut and Northwest Territories are lower.  The following table shows the top marginal tax rates in 2020 by province and territory.  Note that although Quebec's top marginal tax rate is now 25.75%, and the top federal tax rate is 33%, the top marginal tax rate for Quebec is only 53.31% instead of 58.75%, because of the federal tax abatement, which reduces the federal tax by 16.5% x the federal tax amount.

The table also shows the average tax rate for a taxpayer earning $100,000 of "other income".

Top Marginal Tax Rates by Province/Territory
  Top Rate Avg Rate
Other Income
@$100,000
Province/Territory Other
Income
Eligible
Dividends
Non-Eligible
Dividends
Nova Scotia 54.00% 41.58% 48.28% 29.15%
Ontario 53.53% 39.34% 47.74% 24.46%
British Columbia 53.50% 36.54% 48.89% 22.59%
Quebec 53.31% 40.10% 47.14% 30.51%
New Brunswick 53.30% 33.51% 47.75% 27.81%
Prince Edward Island 51.37% 34.22% 45.22% 28.60%
Newfoundland & Labrador 51.30% 42.61% 44.59% 27.80%
Manitoba 50.40% 37.78% 46.67% 28.34%
Alberta 48.00% 31.71% 42.31% 24.07%
Saskatchewan 47.50% 29.64% 40.37% 25.92%
Yukon 48.00% 28.93% 42.17% 22.95%
Northwest Territories 47.05% 28.33% 36.82% 22.02%
Nunavut 44.50% 33.08% 37.79% 19.62%

Top rates for capital gains are 50% of the top rates for other income, which includes interest, foreign dividends, employment income, etc.  The tax rates above do not include CPP or EI costs. Ontario Health Premium is included, as are Quebec health premiums. NT and NU include refundable cost of living credits.

The average tax rates above are calculated using the Detailed Canadian Tax Calculators.

You can check out marginal and average tax rates at varying levels of capital gains, eligible and non-eligible dividends, and other income using our Basic Canadian Tax Calculator.  It provides these rates plus a comparison of taxes payable by province/territory for the past 6 years.

Revised: April 26, 2020

 

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