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Tax Rates -> CurrentMarginal Tax Rates -> Canada Federal Personal Income Tax Brackets and TaxRates
The table below is sorted using the marginal tax rate for other income. The marginal tax rate differs from the average tax rate, which is always lower thanthe marginal tax rate. The marginal tax rate is the rate of tax on thenext dollar of income. The average taxrate is total income tax divided by total income.
There are only 2 provinces with a top marginal tax rate less than 50% for other income.
The province with the lowest top marginal tax rate is SK, but the territoriesof NU and NT are lower. The followingtable shows the top marginal tax rates in 2022 by province and territory.
BC has the lowest average tax rate for $100,000 of other income for theprovinces, followed by AB and ON.
The 2022 rates that differ from 2021 rates for other income, eligibledividends and non-eligibledividends are shaded in gray. The only change in the top rates for"other income" is NL, because they added 3 new high-income taxbrackets. The average rate for other income is alwaysslightly less in the current year than the prior year due to indexation, unlesstax rates change.
The table also shows the average taxrate for a taxpayer earning $100,000 of "other income", determinedusing the CanadianTax and RRSP Savings Calculator.
| 2022 Top Marginal Tax Rates by Province/Territory | ||||
| Top Rate | Avg Rate @$100K Other Inc | |||
| Province/ Territory | Other Income | Eligible Dividends | Non-Eligible Dividends | |
| NL | 54.80% | 46.20% | 48.96% | 27.20% |
| NS | 54.00% | 41.58% | 48.28% | 28.70% |
| ON | 53.53% | 39.34% | 47.74% | 23.70% |
| BC | 53.50% | 36.54% | 48.89% | 22.00% |
| QC | 53.31% | 40.10% | 48.70% | 29.90% |
| NB | 53.30% | 33.51% | 47.75% | 27.00% |
| PE | 51.37% | 34.22% | 47.05% | 28.00% |
| MB | 50.40% | 37.78% | 46.67% | 27.80% |
| AB | 48.00% | 34.31% | 42.31% | 23.60% |
| YT | 48.00% | 28.93% | 44.04% | 22.40% |
| SK | 47.50% | 29.64% | 41.82% | 25.40% |
| NT | 47.05% | 28.33% | 36.82% | 21.40% |
| NU | 44.50% | 33.08% | 37.79% | 19.10% |
Top rates for capital gains are 50% of the top rates for "otherincome". Other incomeincludes interest, foreign dividends, employment income, etc. The taxrates above do not include CPP or EI costs.Ontario Health Premium isincluded, as are Quebec health premiums. NT and NU include refundable cost ofliving credits. The average tax rates above are calculated using the DetailedCanadian Tax Calculators, which uses total income taxes divided byincome.What is Other Income?
How is the Average Tax Rate Calculated?
Check Out the Marginal and Average Tax Rates Yourself!
You can check out marginal and average tax rates at varying levels of capitalgains, eligible and non-eligible dividends, and other income using our BasicCanadian Tax Calculator. It provides these rates plus a comparison oftaxes payable by province/territory for the current year and past 5 years.You can also compare 2 different scenarios - change the province, the taxyear, or just the amounts of each type of income to see the difference intaxable income and taxes payable.
You can also see the marginal tax rates for all income brackets for yourprovince or territory in our Tax Rate Tables.
2022 Tax Comparisons
Compare provinces and territories at different levels of income.
2022 TaxComparisons Employment Income
BC, ON, and AB are the lowest tax provinces for a singleperson earning $80,000. See also comparisons for a single incomefamily with 2 children.
2022 TaxComparisons Eligible and Non-Eligible Dividends vs Interest
Taxes paid at varying levels of eligible and non-eligible dividendsand interest for all provinces and territories. The lowest-tax provincesfor $70K of eligible dividends are AB and BC.
2022Seniors Tax Comparisons Eligible Dividends vs Interest
Compare taxes paid in each province/territory by a senior with eligibledividends vs other income (foreign dividends, interest, etc.) - see how thetaxes (including OAS clawback) are significantly lower with eligible dividends.BC is the lowest tax province in these analyses.
Revised: August 16, 2022
