How Canadian Income Tax Works (2024)
Canada has federal income tax plus provincial income tax, which are calculated separately and combined. Federal brackets range from 15% to 33%. Provincial rates vary significantly — Quebec is highest at up to 25.75%, while Alberta has a flat 10%.
| Federal rate | Income |
|---|---|
| 15% | $0–$55,867 |
| 20.5% | $55,868–$111,733 |
| 26% | $111,734–$154,906 |
| 29% | $154,907–$220,000 |
| 33% | Over $220,000 |
- →Basic Personal Amount of $15,705 gives a 15% non-refundable credit of $2,356
- →CPP contributions: 5.95% on earnings $3,500–$68,500 (max ~$3,867) — gives a 15% credit
- →EI premiums: 1.66% on insurable earnings up to $63,200 (max ~$1,049) — gives a 15% credit
- →Self-employed pay both employee and employer CPP (11.9%) but deduct half
- →RRSP contributions (up to 18% of prior year income, max $31,560) reduce taxable income
- →File by April 30 via NETFILE using TurboTax, Wealthsimple Tax, or UFile