Canadian Marginal Tax Rates – 2014


This post provides the 2014 combined tax rates as tables and charts for the Canadian federal government and all the provinces and territories. The Marginal Tax Rate is mentioned a lot when discussing retirement income. It is defined as the amount of tax paid on an additional dollar of income. It is sometimes difficult to determine this value as it changes by province. This post shows the marginal and average rates for each tax bracket and provides a downloadable spreadsheet which also contains the charts for each province.

The latest tax rates are available by clicking on Canadian Marginal Taxes Rates – 2020.

Combined Federal & Provincial Tax Brackets

The federal government has 4 tax brackets. Provinces have from 3 to 5 which rarely match the federal brackets. Because the highest bracket is normally shared, this results is between 6 and 8 tax brackets. Thus, income differences and the marginal rate between brackets sometimes are not too great.

There is also significant differences between each province. They each have different tax brackets and marginal tax rates. Using a standard rate without regard to your province of residence can lead to erroneous results if you are not careful. For example, the combined federal and provincial first tax brackets are given in the chart below, by province. The blue bars are the maximum income for the bracket and the red percentages are the rate each dollar is taxed at. Notice that the % values range from 19% to 31% for the first $30,000 to $45,000.

The information provided below is also in an Excel spreadsheet which you can download. Please click on Download Spreadsheet now and open it if you want to use it. The spreadsheet also contains charts for each province, similar to this one for Manitoba.

The blue line is the marginal tax rate while the red line is the average. Notice that while there is a considerable difference between the % along the Y-axis between the marginal and average rates, the average increases almost linearly once the first tax bracket has been exceeded.

The way to interpret the charts and the tables below is to determine what your total taxable income (line 260 of the Federal T1 General form) will be for your province without the new income being considered. Then go to the Fed+Province column and note the %. This is the marginal tax rate that any new income will incur. Also examine if the new income pushes the total income into the next tax bracket. If it does, the amount that exceeds the start of the bracket will be taxed at the bracket’s rate.

Examine the ‘From’ and ‘To’ values carefully or use the values on the x-axis of the charts (note that they are spaced by value). To make it easier to see the difference between each tax bracket, the $ Diff and % Diff columns show the difference between tax brackets. Some differences are small because of the interspersing of federal and provincial brackets. The Source column indicates which jurisdiction is responsible for the tax bracket. The End Tax column is the total taxes to be paid when the income reaches the To value. The End Tax is then divided by the To income to generate the Average tax rate. The average is shown on the charts and it is continuous, unlike the Marginal Tax Rate which is flat between the tax brackets.

Find the province you want by scrolling down. They are in alphabetic order. Find your total taxable income in the From & To columns. Use the combined rate in the Fed+Province (provinces are given by their postal abbreviation) column which will be the Marginal Tax Rate.

Alberta
Source From To Federal AB Fed+AB $ Diff % Diff End Tax Average
Fed&AB 0 43,953 15.00% 10.00% 25.00% 43,953 25.00% 10,988 25.00%
Fed&AB 43,954 87,907 22.00% 10.00% 32.00% 43,953 7.00% 25,053 28.50%
Fed&AB 87,908 136,270 26.00% 10.00% 36.00% 48,362 4.00% 42,464 31.16%
136,271 235,000 29.00% 10.00% 39.00% 98,729 3.00% 80,968 34.45%
British Columbia
Source From To Federal BC Fed+BC $ Diff % Diff End Tax Average
BC 0 37,606 15.00% 5.06% 20.06% 37,606 20.06% 7,544 20.06%
Fed 37,607 43,953 15.00% 7.70% 22.70% 6,346 2.64% 8,984 20.44%
BC 43,954 75,213 22.00% 7.70% 29.70% 31,259 7.00% 18,268 24.29%
BC 75,214 86,354 22.00% 10.50% 32.50% 11,140 2.80% 21,889 25.35%
Fed 86,355 87,907 22.00% 12.29% 34.29% 1,552 1.79% 22,421 25.51%
BC 87,908 104,858 26.00% 12.29% 38.29% 16,950 4.00% 28,911 27.57%
Fed 104,859 136,270 26.00% 14.70% 40.70% 31,411 2.41% 41,695 30.60%
BC 136,271 150,000 29.00% 14.70% 43.70% 13,729 3.00% 47,695 31.80%
150,001 235,000 29.00% 16.80% 45.80% 84,999 2.10% 86,624 36.86%
Manitoba
Source From To Federal MB Fed+MB $ Diff % Diff End Tax Average
MB 0 31,000 15.00% 10.80% 25.80% 31,000 25.80% 7,998 25.80%
Fed 31,001 43,953 15.00% 12.75% 27.75% 12,952 1.95% 11,592 26.37%
MB 43,954 67,000 26.00% 12.75% 38.75% 23,046 11.00% 20,523 30.63%
Fed 67,001 87,907 22.00% 17.40% 39.40% 20,906 0.65% 28,759 32.72%
Fed 87,908 136,270 26.00% 17.40% 43.40% 48,362 4.00% 49,749 36.51%
136,271 235,000 29.00% 17.40% 46.40% 98,729 3.00% 95,559 40.66%
New Brunswick
Source From To Federal NB Fed+NB $ Diff % Diff End Tax Average
NB 0 39,305 15.00% 9.69% 24.69% 39,305 24.69% 9,704 24.69%
Fed 39,306 43,953 15.00% 14.82% 29.82% 4,647 5.13% 11,090 25.23%
NB 43,954 78,609 22.00% 14.82% 36.82% 34,655 7.00% 23,850 30.34%
Fed 78,610 87,907 22.00% 16.52% 38.52% 9,297 1.70% 27,431 31.20%
NB 87,908 127,802 26.00% 16.52% 42.52% 39,894 4.00% 44,394 34.74%
Fed 127,803 136,270 26.00% 17.84% 43.84% 8,467 1.32% 48,106 35.30%
136,271 235,000 29.00% 17.84% 46.84% 98,729 3.00% 94,351 40.15%
Newfoundland and Labrador
Source From To Federal NL Fed+NL $ Diff % Diff End Tax Average
NL 0 34,254 15.00% 7.70% 22.70% 34,254 22.70% 7,776 22.70%
Fed 34,255 43,953 15.00% 12.50% 27.50% 9,698 4.80% 10,443 23.76%
NL 43,954 68,508 22.00% 12.50% 34.50% 24,554 7.00% 18,914 27.61%
Fed 68,509 87,907 22.00% 13.30% 35.30% 19,398 0.80% 25,761 29.31%
Fed 87,908 136,270 26.00% 13.30% 39.30% 48,362 4.00% 44,768 32.85%
136,271 235,000 29.00% 13.30% 42.30% 98,729 3.00% 86,530 36.82%
Nova Scotia
Source From To Federal NS Fed+NS $ Diff % Diff End Tax Average
NS 0 29,590 15.00% 8.79% 23.79% 29,590 23.79% 7,039 23.79%
Fed 29,591 43,953 15.00% 14.95% 29.95% 14,362 6.16% 11,341 25.80%
NS 43,954 59,180 22.00% 14.95% 36.95% 15,226 7.00% 16,967 28.67%
Fed 59,181 87,907 22.00% 16.67% 38.67% 28,726 1.72% 28,075 31.94%
NS 87,908 93,000 26.00% 16.67% 42.67% 5,092 4.00% 30,248 32.52%
Fed 93,001 136,270 26.00% 17.50% 43.50% 43,269 0.83% 49,070 36.01%
NS 136,271 150,000 29.00% 17.50% 46.50% 13,729 3.00% 55,454 36.97%
150,001 235,000 29.00% 21.00% 50.00% 84,999 3.50% 97,954 41.68%
Northwest Territories
Source From To Federal NT Fed+NT $ Diff % Diff End Tax Average
NT 0 39,808 15.00% 5.90% 20.90% 39,808 20.90% 8,320 20.90%
Fed 39,809 43,953 15.00% 8.60% 23.60% 4,144 2.70% 9,298 21.15%
NT 43,954 79,618 22.00% 8.60% 30.60% 35,664 7.00% 20,211 25.39%
Fed 79,619 87,907 22.00% 12.20% 34.20% 8,288 3.60% 23,046 26.22%
NT 87,908 129,441 26.00% 12.20% 38.20% 41,533 4.00% 38,911 30.06%
Fed 129,442 136,270 26.00% 14.05% 40.05% 6,828 1.85% 41,646 30.56%
136,271 235,000 29.00% 14.05% 43.05% 98,729 3.00% 84,149 35.81%
Nunavut
Source From To Federal NU Fed+NU $ Diff % Diff End Tax Average
NU 0 41,909 15.00% 4.00% 19.00% 41,909 19.00% 7,963 19.00%
Fed 41,910 43,953 15.00% 7.00% 22.00% 2,043 3.00% 8,412 19.14%
NU 43,954 83,818 22.00% 7.00% 29.00% 39,864 7.00% 19,973 23.83%
Fed 83,819 87,907 22.00% 9.00% 31.00% 4,088 2.00% 21,240 24.16%
Fed&NU 87,908 136,270 26.00% 11.50% 37.50% 48,362 6.50% 39,376 28.90%
136,271 235,000 29.00% 11.50% 40.50% 98,729 3.00% 79,361 33.77%
Ontario
Source From To Federal ON Fed+ON $ Diff % Diff End Tax Average
ON 0 40,120 15.00% 5.05% 20.05% 40,120 20.05% 8,044 20.05%
Fed 40,121 43,953 15.00% 9.15% 24.15% 3,832 4.10% 8,969 20.41%
ON 43,954 80,242 22.00% 9.15% 31.15% 36,288 7.00% 20,273 25.27%
Fed 80,243 87,907 22.00% 11.16% 33.16% 7,664 2.01% 22,815 25.95%
Fed 87,908 136,270 26.00% 11.16% 37.16% 48,362 4.00% 40,786 29.93%
ON 136,271 150,000 29.00% 11.16% 40.16% 13,729 3.00% 46,299 30.87%
ON 150,001 222,000 29.00% 12.16% 41.16% 71,999 1.00% 75,934 34.20%
222,001 235,000 29.00% 13.16% 42.16% 12,999 1.00% 81,415 34.64%
Prince Edward Island
Source From To Federal PE Fed+PE $ Diff % Diff End Tax Average
PE 0 31,984 15.00% 9.80% 24.80% 31,984 24.80% 7,932 24.80%
Fed 31,985 43,953 15.00% 13.80% 28.80% 11,968 4.00% 11,379 25.89%
PE 43,954 63,969 22.00% 13.80% 35.80% 20,015 7.00% 18,544 28.99%
Fed 63,970 87,907 22.00% 16.70% 38.70% 23,937 2.90% 27,808 31.63%
Fed 87,908 136,270 26.00% 16.70% 42.70% 48,362 4.00% 48,458 35.56%
136,271 235,000 29.00% 16.70% 45.70% 98,729 3.00% 93,578 39.82%
Quebec
Source From To Federal QC Fed+QC $ Diff % Diff End Tax Average
QC 0 41,925 15.00% 16.00% 31.00% 41,925 31.00% 12,997 31.00%
Fed 41,926 43,953 15.00% 20.00% 35.00% 2,027 4.00% 13,706 31.18%
QC 43,954 82,985 22.00% 20.00% 42.00% 39,031 7.00% 30,099 36.27%
Fed 82,986 87,907 22.00% 25.00% 47.00% 4,921 5.00% 32,412 36.87%
QC 87,908 100,970 26.00% 25.00% 51.00% 13,062 4.00% 39,074 38.70%
Fed 100,971 136,270 26.00% 25.75% 51.75% 35,299 0.75% 57,341 42.08%
136,271 235,000 29.00% 25.75% 54.75% 98,729 3.00% 111,395 47.40%
Saskatchewan
Source From To Federal SK Fed+SK $ Diff % Diff End Tax Average
SK 0 43,292 15.00% 11.00% 26.00% 43,292 26.00% 11,256 26.00%
Fed 43,293 43,953 15.00% 13.00% 28.00% 660 2.00% 11,441 26.03%
Fed 43,954 87,907 22.00% 13.00% 35.00% 43,953 7.00% 26,824 30.51%
SK 87,908 123,692 26.00% 13.00% 39.00% 35,784 4.00% 40,780 32.97%
Fed 123,693 136,270 26.00% 15.00% 41.00% 12,577 2.00% 45,937 33.71%
136,271 235,000 29.00% 15.00% 44.00% 98,729 3.00% 89,377 38.03%
Yukon
Source From To Federal YT Fed+YT $ Diff % Diff End Tax Average
Fed&YT 0 43,953 15.00% 7.04% 22.04% 43,953 22.04% 9,687 22.04%
Fed&YT 43,954 87,907 22.00% 9.68% 31.68% 43,953 9.64% 23,612 26.86%
Fed&YT 87,908 136,270 26.00% 11.44% 37.44% 48,362 5.76% 41,718 30.61%
136,271 235,000 29.00% 12.76% 41.76% 98,729 4.32% 82,948 35.30%