Canadian Marginal Tax Rates – 2019


This post provides the 2019 combined marginal and average tax rates as tables, charts and a downloadable spreadsheet for the Canadian federal government and all the provinces and territories. It now includes some of the hidden taxes that are not shown on the income tax forms rate tables.

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

The Marginal Tax Rate 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 and using a standard rate without regard to your province of residence can lead to erroneous results if you are not careful.

The federal government has 5 tax brackets and the provinces have from 3 to 6 which rarely match the federal brackets. This results in between 6 and 10 tax brackets. Thus, income differences and the marginal rate between brackets sometimes are not too great.

The 2019 data included here and on the spreadsheet can be found on the Federal and Quebec websites. These may change when the 2019 tax forms are issued.

Use the rates and tax brackets given here when doing any investment planning during 2019.

Hidden Taxes are Now Included

Ontario and Prince Edward Island add taxes that are not part of the rate tables on the tax forms. For example, Ontario has 2 hidden taxes: the surtax and the Health Premium. The former becomes active for incomes around $75,000 (with standard personal deductions) and is a fixed percent of taxes paid of 56%, while the later starts at $20,000 and increases as income increases up to $200,000 where it is a fixed amount of $900. The impact is that the maximum marginal tax rate increases from 46.16% to 53.88% because of these extra taxes.

The Spreadsheet and a Combined Marginal Rate Example

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 Ontario. You may use any of the charts or tables. A link to this post or the author would be appreciated.

The blue line is the marginal tax rate while the dashed 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.

Differences Between Provinces

There are significant differences between each province. For example, the combined federal and provincial first tax brackets are given in the chart below, by province. The blue bars (left vertical axis) are the maximum income for the bracket and the red bars and percentages (right vertical axis) are the rate each dollar is taxed at. Notice that the % values range from 19% to 30% for the first $30,000 to $45,000.

The following chart shows the same information but for the last tax bracket. Notice that 7 provinces now take 50% (including the federal government taxes) or more of each additional dollar above a taxable income of over $200,000. All but 2 of the remainder are above 47%.

Actual Tax Rate

Keep in mind that you never pay taxes on all of your income at the Marginal Tax Rate as it only applies to the income above the start of the tax bracket. You also do not pay taxes on all of your income at the Average tax rate, as you will have deductions that reduce the actual tax rate. The following chart for Ontario for 2014 taxes is taken from Impact of Tax Credits on Average Tax Rate which shows that the actual rate is always less than the average rate. The green line is the actual tax rate on all income, with a few of the standard deductions for a retired person.Impact of Tax Credits on Average Tax Rate

Combined Federal & Provincial Tax Brackets Charts

The following charts for the federal and combined federal and provincial tax rates are included in the spreadsheet. They are included here so that you can view the differences between provinces and examine your own province. Because it is hard to determine exact values, scroll down to the table below for more details.

Combined Federal & Provincial Tax Brackets Table

The way to interpret the table 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 0 47,630 15.00% 10.00% 25.00% 47,630 25.00% 11,908 25.00%
Fed 47,631 95,259 20.50% 10.00% 30.50% 47,628 5.50% 26,434 27.75%
AB 95,260 131,220 26.00% 10.00% 36.00% 35,960 5.50% 39,380 30.01%
Fed 131,221 147,667 26.00% 12.00% 38.00% 16,446 2.00% 45,629 30.90%
AB 147,668 157,464 29.00% 12.00% 41.00% 9,796 3.00% 49,645 31.53%
AB 157,465 209,952 29.00% 13.00% 42.00% 52,487 1.00% 71,690 34.15%
Fed 209,953 210,371 29.00% 14.00% 43.00% 418 1.00% 71,870 34.16%
AB 210,371 334,929 33.00% 15.00% 48.00% 124,557 5.00% 131,657 39.31%
British Columbia
Source From To Federal BC Fed+BC $ Diff % Diff End Tax Average
BC 0 40,707 15.00% 5.06% 20.06% 40,707 20.06% 8,166 20.06%
Fed 40,708 47,630 15.00% 7.70% 22.70% 6,922 2.64% 9,737 20.44%
BC 47,631 81,416 20.50% 7.70% 28.20% 33,785 5.50% 19,264 23.66%
BC 81,417 93,476 20.50% 10.50% 31.00% 12,059 2.80% 23,003 24.61%
Fed 93,477 95,259 20.50% 12.29% 32.79% 1,782 1.79% 23,587 24.76%
BC 95,260 113,506 26.00% 12.29% 38.29% 18,246 5.50% 30,573 26.94%
Fed 113,507 147,667 26.00% 14.70% 40.70% 34,160 2.41% 44,477 30.12%
BC 147,668 153,900 29.00% 14.70% 43.70% 6,232 3.00% 47,200 30.67%
Fed 153,901 210,371 29.00% 16.80% 45.80% 56,470 2.10% 73,063 34.73%
BC 210,372 300,000 33.00% 16.80% 49.80% 89,628 4.00% 117,698 39.23%
Manitoba
Source From To Federal MB Fed+MB $ Diff % Diff End Tax Average
MB 0 32,670 15.00% 10.80% 25.80% 32,670 25.80% 8,429 25.80%
Fed 32,671 47,630 15.00% 12.75% 27.75% 14,959 1.95% 12,580 26.41%
MB 47,631 70,610 20.50% 12.75% 33.25% 22,979 5.50% 20,221 28.64%
Fed 70,611 95,259 20.50% 17.40% 37.90% 24,648 4.65% 29,562 31.03%
Fed 95,260 147,667 26.00% 17.40% 43.40% 52,407 5.50% 52,307 35.42%
Fed 147,668 210,371 29.00% 17.40% 46.40% 62,703 3.00% 81,401 38.69%
Fed 210,372 300,000 33.00% 17.40% 50.40% 89,628 4.00% 126,573 42.19%
New Brunswick
Source From To Federal NB Fed+NB $ Diff % Diff End Tax Average
NB 0 42,592 15.00% 9.68% 24.68% 42,592 24.68% 10,512 24.68%
Fed 42,593 47,630 15.00% 14.82% 29.82% 5,037 5.14% 12,014 25.22%
NB 47,631 85,184 20.50% 14.82% 35.32% 37,553 5.50% 25,277 29.67%
Fed 85,185 95,259 20.50% 16.52% 37.02% 10,074 1.70% 29,007 30.45%
NB 95,260 138,491 26.00% 16.52% 42.52% 43,231 5.50% 47,389 34.22%
Fed 138,492 147,667 26.00% 17.84% 43.84% 9,175 1.32% 51,411 34.82%
NB 147,668 157,778 29.00% 17.84% 46.84% 10,110 3.00% 56,147 35.59%
Fed 157,779 210,371 29.00% 20.30% 49.30% 52,592 2.46% 82,074 39.01%
NB 210,372 300,000 33.00% 20.30% 53.30% 89,628 4.00% 129,846 43.28%
Newfoundland and Labrador
Source From To Federal NL Fed+NL $ Diff % Diff End Tax Average
NL 0 37,591 15.00% 8.70% 23.70% 37,591 23.70% 8,909 23.70%
Fed 37,592 47,630 15.00% 14.50% 29.50% 10,038 5.80% 11,870 24.92%
NL 47,631 75,181 20.50% 14.50% 35.00% 27,550 5.50% 21,513 28.61%
Fed 75,182 95,259 20.50% 15.80% 36.30% 20,077 1.30% 28,801 30.23%
NL 95,260 134,224 26.00% 15.80% 41.80% 38,964 5.50% 45,088 33.59%
Fed 134,225 147,667 26.00% 17.30% 43.30% 13,442 1.50% 50,908 34.47%
NL 147,668 187,913 29.00% 17.30% 46.30% 40,245 3.00% 69,542 37.01%
Fed 187,914 210,371 29.00% 18.30% 47.30% 22,457 1.00% 80,164 38.11%
NL 210,372 300,000 33.00% 18.30% 51.30% 89,628 4.00% 126,143 42.05%
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 47,630 15.00% 14.95% 29.95% 18,039 6.16% 12,442 26.12%
NS 47,631 59,180 20.50% 14.95% 35.45% 11,549 5.50% 16,536 27.94%
Fed 59,181 95,259 20.50% 16.67% 37.17% 36,078 1.72% 29,946 31.44%
NS 95,260 93,000 26.00% 16.67% 42.67% -2,260 5.50% 28,982 31.16%
Fed 93,001 147,667 26.00% 17.50% 43.50% 54,666 0.83% 52,762 35.73%
NS 147,668 150,000 29.00% 17.50% 46.50% 2,332 3.00% 53,846 35.90%
NS 150,001 210,371 29.00% 21.00% 50.00% 60,370 3.50% 84,031 39.94%
NS 210,372 300,000 33.00% 21.00% 54.00% 89,628 4.00% 132,430 44.14%
Northwest Territories
Source From To Federal NT Fed+NT $ Diff % Diff End Tax Average
NT 0 43,137 15.00% 5.90% 20.90% 43,137 20.90% 9,016 20.90%
Fed 43,138 47,630 15.00% 8.60% 23.60% 4,492 2.70% 10,076 21.15%
NT 47,631 86,277 20.50% 8.60% 29.10% 38,646 5.50% 21,322 24.71%
Fed 86,278 95,259 20.50% 12.20% 32.70% 8,981 3.60% 24,259 25.47%
NT 95,260 140,267 26.00% 12.20% 38.20% 45,007 5.50% 41,451 29.55%
Fed 140,268 147,667 26.00% 14.05% 40.05% 7,399 1.85% 44,414 30.08%
Fed 147,668 200,000 29.00% 14.05% 43.05% 52,332 3.00% 66,943 33.47%
Fed 200,001 300,000 33.00% 14.05% 47.05% 99,999 4.00% 113,993 38.00%
Nunavut
Source From To Federal NU Fed+NU $ Diff % Diff End Tax Average
NU 0 45,414 15.00% 4.00% 19.00% 45,414 19.00% 8,629 19.00%
Fed 45,415 47,630 15.00% 7.00% 22.00% 2,215 3.00% 9,116 19.14%
NU 47,631 90,829 20.50% 7.00% 27.50% 43,198 5.50% 20,995 23.12%
Fed 90,830 95,259 20.50% 9.00% 29.50% 4,429 2.00% 22,302 23.41%
Fed&NU 95,260 147,667 26.00% 11.50% 37.50% 52,407 8.00% 41,955 28.41%
NU 147,668 210,371 29.00% 11.50% 40.50% 62,703 3.00% 67,349 32.01%
NU 210,372 300,000 33.00% 11.50% 44.50% 89,628 4.00% 107,234 35.74%
Ontario
Source From To Federal ON Fed+ON $ Diff % Diff End Tax Average
ON 0 20,000 15.00% 5.05% 20.05% 20,000 20.05% 4,010 20.05%
ON 20,001 43,906 15.00% 6.46% 21.46% 23,905 21.46% 9,421 21.46%
Fed 43,907 47,630 15.00% 15.19% 30.19% 3,723 8.73% 10,545 22.14%
ON 47,631 87,813 20.50% 15.19% 35.69% 40,182 5.50% 24,884 28.34%
Fed 87,814 95,259 20.50% 18.04% 38.54% 7,445 2.86% 27,754 29.13%
Fed 95,260 147,667 26.00% 18.04% 44.04% 52,407 5.50% 50,834 34.42%
ON 147,668 150,000 29.00% 18.04% 47.04% 2,332 3.00% 51,931 34.62%
Fed 150,001 210,371 29.00% 19.38% 48.38% 60,370 1.33% 81,135 38.57%
ON 210,372 220,000 33.00% 19.38% 52.38% 9,628 4.00% 86,177 39.17%
ON 220,001 300,000 33.00% 20.88% 53.88% 79,999 1.50% 129,277 43.09%
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 47,630 15.00% 13.80% 28.80% 15,645 4.00% 12,438 26.11%
PE 47,631 63,969 20.50% 13.80% 34.30% 16,338 5.50% 18,042 28.20%
Fed 63,970 95,259 20.50% 18.37% 38.87% 31,289 4.57% 30,204 31.71%
Fed 95,260 147,667 26.00% 18.37% 44.37% 52,407 5.50% 53,457 36.20%
Fed 147,668 210,371 29.00% 18.37% 47.37% 62,703 3.00% 83,159 39.53%
Fed 210,372 300,000 33.00% 18.37% 51.37% 89,628 4.00% 129,201 43.07%
Quebec
Source From To Federal QC Fed+QC $ Diff % Diff End Tax Average
QC 0 43,790 15.00% 15.00% 30.00% 43,790 30.00% 13,137 30.00%
Fed 43,791 47,630 15.00% 20.00% 35.00% 3,839 5.00% 14,481 30.40%
QC 47,631 87,575 20.50% 20.00% 40.50% 39,944 5.50% 30,658 35.01%
Fed 87,576 95,259 20.50% 24.00% 44.50% 7,683 4.00% 34,077 35.77%
QC 95,260 106,555 26.00% 24.00% 50.00% 11,295 5.50% 39,724 37.28%
Fed 106,556 147,667 26.00% 25.75% 51.75% 41,111 1.75% 60,999 41.31%
Fed 147,668 210,371 29.00% 25.75% 54.75% 62,703 3.00% 95,329 45.31%
Fed 210,372 300,000 33.00% 25.75% 58.75% 89,628 4.00% 147,986 49.33%
Saskatchewan
Source From To Federal SK Fed+SK $ Diff % Diff End Tax Average
SK 0 45,225 15.00% 10.50% 25.50% 45,225 25.50% 11,532 25.50%
Fed 45,226 47,630 15.00% 12.50% 27.50% 2,404 2.00% 12,193 25.60%
Fed 47,631 95,259 20.50% 12.50% 33.00% 47,628 5.50% 27,911 29.30%
SK 95,260 129,214 26.00% 12.50% 38.50% 33,954 5.50% 40,983 31.72%
Fed 129,215 147,667 26.00% 14.50% 40.50% 18,452 2.00% 48,456 32.81%
Fed 147,668 210,371 29.00% 14.50% 43.50% 62,703 3.00% 75,732 36.00%
Fed 210,372 300,000 33.00% 14.50% 47.50% 89,628 4.00% 118,305 39.44%
Yukon
Source From To Federal YT Fed+YT $ Diff % Diff End Tax Average
Fed&YT 0 47,630 15.00% 6.40% 21.40% 47,630 21.40% 10,193 21.40%
Fed&YT 47,631 95,259 20.50% 9.00% 29.50% 47,628 8.10% 24,243 25.45%
Fed&YT 95,260 147,667 26.00% 10.90% 36.90% 52,407 7.40% 43,581 29.51%
Fed 147,668 200,000 29.00% 12.80% 41.80% 52,332 4.90% 65,456 32.73%
YT 200,001 500,000 33.00% 12.80% 45.80% 299,999 4.00% 202,856 40.57%
YT 500,001 520,001 33.00% 15.00% 48.00% 20,000 2.20% 212,456 40.86%