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What are the income tax rates in Canada for 2004?
Federal tax rates for 2004 are:
16% on the first $35,000 of taxable income;
22% on the next $35,000 of taxable income;
26% on the next $43,804 of taxable income; and
29% of taxable income over $113,804.
The chart below reproduces the first calculation that has to be made on Page 1 of Schedule 1 of the tax package to calculate net federal tax. Page 1 is also used to calculate federal non-refundable tax credits.
| Use this column if your taxable income is $35,000 or less | Use this column if your taxable income is more than $35,000, but not more than $70,000 | Use this column if your taxable income is more than $70,000, but not more than $113,804 | Use this column if your taxable income is more than $113,804 | ||
| Enter your taxable income from line 260 of your return |
1 |
||||
| Base amount | − 0 | − 35,000 | − 70,000 | − 113,804 |
2 |
| Line 1 minus line 2 (this amount cannot be negative) | = | = | = | = |
3 |
| Federal tax rate | × 16% | × 22% | × 26% | × 29% |
4 |
| Multiply the amount on line 3 by the tax rate on line 4 | = | = | = | = |
5 |
| Tax on the amount from line 2 | + 0 | + 5,600 | + 13,300 | + 24,689 |
6 |
| Add lines 5 and 6 | = | = | = | = |
7 |
The calculation continues on Page 2 of Schedule 1 to determine net federal tax.
Provincial/Territorial tax rates for 2004
Under the current tax on income method, provincial tax for all provinces (except Quebec) and territories is calculated the same way as federal tax.
Form 428 is used to calculate this provincial or territorial tax. Provincial or territorial specific non-refundable tax credits are also calculated on Form 428.
For complete details, see the Provincial information and forms in your 2004 tax package.
| Provinces / Territories | Rate(s) |
| Newfoundland and Labrador | 10.57% on the first $29,590 of taxable income, + 16.16% on the next $29,590, + 18.02% on the amount over $59,180 |
| Prince Edward Island | 9.8% on the first $30,754 of taxable income, + 13.8% on the next $30,755, + 16.7% on the amount over $61,509 |
| Nova Scotia | 8.79% on the first $29,590 of taxable income, + 14.95% on the next $29,590, + 16.67% on the next $33,820, + 17.5% on the amount over $93,000 |
| New Brunswick | 9.68% on the first $32,183 of taxable income, + 14.82% on the next $32,185, + 16.52% on the next $40,280, + 17.84% on the amount over $104,648 |
| Ontario | 6.05% on the first $33,375 of taxable income, + 9.15% on the next $33,377, + 11.16% on the amount over $66,752 |
| Manitoba | 10.9% on the first $30,544 of taxable income, + 14% on the next $34,456, + 17.4% on the amount over $65,000 |
| Saskatchewan | 11% on the first $36,155 of taxable income, + 13% on the next $67,145, + 15% on the amount over $103,300 |
| Alberta | 10% of taxable income |
| British Columbia | 6.05% on the first $32,476 of taxable income, + 9.15% on the next $32,478, + 11.7% on the next $9,621, + 13.7% on the next $15,980, + 14.7% on the amount over $90,555 |
| Yukon | 7.04% on the first $35,000 of taxable income, + 9.68% on the next $35,000, + 11.44% on the next $43,804, + 12.76% on the amount over $113,804 |
| Northwest Territories | 7.2% on the first $33,245 of taxable income, + 9.9% on the next $33,247, + 11.95% on the next $41,609, + 13.55% on the amount over $108,101 |
| Nunavut | 4% on the first $35,000 of taxable income, + 7% on the next $35,000, + 9% on the next $43,804, + 11.5% on the amount over $113,804 |
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Date modified: 2005-01-10 |
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