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What are the federal and provincial/territorial tax rates for 1998?
Federal tax is calculated by applying a basic rate of 17% on the first $29,590.00 of taxable income. The next portion of $29,590.00 of taxable income is subjected to a rate of 26%. The maximum rate of 29% is applied to any excess over $59,180.00 of taxable income (see calculation chart in Table 1). Basic federal tax is then calculated, on schedule 1 of the return, by subtracting non-refundable tax credits and, if applicable, certain other credits or adjustments.
An individual's provincial or territorial tax (except for Québec residents) is based on a percentage of basic federal tax (see Table 2). Some reductions, surtaxes or flat taxes might also apply as shown in Table 3.
| Taxable income | Rate | Total tax | |
| $29,590.00 or less | Taxable income _________ |
× 17% | = $ ________ |
| more than $29,590.00 but less than or equal to $59,180.00 | Taxable income $ _________ – $ 29,590.00 = $ _________ |
× 26% = |
$ 5,030.00 + $ ________ = $ ________ |
| more than $59,180.00 | Taxable income $ _________ – $ 59,180.00 = $ _________ |
× 29% = |
$ 12,724.00 + $ ________ = $ ________ |
| Provinces / Territories | % of Basic federal tax |
| Newfoundland | 69% |
| Prince Edward Island | 59.5% |
| Nova Scotia | 57.5% |
| New Brunswick | 61% |
| Ontario | 42.75% |
| Manitoba | 51% |
| Saskatchewan | 49% |
| Alberta | 44% |
| British Columbia | 50.5% |
| Yukon Territory | 50% |
| Northwest Territories | 45% |
| Provinces / Territories | Calculation |
| Newfoundland (High income surtax) |
(Basic NFLD income tax – $7,900) × 10% |
| Prince Edward Island (Surtax) |
(Basic PEI income tax – $5,200) × 10% |
| Nova Scotia (Surtax) |
(Basic NS income tax – $10,000) × 10% |
| New Brunswick (Surtax) |
(Basic NB income tax – $13,500) × 8% |
| Ontario (Surtax) |
(Basic ON income tax – $4,057.50) × 20% PLUS (Basic ON income tax – $5,217.50) × 33% |
| Manitoba (Net income tax) (Surtax) |
Adjusted net income × 2% (Net income tax) minus (certain amounts) |
| Saskatchewan (Flat tax) (Basic SK tax) (Debt reduction surtax) (High income surtax) |
Adjusted net income × 2% SK tax + SK flat tax (Basic SK tax × 10%) – 150 $ (Basic SK tax – $4,000) × 15% |
| Alberta (Surtax) (Flat tax) |
(Basic AB tax – $3,500) × 8% Taxable income × 0.5% |
| British Columbia (Surtax) |
(Adjusted BC income tax – $5,300) × 30% PLUS (Adjusted BC income tax – $8,660) × 26% |
| Yukon Territory (Surtax) |
(Basic Yukon tax - $6,000) × 5% |
| Northwest Territories (Surtax) |
No surtax |
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Date modified: 2002-02-04 |
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