Canada Revenue Agency
www.cra.gc.ca
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What are the income tax rates in Canada for 2007?
Federal tax rates for 2007 are:
- 15.5% on the first $37,178 of taxable income, +
- 22% on the next $37,179 of taxable income (on the portion of taxable income between $37,178 and $74,357), +
- 26% on the next $46,530 of taxable income (on the portion of taxable income between $74,357 and $120,887), +
- 29% of taxable income over $120,887.
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 $37,178 or less | Use this column if your taxable income is more than $37,178, but not more than $74,357 | Use this column if your taxable income is more than $74,357, but not more than $120,887 | Use this column if your taxable income is more than $120,887 | ||
| Enter your taxable income from line 260 of your return |
1 |
||||
| Base amount | − 0 | − 37,178 | − 74,357 | − 120,887 |
2 |
| Line 1 minus line 2 (this amount cannot be negative) | = | = | = | = |
3 |
| Federal tax rate | × 15.5% | × 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 | + 5,763 | + 13,942 | + 26,040 |
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 2007
Under the current tax on income method, 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 or Territorial information and forms in your 2007 tax package.
| Provinces / Territories | Rate(s) |
|---|---|
| Newfoundland and Labrador | 9.64% on the first $29,886 of taxable income, + 14.98% on the next $29,886, + 17.26% on the amount over $59,772 |
| Prince Edward Island | 9.8% on the first $31,369 of taxable income, + 13.8% on the next $31,370, + 16.7% on the amount over $62,739 |
| 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 | 10.12% on the first $34,186 of taxable income, + 15.48% on the next $34,188, + 16.8% on the next $42,787, + 17.95% on the amount over $111,161 |
| Ontario | 6.05% on the first $35,488 of taxable income, + 9.15% on the next $35,488, + 11.16% on the amount over $70,976 |
| Manitoba | 10.9% on the first $30,544 of taxable income, + 13% on the next $34,456, + 17.4% on the amount over $65,000 |
| Saskatchewan | 11% on the first $38,405 of taxable income, + 13% on the next $71,324, + 15% on the amount over $109,729 |
| Alberta | 10% of taxable income |
| British Columbia | 5.7% on the first $34,397 of taxable income, + 8.65% on the next $34,397, + 11.1% on the next $10,190, + 13% on the next $16,925, + 14.7% on the amount over $95,909 |
| Yukon | 7.04% on the first $37,178 of taxable income, + 9.68% on the next $37,179, + 11.44% on the next $46,530, + 12.76% on the amount over $120,887 |
| Northwest Territories | 5.9% on the first $35,315 of taxable income, + 8.6% on the next $35,316, + 12.2% on the next $44,199, + 14.05% on the amount over $114,830 |
| Nunavut | 4% on the first $37,178 of taxable income, + 7% on the next $37,179, + 9% on the next $46,530, + 11.5% on the amount over $120,887 |