Income Tax Act s. 117, 117.1, 121
The Federal tax brackets and personal tax credit amounts are increased for 2024 by an indexation factor of1.047 (a 4.7% increase).
See Indexationof the Personal Income Tax System for how the indexation factors arecalculated.
The federal indexation factors, tax brackets and tax rates for 2024 havebeen confirmed to Canada Revenue Agency(CRA) information.
In order to determine the total tax rate paid in your province or territory, see the combined marginal tax rates for yourprovince or territory. If you are not a resident of Canada, see WhoPays Tax in Canada and on What Income?
Tax Tip: read the article Understanding the Tables of Personal Income Tax Rates,especially if you are trying to compare the rates below to the marginal taxrates in the Basic Tax Calculator or the Detailed Tax Calculators.
| TaxTips.ca - Canadian Tax Rates - Federal |
| 2024 Taxable Income(1) | Canada 2024 Marginal Tax Rates | 2023 Taxable Income(1) | Canada 2023 Marginal Tax Rates |
Other
Income | Capital
Gains | Canadian Dividends | Other
Income | Capital
Gains | Canadian Dividends |
| Eligible | Non-Eligible | Eligible | Non-Eligible |
| first $55,867 | 15.00% | 7.50% | -0.03% | 6.87% | first $53,359 | 15.00% | 7.50% | -0.03% | 6.87% |
| over $55,867 up to $111,733 | 20.50% | 10.25% | 7.56% | 13.19% | over $53,359 up to $106,717 | 20.50% | 10.25% | 7.56% | 13.19% |
| over $111,733 up to $173,205 | 26.00% | 13.00% | 15.15% | 19.52% | over $106,717 up to $165,430 | 26.00% | 13.00% | 15.15% | 19.52% |
| over $173,205 up to $246,752 | 29.32% | 14.66% | 19.73% | 23.34% | over $165,430 up to $235,675 | 29.32% | 14.66% | 19.73% | 23.34% |
| over $246,752 | 33.00% | 16.50% | 24.81% | 27.57% | over $235,675 | 33.00% | 16.50% | 24.81% | 27.57% |
Marginal tax rate for dividends is a % of actual dividends received (not grossed-up taxable amount).
Marginal tax rate for capital gains is a % of total capital gains (not taxable capital gains).
Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is 15%.
For more information see dividend tax credits.
Copyright © 2002 Boat Harbour Investments Ltd. |
TaxTips.ca
Federal Basic Personal Amount |
| 2024 Personal Amounts (1) | 2024 Tax Rate | 2023 Personal Amounts (1) | 2023 Tax Rate |
| Minimum | $14,156 | 15% | Minimum | $13,520 | 15% |
| Maximum | 15,705 | 15% | Maximum | 15,000 | 15% |
(1) The personal amount for 2023 and 2024 is increasedfederally and for Yukon:- for 2024: from $14,156 to $15,705 for taxpayers with net income(line 23600) of $173,205 or less. For incomes above this threshold, the additionalamount of $1,549 is reduced until it becomes zero at net income of $246,752.
- for 2023: from $13,521 to $15,000 for taxpayers with net income(line 23600) of $165,430 or less. For incomes above this threshold, the additionalamount of $1,479 is reduced until it becomes zero at net income of $235,675.
The minimum and maximum personal amounts for 2024 are indexed from the 2023amounts. See EnhancedBasic Personal Amount.
Themarginal tax rates in blue above have been adjusted to reflect these changes.The table of marginal tax rates assume that line 23600 net income is equal to taxableincome for this purpose.
For 2024, the marginal rate for $173,205 to $246,752 is 29.32% because of theabove-noted personal amount reduction through this tax bracket. The additional0.32% is calculated as 15% x ($15,705 - $14,156) / ($246,752 - $173,205).
For 2023, the marginal rate for $165,430 to $235,675 is 29.32% because of theabove-noted personal amount reduction through this tax bracket. The additional0.32% is calculated as 15% x ($15,000 - $13,520) / ($235,675 - $165,430).
Since the minimum and maximum amounts are being indexed at the same rate for2024 and later years, the marginal tax rate for the 4th tax bracket will remainat 29.32% in later years.
Copyright © 2002 Boat Harbour Investments Ltd.
Revised: January 23, 2024
FAQs
The tax rates in Ontario range from 5.05% to 13.16% of income and the combined federal and provincial tax rate is between 20.05% and 53.53%. Ontario's marginal tax rate increases as your income increases so you pay higher taxes on the level of income that falls into a higher tax bracket.
What are the federal tax rates for 2023 2024? ›
2023 Tax Brackets (Taxes Due in April 2024)
| Tax Rate | Single | Head of household |
|---|
| 10% | Not over $11,000 | Not over $15,700 |
| 12% | Over $11,000 but not over $44,725 | Over $15,700 but not over $59,850 |
| 22% | Over $44,725 but not over $95,375 | Over $59,850 but not over $95,350 |
| 24% | Over $95,375 but not over $182,100 | Over $95,350 but not over $182,100 |
3 more rowsApr 16, 2024
The new federal income tax brackets and tax rates are:
- Up to $53,359 of income is taxed at 15%
- Income between $53,359 and $106,717 is taxed at 20.5%
- Income between $106,717 and $165,430 is taxed at 26%
- Income between $165,430 and $235,675 is taxed at 29%
- Above $235,675, income is taxed at 33%
The tax rates in Ontario range from 5.05% to 13.16% of income and the combined federal and provincial tax rate is between 20.05% and 53.53%. Ontario's marginal tax rate increases as your income increases so you pay higher taxes on the level of income that falls into a higher tax bracket.
What is the extra standard deduction for seniors over 65 in 2024? ›
IRS extra standard deduction for older adults
For 2024, the additional standard deduction is $1,950 if you are single or file as head of household.
At what age is Social Security no longer taxed? ›
This meant that as benefits rose, more recipients crossed over the thresholds. Now 56 percent of beneficiaries pay income tax on a portion of their benefits, sometimes as much as 85% if their total income exceeds upper thresholds. There is no age at which you will no longer be taxed on Social Security payments.
What is the federal income tax rate in Canada? ›
Income Tax Act s. 117, 117.1, 121
| TaxTips.ca - Canadian Tax Rates - Federal |
|---|
| 2024 Taxable Income(1) | Canada 2024 Marginal Tax Rates | Canada 2023 Marginal Tax Rates |
|---|
| first $55,867 | 15.00% | 7.50% |
| over $55,867 up to $111,733 | 20.50% | 10.25% |
| over $111,733 up to $173,205 | 26.00% | 13.00% |
9 more rowsJan 23, 2024
The answer to whether taxes in Canada are higher than in the US depends on various factors, including income level, the type of taxes considered, and the benefits received in return. Generally, Canada has higher income tax rates, especially for higher earners, but offers more extensive social services.
What is the tax exemption for seniors in Canada? ›
What could you get? Goods and services tax / harmonized sales tax (GST/HST) credit – up to $519 per year for an eligible individual and up to $680 per year for an eligible couple. Age amount – non-refundable tax credit up to $8,396 per year if you are 65 and older.
Which province in Canada has the highest tax rate? ›
Which Canadian province has the highest income tax rate? Quebec has the highest income tax rate out of all the provinces and territories. Quebec is Canada's second most populated province, with a population of about 8.5 million, and French is the predominantly spoken language.
lottery winnings, and raffle prizes, unless the circ*mstances deem that the proceeds are considered income from employment, business or property, or a prize for achievement. For instance, prizes from employer-promoted contests could be considered employment income.
How much foreign income is tax free in Canada? ›
Basically, you are allowed earn up to $15,000 tax free in the tax year if 90% or more of your total income was sourced in Canada. If you earned more than 10% outside Canada, you won't be eligible to earn any tax free income up to a total amount of $15,000.
What are the Canadian tax brackets for 2024? ›
2024 provincial and territorial income tax rates
| Tax rate | Taxable income threshold |
|---|
| 8.79% | on the portion of taxable income that is $29,590 or less, plus |
| 14.95% | on the portion of taxable income over $29,590 up to $59,180, plus |
| 16.67% | on the portion of taxable income over $59,180 up to $93,000, plus |
2 more rowsJan 23, 2024
In reality, total taxes in Canada are actually higher than these statistics suggest because of deferred taxes. When governments run deficits, they shift the burden of paying for today's spending onto younger generations, who will pay for it through higher taxes (and/or lower spending) in the future.
What is the federal income tax bracket for 2024? ›
In 2023 and 2024, there are seven federal income tax rates and brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Taxable income and filing status determine which federal tax rates apply to you and how much in taxes you'll owe that year.
What are federal tax rates provide a chart for 2023? ›
2023 tax rates for a single taxpayer
| Tax rate | on taxable income from . . . | up to . . . |
|---|
| 10% | $0 | $11,000 |
| 12% | $11,001 | $44,725 |
| 22% | $44,726 | $95,375 |
| 24% | $95,376 | $182,100 |
3 more rowsThe U.S. currently has seven federal income tax brackets, with rates of 10%, 12%, 22%, 24%, 32%, 35% and 37%. If you're one of the lucky few to earn enough to fall into the 37% bracket, that doesn't mean that the entirety of your taxable income will be subject to a 37% tax. Instead, 37% is your top marginal tax rate.
What are the tax rates going to change in 2024? ›
The tax inflation adjustments for 2024 rose by 5.4% from 2023 (which is slightly lower than the 7.1% increase the 2023 tax year had over the 2022 rates). In 2024, the top tax rate of 37% applies to those earning over $609,350 for individual single filers, up from $578,125 last year.
Are federal income tax rates changing in 2023? ›
Each year, the Internal Revenue Service adjusts income tax brackets, according to a formula set by Congress. For taxes on 2023 income, high inflation prompted the IRS to raise thresholds 7% for income tax brackets, an unusually large percentage.
