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Federal Income Tax Rates
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Income tax Brackets and Rates
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| 2004 |
2003 |
| Range of Taxable Income |
Tax Rate |
Range of Taxable Income |
Tax Rate |
| $0 to $35,000 |
16% |
$0 to $32,183 |
16% |
| $35,000 to $70,000 |
22% |
$32,183 to $64,368 |
22% |
| $70,000 to $113,804 |
26% |
$64,368 to $104,648 |
26% |
| Over $113,804 |
29% |
Over $104,648 |
29% |
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Personal Tax Credits
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Personal tax credits are calculated at 17% of the following prescribed amounts. This list comprises most, but not all, personal tax credit amounts.
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| Prescribed Amounts |
2004 |
2003 |
| Basic personal |
$8,012 |
$7,756 |
| Spousal or equivalent-to-spouse - reduced if spouse's income exceeds $614 in 2004 and $659 in 2003 |
$6,803 |
$6,586 |
| Age - reduced by 15% of net income in excess of $26,284 in 2004 and $28,193 in 2003 |
$3,531 |
$3,787 |
| Pension income |
$1,000 |
$1,000 |
| Disability |
$4,293 |
$6,279 |
| Medical expenses |
Amount in excess of lesser of $1,637 or 3%
of net income |
Amount in excess of lesser of $1,755 or 3%
of net income |
| Charitable donations |
16% on first $200 and 29% thereafter |
16% on first $200 and 29% thereafter |
| Canada Pension Plan premiums |
Amount paid to maximum of $1,831.50 |
Amount paid to maximum of $1,801.80 |
| Employment Insurance |
Amount paid to maximum of $722.20 |
Amount paid to maximum of $819.00 |
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Provincial Income Tax Rates
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Provinces now have their own tax brackets and personal tax credits. Some brackets mirror the Federal brackets, but most do not. Calculating effective / marginal tax rates is now not quite the simple process it once was.
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Income tax rates for selected provinces are as follows
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| 2004 |
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2003 |
| Range of Taxable Income |
Tax Rate |
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Range of Taxable Income |
Tax Rate |
| British Columbia |
| $0 to $32,476 |
6.05% |
|
$0 to $31,653 |
6.05% |
| $32,476 to $64,954 |
9.15% |
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$31,653 to $63,308 |
9.15% |
| $64,954 to $74,575 |
11.7% |
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$63,308 to $72,685 |
11.7% |
| $74,575 to $90,555 |
13.7% |
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$72,685 to $88,260 |
13.7% |
| Over $90,555 |
14.7% |
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Over $88,260 |
14.7% |
| Alberta |
| All taxable income |
10% |
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All taxable income |
10% |
| Manitoba |
| $0 to $30,544 |
10.9% |
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$0 to $30,544 |
10.9% |
| $30,544 to $65,000 |
14.0% |
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$30,544 to $65,000 |
14.0% |
| Over $65,000 |
17.4% |
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Over $65,000 |
17.4% |
| Ontario |
| $0 to $33,375 |
6.05% |
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$0 to $32,435 |
6.05% |
| $33,375 to $66,752 |
9.15% |
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$32,435 to $64,871 |
9.15% |
| Over $66,752 |
11.16% |
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Over $64,871 |
11.16% |
| Ontario surtaxes |
| 20% of tax in excess of $3,856 |
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20% of tax in excess of $3,747 |
| AND 36% of tax in excess of $4,864 |
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AND 36% of tax in excess of $4,727 |
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Provincial Personal Tax Credits
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Like the federal system, the provincial tax credits are calculated at a given rate applied to the prescribed amounts. Following is a partial list of credits for selected provinces.
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| British Columbia - 6.05% |
| Prescribed Amounts |
2004 |
2003 |
| Basic personal |
$8,523 |
$7,756 |
| Spousal or equivalent-to-spouse - reduced if spouse's income exceeds $614 in 2004 and $659 in 2003 |
$7,298 |
$6,586 |
| Age - reduced by 15% of net income in excess of $28,450 in 2004 and $28,193 in 2003 |
$3,822 |
$3,787 |
| Pension income |
$1,000 |
$1,000 |
| Disability |
$6,392 |
$6,279 |
| Medical expenses |
Amount in excess of lesser of $1,772 or 3% of net income |
Amount in excess of lesser of $1,755 or 3% of net income |
| Charitable donations |
6.05% on first $200 and 14.7% thereafter |
17% on first $200 and 29% thereafter |
| Canada Pension Plan premiums |
Amount paid to maximum of $1,831.50 |
Amount paid to maximum of $1,801.80 |
| Employment Insurance |
Amount paid to maximum of $722.20 |
Amount paid to maximum of $819.00 |
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